Raleigh area tops list of best-performing large metros in US, and that’s a challenge
Raleigh has topped an economic think tank’s list of best-performing cities in the United States for the first time in over a decade.
The Milken Institute’s annual list looks at 13 factors including economic opportunities, job and wage growth, labor market conditions and affordable housing. It defines the Raleigh metro area as the Raleigh metropolitan statistical area, which includes Wake, Johnston and Franklin counties.
“Raleigh consistently tops ‘best-of’ lists for good reasons,” Raleigh Mayor Janet Cowell said in a news release. “Our highly educated pipeline of talent, innovative startups, and low cost of doing business attracts high-tech firms, advanced manufacturing, and corporate headquarters from all over the world. Our parks and greenways, our vibrant downtown, and our diverse music, art, and restaurant scene offer plenty of options to enjoy time with family and friends outside of work.”
The large metro area includes areas with populations larger than 275,000, and only three of the top 10 metro areas included populations that exceeds 1 million. Raleigh is one of those metro areas.
“Raleigh has been a popular destination among domestic migrants, resulting in rapid population growth over the past decade,” according to the report. “Despite this, the metro has been able to maintain relatively affordable housing conditions, which is a rare accomplishment for a city of its size. This has been partially due to Raleigh’s boom in the construction sector, which grew by almost 25 percent (in terms of employment) over the past five years. Even with this, however, the metro’s housing prices have risen at a rate that exceeds the national average since the pandemic.”
Wake County gains 51 new residents a day with 12 of those residents ending up in the city of Raleigh. But those residents from more expensive parts of the United States have contributed to the city’s affordable housing crisis and caused rapid gentrification in some parts of the city.
The North Carolina Housing Coalition estimates that 27% of Wake County households are cost-burdened, meaning they spend over 30% of their income on rent or mortgage and utilities. Among just renters, nearly half are spending over that percentage.
This story was originally published January 15, 2025 at 9:08 AM.
