Raleigh Crowned America’s Top Large City for 2025

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News Summary

Raleigh, North Carolina, has been named the best-performing large city in the U.S. for 2025, according to the Milken Institute. The city’s diverse tech industry, strong job growth, and educational institutions contribute to its economic success. Despite a significant population increase and housing challenges, Raleigh stands out for its job opportunities and commitment to addressing affordability issues. This recognition marks Raleigh’s rise from the second position in 2024 to the top spot in 2025.

Raleigh Steals the Spotlight as America’s Top Large City for 2025!

Here’s some exciting news making waves: Raleigh, North Carolina has just been crowned the “best-performing” large city in the United States for 2025, according to a thorough analysis conducted by the Milken Institute. This vibrant city, renowned for its warm Southern charm and flourishing job market, has climbed to the top from its previous spot at No. 2 in 2024.

What’s the Secret Sauce?

So, what’s behind Raleigh’s meteoric rise this year? Several factors come into play, including a diverse tech industry that continues to attract talent and investment. The job opportunities in Raleigh are booming, and wages are seeing impressive growth as well. In fact, from 2018 to 2023, the city witnessed an incredible average job growth of 15.5% alongside wage increases that soared over 47%. That’s no small feat!

A Closer Look at the Numbers

The Milken Institute evaluated over 400 metropolitan areas and based their rankings on 13 important metrics surrounding job growth, wage growth, and housing affordability. Impressively, Raleigh shone in these metrics, landing in the top quarter for 11 out of the 13 categories. The city stood out in areas like high-tech impact and labor market performance, ranking seventh among 200 large cities, and fifth for access to economic opportunities. These achievements underscore the vibrant economic landscape that Raleigh boasts.

The High-Tech Boom

Raleigh’s high-tech sector, particularly in software publishing and computer systems design, plays a crucial role in its economic performance. The city benefits enormously from its proximity to major academic institutions, including the University of North Carolina at Chapel Hill, North Carolina State University, and Duke University. These establishments not only provide a steady stream of educated graduates but also foster innovation and entrepreneurial spirit.

A City on the Rise

The population in North Carolina swelled by nearly 165,000 residents in 2024 alone, with Raleigh’s metro area growing more than 30% since 2010. This rapid growth is a testament to the city’s allure and thriving economy. However, with more people comes the challenge of housing affordability. Despite offering relatively reasonable housing options, Raleigh ranks 30th among large cities in housing affordability, with about 75% of residents spending less than 30% of their income on housing.

The Housing Crunch

As of November 2024, the average home price shot up to around $450,000, representing a nearly 15% increase from the previous year. And here’s where it gets tricky—Raleigh is facing a notable housing shortage, with a deficit of roughly 65,000 units in Wake County. Local officials are keenly aware of this dilemma and are taking proactive steps to address it. Initiatives such as affordable housing bond funding and partnerships with community organizations are underway to help maintain a balance between growth and affordable living.

Looking to the Future

The seeds of Raleigh’s high-tech success story were sown back in the 1960s, thanks to IBM and the development of the Research Triangle Park. As the city continues to flourish, efforts to retain local talent, such as implementation of labor force retention initiatives, are paramount, ensuring that graduates from nearby colleges choose to stay and contribute to the local economy.

In conclusion, Raleigh’s rise to the top is no coincidence but rather the result of its thriving job market, booming tech industry, and efforts to maintain housing affordability. As the city moves forward, it will undoubtedly continue to capture the hearts of both its residents and newcomers alike. Let’s keep an eye on this Southern gem!