Economic growth in U.S. cities is accelerating in new and unexpected places, fueled by innovation, infrastructure investment, and workforce development. Our comprehensive analysis of economic growth in U.S. cities from 2019 to 2023 highlights the key drivers and top-performing communities shaping America’s future. This report uses metrics like GDP growth, job creation, housing expansion, export strength, and infrastructure improvements to rank cities that are not just following trends—they are setting them. Notably, Florida cities have recently ranked among the top in U-Haul’s 2024 moving growth rankings, underscoring the shifting landscape of economic opportunity.
Economic Growth in U.S. Cities: Methodology and Key Metrics
To determine which cities are leading in economic growth, we analyzed official data from sources such as the U.S. Census Bureau, Bureau of Economic Analysis, and Federal Highway Administration. The evaluation focused on:
- Business Applications: New business formation activity
- Gross Domestic Product (GDP): Total economic output
- Median Earnings: Income growth among residents
- Employment and Unemployment Rates: Labor market strength
- Population Growth: Demographic expansion
- Trade Exports: Value of exported goods
- Crime Rate: Safety and security
- Educational Attainment: Workforce skills and education
- Housing Units: Residential development
- Infrastructure: Roadway mileage and transit investments
Cities were grouped by size: small (under 250,000), mid-sized (250,000–500,000), and large (over 500,000). Each metric contributed to a total score, allowing for a fair comparison within each group.
Top Large U.S. Cities for Economic Growth
The largest U.S. cities continue to drive economic expansion, but the leaders in 2025 are not always the usual suspects. These cities excel in productivity, employment, and investment, setting the pace for the nation.
Austin, TX: Leading in GDP and Job Growth
Austin tops the list with a 51% surge in GDP and a 71% increase in new business applications. The city also saw a 12% rise in housing units and a 4% increase in educational attainment. Austin’s diverse economy, anchored by tech, government, and creative industries, generated a regional GDP of over $248 billion in 2023. Major projects like Project Connect demonstrate a commitment to long-term infrastructure.
Sacramento, CA: Entrepreneurial Energy and Business Growth
Sacramento stands out with a 166% increase in business applications and a 32% rise in median earnings. The city has invested in microgrants, fee relief, and data platforms to support small businesses, while employment and infrastructure gains reinforce its strong fundamentals.
Jacksonville, FL: Population Boom and Export Strength
Jacksonville leads in population growth among large cities, with a 9% increase and significant investments in airport, roadway, and drainage upgrades. The city posted 43% GDP growth, 10% housing expansion, and 25% export gains. JAXPORT remains a key logistics hub, supporting over 138,000 jobs and contributing more than $31 billion annually.
Phoenix, AZ: Infrastructure Expansion and Balanced Growth
Phoenix (including Mesa) achieved a 26% increase in roadway miles, 42% GDP growth, and a 12% rise in median earnings. Strategic land purchases and revitalization efforts, such as the Rio Salado corridor, signal ongoing economic resilience.
Fort Worth, TX: Education and Export Gains
Fort Worth excelled with a 9% increase in educational attainment and 40% export growth. Consistent performance in GDP, housing, and employment, along with university expansions, positions Fort Worth as a center for workforce development and trade.
Mid-Sized Economic Powerhouses: Sun Belt and Beyond
Mid-sized cities are rapidly closing the gap with larger metros, especially across the Sun Belt. These cities combine livability, opportunity, and momentum, driving robust economic growth.
Gilbert, AZ: Infrastructure and Earnings Surge
Gilbert leads mid-sized cities with a 32% increase in earnings and a 26% boost in roadway miles. Major infrastructure projects and a highly educated workforce support strong growth in tech, life sciences, and healthcare.
Tampa, FL: Diversified Economic Expansion
Tampa ranks second, powered by a 38% rise in median earnings and a 43% GDP surge. The city’s diversified economy, improving employment rates, and business activity expansions reinforce its regional importance.
Orlando, FL: Population and Income Growth
Orlando leads in population growth (14%) and posted a 36% increase in median earnings. Growth in tech, aerospace, and entertainment sectors underpins Orlando’s evolving economic profile.
St. Petersburg, FL: Entrepreneurship and Waterfront Trade
St. Petersburg saw a 98% increase in business applications and a 43% GDP rise. The city’s waterfront location, supportive small-business policies, and export gains make it a hub for innovation and trade.
Chandler, AZ: Tech and Infrastructure Strength
Chandler posted 27% growth in median earnings and 26% infrastructure expansion. Home to semiconductor and aerospace firms, Chandler benefits from regional connectivity and a strong mix of corporate campuses and commuter-ready streets.
Small Cities: New Economic Engines
Small cities are emerging as independent economic engines, with strong housing markets, rising incomes, and entrepreneurial ecosystems. These communities are proving they can deliver significant results. For instance, Port St. Lucie is leading the U.S. in new apartment construction growth, reflecting its dynamic approach to residential development.
Goodyear, AZ: Education and Housing Growth
Goodyear leads small cities with major gains in educational attainment and housing. With over 101,000 residents and a high share of college graduates, the city is unlocking thousands of acres for development and attracting major employers.
Nampa, ID: Labor Market Excellence
Nampa excels in reducing unemployment and boosting employment growth, with a 40% surge in median earnings and strong GDP performance. The city is becoming a high-output job hub.
Port St. Lucie, FL: Florida’s Entrepreneurial Frontier
Port St. Lucie is Florida’s new hotspot for startups, with a 108% increase in business applications. While trade and infrastructure growth are moderate, the city benefits from booming housing, steady GDP growth, and a workforce ready to build. The area is also attracting homebuyers from major metros amid significant market shifts, as detailed in recent migration trends.
Surprise, AZ: Rapid, Inclusive Development
Surprise ranks highly in employment and GDP growth. The city’s focus on infrastructure and opportunity has delivered rapid, inclusive development, though education levels are still catching up.
Murfreesboro, TN: Balanced, Sustainable Growth
Murfreesboro posts solid numbers across GDP, education, and job creation, making it a smart choice for families and businesses seeking sustainable growth.
Key Insights from Urban Development Experts
According to Steven Pedigo, Professor of Practice and Director of the LBJ Urban Lab at the University of Texas, the most successful cities are those investing in talent development, housing affordability, and digital infrastructure. Cities that align education, workforce training, and civic amenities are best positioned for future growth. Public-private partnerships and innovative policy approaches are essential for sustaining momentum.
Frequently Asked Questions About Economic Growth in U.S. Cities
What is driving economic growth in U.S. cities in 2025?
Economic growth is being driven by business formation, infrastructure investment, workforce development, and strong export activity. Cities that support innovation and education tend to grow faster.
How much has Port St. Lucie grown as an entrepreneurial hub?
Port St. Lucie saw a 108% increase in business applications, making it one of Florida’s fastest-growing cities for startups and small businesses. The city also benefits from steady housing and GDP growth.
Are there differences in economic growth between large, mid-sized, and small cities?
Yes, large cities often lead in overall GDP and infrastructure, while mid-sized and small cities are excelling in business formation, housing, and workforce development. Each group faces unique challenges and opportunities.
Can you find strong export economies outside major metro areas?
Many small and mid-sized cities, such as St. Petersburg and Goodyear, are developing strong export sectors. Strategic location and supportive policies help these cities compete globally.
Where are the fastest-growing retirement communities in the U.S.?
Florida cities like Port St. Lucie and Tampa are known for fast-growing retirement and active adult communities, thanks to their strong economies and quality of life.
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