Raleigh North Carolina Skyline
Raleigh, North Carolina has been named the best-performing large city in the U.S. for 2025 by the Milken Institute, climbing from its previous rank of No. 2. The city’s remarkable job and wage growth, vibrant tech scene, and affordable housing contribute to its recognition. Raleigh shines in areas like high-tech impact and labor market performance, alongside a significant increase in population and ongoing housing challenges. City leaders are implementing initiatives to ensure continued economic growth while addressing housing supply.
Big news for Raleigh, North Carolina! The Milken Institute has officially crowned this vibrant city as the “best-performing” large city in the United States for 2025. This marks a fantastic leap from its previous position at No. 2 in 2024, and it’s all thanks to Raleigh’s impressive job and wage growth, a bustling tech scene, and housing that’s still relatively affordable compared to other urban areas.
Raleigh has always been a key player in the Milken Institute’s yearly assessments when it comes to economic performance. This year, it shines even brighter by ranking in the top quarter of over 400 metropolitan areas evaluated across 13 economic metrics. Among the highlights, Raleigh has secured:
It’s not just a win for Raleigh, either. Other cities in the Carolinas are also making waves – Charleston comes in at 11th, and Myrtle Beach isn’t far behind at 12th place among large cities. In total, 12 out of 16 metro areas in North and South Carolina placed in the top 100, with seven of them landing in the top 50. Talk about a Carolinian takeover!
From 2018 to 2023, Raleigh has seen an astonishing average job growth rate of 15.5% along with a remarkable wage growth above 47%. This noteworthy success isn’t just a flash in the pan; it’s closely tied to Raleigh’s dynamic tech sector.
Speaking of tech, Raleigh specializes in software publishing and computer systems design, boasting a GDP share in these fields that’s higher than the national average. Essential to this success are nearby academic heavyweights like the University of North Carolina at Chapel Hill and North Carolina State University, which provide a skilled workforce ready to tackle industry challenges.
But while the economic news is overwhelmingly positive, there are still hurdles to overcome. North Carolina welcomed nearly 165,000 new residents in 2024 alone, pushing the population beyond 11 million and making it the fourth fastest-growing state. In Raleigh’s metro area, the population surged over 30% from 2010 to 2023, now standing at roughly 1.5 million people.
However, this growing population is creating some challenges in the housing market. There’s a serious rental shortage in Wake County, with estimates pointing to a need for 65,000 new units. This has propelled the median home price in Raleigh to around $450,000 as of November 2024, jumping nearly 15% from the previous year and nearly 50% higher than in 2020.
Despite these challenges, around 75% of Raleigh residents manage to keep their housing costs below 30% of their income, earning the city a 30th rank among large cities for housing affordability. City leaders understand the crucial balance between fostering economic growth and ensuring housing remains accessible, and they are currently pushing initiatives to enhance housing supply—these include funding for affordable housing bonds and partnerships with local organizations.
Wake County’s economy thrives on a diverse range of sectors, with professional and business services employing the highest number of workers, followed by trade, transportation, education, health services, government jobs, and leisure and hospitality. Major employers like Duke University, Walmart, and the State of North Carolina are integral to this success.
As Raleigh steps into its new title as the best large city in the U.S. for 2025, the future looks promising, albeit with some challenges. The community’s resilience and innovative spirit will surely take them through, potentially making them an even more inspirational example of growth and opportunity.
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