News Summary
Raleigh, North Carolina, has been recognized as the best-performing large city in the United States according to a Milken Institute report. This city has shown significant improvements over the past years, climbing from third place in 2023 to second place in 2024, and finally to first place. The ranking is based on metrics such as job growth, wage growth, and housing affordability. Despite rapid population and economic growth, Raleigh faces a housing shortage that local officials are looking to address through new multifamily housing developments.
Raleigh, North Carolina, has been recognized as the best-performing large city in the United States for 2025 according to a report by the Milken Institute. This marks an advancement for the city, which previously secured second place in 2024 and third in 2023. The report evaluates over 400 metropolitan areas based on various factors including job growth, wage growth, housing affordability, and access to economic opportunities.
Raleigh’s impressive job growth rate of 15.5% from 2018 to 2023 has significantly contributed to its ranking. Over the same period, wages have surged by more than 47%. The city benefits from a robust and diverse tech sector, which plays a crucial role in sustaining its economic momentum. Furthermore, approximately 75% of Raleigh residents spend less than 30% of their income on housing, a status that supports the city’s high livability rating.
As of November 2024, the median home price in Raleigh reached around $450,000, reflecting a nearly 15% increase from the prior year and a staggering 50% increase since November 2020. Despite these rising costs, Raleigh’s housing remains more affordable compared to other major U.S. cities, which helps retain its population and attract new residents.
Raleigh also ranks highly for its impact on high-tech industries and labor market performance, placing 7th in these categories and 5th in access to economic opportunities among the 200 large cities surveyed. Other cities in the Carolinas, including Charleston and Myrtle Beach, rank 11th and 12th, respectively.
Population growth in Raleigh has been notable, with a more than 30% increase from 2010 to 2023. The state of North Carolina as a whole added nearly 165,000 residents in 2024, positioning it as the 4th fastest-growing state in the U.S.
Even with its robust growth, Raleigh faces a significant housing challenge. The current housing shortage in Wake County is estimated to be around 65,000 units, which poses hurdles for maintaining affordability amidst the rapid expansion. The situation has led to increased commuting for essential workers from neighboring counties, impacting the local economy and quality of life.
City officials are acutely aware of these challenges. Mayor Janet Cowell has emphasized the importance of balancing the economic growth that Raleigh is experiencing with efforts to enhance housing affordability and improve city services. Plans for future development include a focus on more multifamily housing projects to better accommodate the burgeoning population and meet the increasing housing demands in downtown areas of Raleigh.
Analysts and city planners note that finding a sustainable balance between growth and affordability will be critical for Raleigh’s continued success. Addressing the housing shortage and planning for the future growth of the city will be essential to maintain its top rankings in future assessments by organizations like the Milken Institute.
As Raleigh moves forward, the collaboration between local government, community organizations, and private developers will be crucial in steering the city towards a future where both economic prosperity and housing affordability can coexist.
Deeper Dive: News & Info About This Topic
- Newsweek: Best Performing Small Cities
- Live Now Fox: Best Performing Cities 2025
- ABC11: Raleigh Tops List of Best-Performing Large Cities
- Charlotte Observer: Raleigh’s Economic Performance
- Wikipedia: Raleigh
