Job growth and housing affordability remain top drivers of economic performance in the rankings

Fayetteville–Springdale–Rogers, AR is named the best-performing large metropolitan area, according to the 2026 Milken Institute Best-Performing Cities (BPC) report, after consistently placing in the top 15 large cities every year since 2021. Among small cities, St. George, UT tops the index after finishing as the runner-up in last year’s rankings. Strong labor markets—characterized by remarkably steady growth—and growing high-tech sectors lifted both metro areas ahead of their peers to earn this distinction.

Published annually since 1999, the Best-Performing Cities index reflects cities’ effectiveness at leveraging their resources to promote economic growth and provide their residents with access to essential services and infrastructure. The index provides an impartial, holistic benchmark to evaluate US metropolitan areas based on job creation, wage growth, and the high-tech sector’s output growth, in addition to measures of access to economic opportunities, such as housing affordability and community resilience.

The 2026 index and rankings are primarily based on data from 2024 with short-term job growth measured from July 2024 to July 2025. In 2024, US real gross domestic product (GDP) grew by 2.8 percent. Despite this growth, cooling national labor market conditions have affected employment across the US. One-year and five-year job growth was slower compared to previous years' data, and the cost of living has increased across all metrics. With slowing employment growth and rising unemployment rates, affordability emerged as a key issue for US cities.

“Through our annual analysis, we track national and regional trends over time to identify policy choices and investments that most effectively strengthen economic opportunities for residents of a metropolitan area,” said Maggie Switek, PhD, senior director of research at the Milken Institute. “We hope that the index equips policymakers and local business leaders with evidence-based insights to guide long-term, equitable decisions that benefit all residents.”

Metro areas with the largest gains in ranking showed strong labor market performance. Although most metro areas (307 of 411) added jobs in 2024, this growth was concentrated in traditionally lower-paying sectors, such as education and health services, and construction. Within the same period, the three highest-paying industries (information, professional and business services, and financial activities) all lost jobs.

To attain the top ranking for large metropolitan areas, the Fayetteville–Springdale–Rogers metro area ranked 13th or higher in every labor market performance metric, making it one of the strongest labor markets in the nation. Additionally, the greater Fayetteville region excelled at providing affordable housing for its residents, ranking 15th among large cities in affordability. The metro area’s housing affordability has benefited from a booming construction sector, whose employment grew by almost 10 percent in 2024.

“In Fayetteville, we are intentional about investing in what makes our city thrive. We are focused on infrastructure, public services, vibrant public spaces, and innovative business development. This recognition highlights a community that believes in strategic investment, data-informed planning for growth, and opportunity for all, while contributing to the strength of Northwest Arkansas as a whole. We’re proud of the progress happening across our city and energized by what comes next,” said Fayetteville Mayor Molly Rawn.

Over the last five years, St. George, UT has recorded the fastest high-tech expansion of all small metro areas, with a real GDP growth of 106.3 percent helping lead it to the top spot for small metropolitan areas. Job growth has been primarily driven by the expansion of the education and health services sector, which accounts for 17.1 percent of total employment in the metro area.

“Being ranked the number one small city in America confirms what we have long known in St. George. With more than 300 days of sunshine, a strong pro-business environment, and access to world-class outdoor amenities, our community offers an unmatched quality of life and opportunity,” said St. George Mayor Jimmie Hughes. “Built on a pioneer spirit that values hard work and innovation, St. George is proud to be recognized by respected institutions like the Milken Institute as a place where businesses and people can thrive.”

Key findings from the 2026 Best-Performing Cities index:

• Fayetteville–Springdale–Rogers, AR takes the No. 1 ranking among large cities due to its strong labor market, growing high-tech sector, and affordable housing. Huntsville, AL; Charleston–North Charleston, SC; Boise City, ID; and Raleigh–Cary, NC (2025’s top large city) round out the top five.

• St. George, UT captures the No. 1 ranking among small cities due to its sustained year-over-year job growth and strong leisure and hospitality, and education and health services industries. St. George has consistently ranked in the top five among small cities every year since 2016. The rest of the top five metro areas include: Idaho Falls, ID; Kenosha, WI; Bend, OR; and Pocatello, ID.

• Springfield, IL saw the largest overall increase, rising 142 places to the 12th position among small cities, driven by robust labor market conditions. Baltimore–Columbia–Towson, MD and Hagerstown–Martinsburg, MD–WV tied for the biggest increase in the large cities ranking, each rising 84 places to spots 87 and 64, respectively.

• Washington, DC–MD experienced the most dramatic decline, dropping 118 spots to its current 180th position. The large metro areas with the steepest declines experienced a relative drop in every single labor market indicator, with the largest declines in short-term and one-year job growth.

“Though their scale and geography differ, the greater Fayetteville metro area and St. George illustrate that a balanced approach to growth drives economic performance,” said Switek. “The cooling labor market conditions and rising costs across the US highlight the critical importance of affordability for metropolitan residents. This year’s rankings emphasize how thoughtful, inclusive policies and economic prosperity reinforce each other across diverse metro areas.”

How We Evaluate Cities

The index uses data from the US Census Bureau, Bureau of Labor Statistics, and the Bureau of Economic Analysis to measure the economic performance of 206 large cities (defined as a population higher than 275,000) and 205 small cities. The cities are ranked based on three primary performance factors: labor market conditions (job growth and wage growth); high-tech impact (technology output and concentration); and access to economic opportunities (housing affordability, inclusivity, and resilience).

Large and small cities are classified into five tiers based on their BPC index scores, with Tier 1 being the top-ranked cities and Tier 5 being the bottom-ranked cities. Twelve cities reached the Tier 1 threshold for large cities and 10 for small. For 2026, most Tier 1 large cities (8 out of 12) are in the Southern region of the US. Six out of 10 of the Tier 1 small cities are located in the Mountain Division. The Best-Performing Cities interactive map allows users to compare cities' performance relative to their peers, based on city size and ranking tier.

2026 Milken Institute Best-Performing Cities Index

LARGE US CITIES: TIER 1

Fayetteville–Springdale–Rogers, AR

Huntsville, AL

Charleston–North Charleston, SC

Boise City, ID

Raleigh–Cary, NC

Provo–Orem–Lehi, UT

Salt Lake City–Murray, UT

Orlando–Kissimmee–Sanford, FL

Austin–Round Rock–San Marcos, TX

Olympia–Lacey–Tumwater, WA

Wilmington, NC

Arlington–Alexandria–Reston, VA–WV

SMALL US CITIES: TIER 1

St. George, UT

Idaho Falls, ID

Kenosha, WI

Bend, OR

Pocatello, ID

Helena, MT

Coeur d’Alene, ID

Logan, UT–ID

Midland, TX

Auburn–Opelika, AL

About the Milken Institute

The Milken Institute is a nonprofit, nonpartisan think tank focused on accelerating measurable progress on the path to a meaningful life. With a focus on financial, physical, mental, and environmental health, we bring together the best ideas and innovative resourcing to develop blueprints for tackling some of our most critical global issues through the lens of what’s pressing now and what’s coming next. For more information, visit https://milkeninstitute.org/.

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