Raleigh economy ranks second among best-performing US cities. Here’s why.
Relatively strong job growth, wage growth and a robust density of high-tech industries pushed Raleigh up a spot to second in the annual best-performing cities rankings from the Milken Institute, an economic think tank.
Raleigh finished 16th among large U.S. metros in 2022 before surging up to No. 3 last year. In the new list released Tuesday, only Austin came in above the City of Oaks.
“The area has managed to attract high-tech firms and high-quality talent, driven by its proximity to three major universities located in Raleigh and the neighboring Durham-Chapel Hill metro areas,” the report read.
Milken used 13 indicators to judge 200 cities, and Raleigh landed in the top quartile on each of them. These included households with broadband (No. 36), affordable housing costs (No. 38) and short-term job growth (No. 28). The Milken report complimented the city’s post-pandemic tourism rebound and pointed out Raleigh is among the leaders for new apartment construction — though it still needs roughly 17,000 more housing units to meet demand.
Between 2017 and 2022, Raleigh’s job and wage growth ranked in the top 10 among large cities. One area of vulnerability, the report found, was that this growth has recently slowed “amid high commercial vacancy rates.”
This was the 12th consecutive year Raleigh ranked in the top 20. Milken divides its list between large and small U.S. cities. Charlotte came in at No. 10, while Wilmington was No. 21, Durham-Chapel Hill was No. 36, and Asheville was No. 61.
“Significant employment growth during the second half of 2021 and early 2022 has rocketed the Queen City to its first-ever top 10 ranking,” the report said of Charlotte, though it noted North Carolina’s biggest city had the “highest income inequality” among metros.
Another North Carolina city experienced one of the largest drops in this year’s list. The combined market of Greensboro and High Point ranked at No. 166, down 56 spots from 2023.
