Austin Tops the Nation for Economic Growth
Central Texas continues to see remarkable growth, and Austin is leading the charge. According to a recent study by Coworking Cafe, Austin has officially been ranked the No. 1 large U.S. city for economic growth - a testament to its thriving job market, innovative industries, and expanding population.
The study analyzed small, mid-sized, and large cities across the country using data from 2019 to 2023. To determine economic momentum, researchers evaluated 11 key factors, including GDP growth, job creation, housing development, export strength, and infrastructure expansion. Austin earned 61 points overall, standing out as a city with a well-rounded mix of productivity, investment, and employment growth.
Record-Breaking GDP and Housing Growth
Austin recorded a 51% GDP growth over the past four years, driven largely by rapid job creation in technology, manufacturing, and professional services. The city also ranked second nationwide in housing growth, with a 12% increase in housing stock - evidence of ongoing efforts to meet rising demand as more people relocate to the region.
A Highly Educated Workforce
The city’s talent pool continues to impress, with a 4% increase in educational attainment, reflecting a larger share of residents holding college degrees or higher. Despite Austin’s reputation for a laid-back lifestyle, the study also revealed a 1% uptick in employment, the third-highest among large U.S. cities during the study period.
Business Boom and Rising Incomes
Austin’s business sector is another standout, with a 71% jump in new business applications, placing it fifth in the nation. Median earnings also rose 33%, reaching $54,283, making Austin one of the top seven cities for income growth.
The study credited Austin’s success to its diverse and resilient economy. Anchored by powerhouse sectors like tech (Dell, Apple, Oracle), government (as Texas’ capital), education (University of Texas), and creative industries (music, film, and gaming), Austin’s regional GDP surpassed $248 billion in 2023. Major initiatives like Project Connect, a voter-approved public transit overhaul, further showcase the city’s commitment to long-term infrastructure investments.
While growth in areas like tech hiring and housing demand has shown signs of cooling, Austin’s multi-sector strength keeps it firmly at the top of the list for economic expansion.
Other Texas Cities on the Rise
Austin wasn’t the only Texas city to make the top five. Fort Worth also stood out, ranking No. 5 among large U.S. cities for economic growth. The North Texas city earned recognition for its impressive 9% increase in educational attainment and 8.3% population growth over the same period.
Beth Perkins is proud to share this story, originally reported by Cristela Jones for MSN News.
