The Cities With The Fastest-Growing Economies in America

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The United States boasts the largest GDP in the world in nominal terms, and urban areas are pivotal to the country’s economic prowess. Metropolitan areas contribute to approximately 90% of U.S. economic output, underscoring their significance.

Mapping America’s Economic Powerhouses

Using data from the U.S. Bureau of Economic Analysis (BEA) for 2021, the VisualCapitalist team has ranked the economic output of the top 15 U.S. cities, from New York City to Minneapolis. The data accounts for entire surrounding metropolitan areas, giving a comprehensive view of each city’s economic activity. For instance, the New York City metro area includes neighboring population centers such as Newark, NJ, and Jersey City, reaching a GDP of nearly $2 trillion.

Measuring a city’s economy at the metro level offers a more accurate representation of its economic activities. Metropolitan areas encompass not only the central city but also the economically connected suburban and rural areas.

America’s Economic Hubs

Some of the largest U.S. cities by GDP include New York City, Los Angeles, Dallas, and San Francisco. Here’s a look at the top ten metropolitan areas by GDP:

Rank	City	GDP (in thousands)
#1	New York-Newark-Jersey City, NY-NJ-PA	$1,992,779,274
#2	Los Angeles-Long Beach-Anaheim, CA	$1,124,682,354
#3	Chicago-Naperville-Elgin, IL-IN-WI	$764,583,227
#4	San Francisco-Oakland-Berkeley, CA	$668,677,573
#5	Washington-Arlington-Alexandria, DC-VA-MD-WV	$607,628,505
#6	Dallas-Fort Worth-Arlington, TX	$598,333,263
#7	Houston-The Woodlands-Sugar Land, TX	$537,066,232
#8	Boston-Cambridge-Newton, MA-NH	$531,671,846
#9	Seattle-Tacoma-Bellevue, WA	$479,966,484
#10	Philadelphia-Camden-Wilmington, PA-NJ-DE-MD	$477,580,629

New York City’s GDP stands out significantly, with its economy driven by industries like finance and media. Los Angeles follows with a $1.1 trillion economy, and Chicago ranks third with a GDP of just over $760 billion.

The Fastest Growing Cities

In addition to the largest economies, there are several up-and-coming cities with rapidly growing economies. According to a report from the Kenan Institute at the University of North Carolina’s Business School, these cities are experiencing significant GDP growth year-over-year. Here’s a look at the top ten fastest-growing cities in terms of GDP growth in 2022:

Rank	City	State	GDP Growth (2022)
#1	San Francisco/Bay Area	California	4.8%
#2	Austin	Texas	4.3%
#3	Seattle	Washington	3.5%
#4	Raleigh/Durham	North Carolina	3.4%
#5	Dallas	Texas	3.1%
#6	Denver	Colorado	3.0%
#7	Salt Lake City	Utah	2.8%
#8	Charlotte	North Carolina	2.5%
#9	New Orleans	Louisiana	2.4%
#10	Orlando	Florida	2.4%

San Francisco, Seattle, and Dallas appear on both the overall GDP size and growth lists. Dallas’ economy benefits significantly from its growing healthcare industry and the presence of large corporations like AT&T, CBRE Group, and Texas Instruments.

The Rise of Tech Hubs

Many of the fastest-growing cities are becoming prominent tech hubs. For instance, Austin, Texas, often referred to as “Silicon Hills,” is attracting major tech companies like Apple, Google, and Tesla. This influx of tech giants is driving significant economic growth and transforming the city’s landscape.

The Impact of Remote Work

The shift towards remote work has allowed people to live in more affordable cities without sacrificing job opportunities. Cities like Salt Lake City and Denver have seen a surge in population and economic activity as remote workers seek better quality of life and lower living costs.

Investment in Infrastructure

Investment in infrastructure is a key driver of economic growth in many fast-growing cities. For example, Denver’s ongoing development of public transportation and infrastructure projects has enhanced connectivity and attracted businesses and residents alike.

Diversification of Economies

Cities like Raleigh/Durham and Charlotte in North Carolina are diversifying their economies beyond traditional industries. Raleigh/Durham is known for its Research Triangle Park, a major center for research and innovation, while Charlotte is a growing financial hub.

Tourism and Leisure

Cities such as Orlando and New Orleans are leveraging their tourism and hospitality industries to drive economic growth. Orlando’s theme parks and entertainment industry, along with New Orleans’ vibrant cultural scene and festivals, contribute significantly to their local economies.

Green and Sustainable Initiatives

Many fast-growing cities are also focusing on green and sustainable initiatives. Seattle, for instance, is known for its commitment to sustainability, with numerous green buildings, extensive public transit, and renewable energy projects.

Education and Talent Attraction

High-quality educational institutions are another factor in the growth of these cities. Cities like Boston and San Francisco benefit from being home to top universities and research institutions, which attract talent and foster innovation.

Future Outlook

Looking ahead, these cities are poised to continue their growth trajectories. Factors such as technological advancements, demographic shifts, and policy initiatives will play a crucial role in shaping their economic futures.

Comparative Growth Rates

Comparing the growth rates of these cities with national averages provides context to their rapid expansion. For instance, while the national GDP growth rate may be around 2%, cities like San Francisco and Austin are growing at double that rate, highlighting their exceptional economic performance.

Quality of Life

Quality of life is a significant draw for many of these fast-growing cities. Factors such as lower cost of living, access to outdoor activities, and cultural amenities make cities like Denver and Salt Lake City attractive to new residents and businesses.