Austin Named No. 1 U.S. City for Economic Growth, Study Finds

Central Texas is experiencing significant growth, with Austin at the forefront of this development. A recent study by Coworking Cafe has positioned the Texas capital as the top large city in the country for economic growth, highlighting its strong job market, increasing incomes, and growing population.

A recent study examining economic data from small, mid-size, and large U.S. cities between 2019 and 2023 revealed that Austin surpassed all other major cities in 11 key prosperity indicators, such as GDP growth, job creation, housing development, exports, and infrastructure improvements.

Austin achieved a remarkable score of 61 points, positioning itself at the forefront of the nation in terms of balancing productivity, employment, and investment, as highlighted in the study.

The city experienced an impressive 51% GDP increase over the last four years, marking the highest growth rate among major urban areas, driven by swift job growth in technology, manufacturing, and professional services.

Austin secured the second spot in housing expansion, showcasing a 12% rise in residential inventory, which highlights initiatives aimed at addressing the needs of the city’s increasing population. The percentage of residents with a college degree or higher increased by 4% during the same timeframe. In the latest developments, the city’s employment rate saw an increase of 1%, placing it third in the nation among large cities.

The entrepreneurial landscape in the city showed remarkable growth, boasting a 71% rise in new business applications, ranking fifth in the nation. Median earnings experienced a significant increase, rising by 33% to reach $54,283—marking the seventh-highest growth rate among major U.S. cities.

“Austin’s diverse economy—encompassing technology (with Dell, Apple, and Oracle); government (as the state capital); education (home to the University of Texas); and creative sectors (including music, film, and gaming)—produced a regional GDP surpassing $248 billion in 2023,” the report noted.

The city’s future looks promising thanks to significant infrastructure investments, such as Project Connect, which is a voter-approved revamp of Austin’s transit system. Despite observations of a slowdown in technology employment and housing interest, the research determined that Austin's diverse economic expansion positions it as “the undisputed leader” among cities in the United States.

A different city in Texas has also secured a high position in the rankings. Fort Worth secured the fifth spot among large cities, driven by a notable 9% rise in educational attainment and an impressive 8.3% increase in population.

The findings highlight Texas’s increasing economic influence, as its key urban areas persist in drawing jobs, residents, and investment at some of the quickest rates in the country.

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