Gallery: Annual index ranks America’s top performing cities; most are in the West

Starting with the pandemic and the economic uncertainty that came along with it, it’s been a difficult few years for cities across the United States. As a testament to the resiliency and commitment of public administrators, American cities continue to thrive—with many of the fastest growing communities located in the West, according to the Milken Institute’s 2023 Best-Performing Cities Index.

“This year’s report shows that U.S. cities continue to drive the nation’s growth despite the pressures created by Covid-19,” said Maggie Switek, Ph.D., director of regional economics in the Milken Institute’s Research Department. “Three years after the onset of the pandemic, cities are still the main centers of the nation’s economic activity. In 2021, the metropolitan areas included in the BPC rankings generated 89% of the U.S. gross domestic product and were home to 86.3% of the country’s population.”

The ranking was made based primarily on 2021 data, documenting the first full year of recovery following the pandemic’s onset. Metrics used to create the index include housing affordability, broadband access, wage and job growth, and tech impact, among others.

The index categorizes cities into five tiers based on their economic output, according to a brief about the findings. Most of the top-performing Tier 1 cities (16 in total: eight large, eight small) are located in six states: Idaho, Utah, Arizona, Texas, Florida, and North Carolina. The remaining (eight: two large, six small) Tier 1 cities are spread across several states in the West, Midwest, and Southeast. 

Provo-Orem, Utah, retained its top ranking for the third year in a row. The brief notes it’s become an “established hub for technology startups.” The metro region has maintained high employment and wage growth over the lasst five years, in part due to rapid expansion of the region’s tech market.

“No place on earth is as dear to me as Provo. It’s where I was born, where I grew up, and where my husband and I chose to raise our kids. I am proud to see that the world is taking note of this remarkable place, where the majesty of nature surrounds a thriving hub of tech activity and educational opportunity, creating unparalleled quality of life,” said Provo Utah Mayor Michelle Kaufusi about the placement.

The top 10 best performing large cities can be found in the gallery above. Idaho Falls, Idaho ranked first among small cities, followed by Logan, Utah-Idaho, St. George, Utah, The Villages, Fla., Bend-Redmond, Ore., Punta Gorda, Fla., Coeur d’Alene, Idaho, Missoula, Mt., Sioux Falls, Idaho, and Gainsville, Ga. Visit the Milken Institute’s website for the complete index.