Phoenix metro dominates economic growth rankings for top 10 cities nationwide

By Angela Gonzales

Eight cities in metro Phoenix are among the top 10 municipalities nationwide with the strongest economic growth.

An Aug. 20 study released by Coworking Cafe shows the Valley saw an incomparable surge in economic growth between 2019 and 2023, with eight locations in the top 10 across three population sizes.

During that time, the metro had a 25.8% increase in roadway miles, GDP grew by 42% while business applications saw a 61% growth, according to the "Rising Powerhouses: The Cities Making America's Economic Future" study.

"That is a really impressive showing for many of our Valley cities," said Danny Court, principal and senior economist for Elliott D. Pollack & Co.

"Arizona and Greater Phoenix have been on an impressive, multi-year run for economic development success, due in part to our natural environment and business friendly tax and regulatory environment," Court said. "But also many accolades should go to our state and regional economic development agencies that were empowered by the Legislature to recruit and retain high value industries following the Great Recession. And it is making a difference across numerous communities as the results show. We are creating great jobs and providing housing for all of the new population choosing our state. A pro growth attitude pays off."

Meanwhile, the runway for more economic development in the region is getting longer, as the Arizona Commerce Authority reports that more than 400 companies are considering relocation or expansion in the state.

Mesa tops among large cities
Of the largest cities in the nation, Mesa took fourth spot.

The city saw a 38% growth for median earnings between 2019 and 2023 — the second highest in the nation — now standing at $43,958.

Known for many years as a bedroom community, Mesa's employment rate grew by 1% during that same period, placing the city third for this metric, while the 9% drop in crime places Mesa eighth among large cities.

The 5% increase in housing stock puts Mesa ninth on the national list.

"I believe it was former Mesa Mayor Scott Smith who used to joke that Mesa was the biggest city you’ve never heard of," Court said. "But I’m not surprised at the rankings."

Jaye O'Donnell, economic development director for Mesa, said the report reflects what city officials have been seeing in positive productivity, jobs, housing, exports and infrastructure.

"Major investments in Mesa from Apple, Meta, Amazon, Google, and other advanced manufacturers such as Magna International, JX Advanced Materials, Super Radiator Coils, and Apex Power Conversion are building a new, high tech, diversified economy, " O'Donnell said.

At the same time, Mesa Gateway Airport has seen tremendous investment and expansion, boosting its capacity to serve more passengers while attracting world-class companies such as Gulfstream, Virgin Galactic, and XNRGY, he said.

"In Downtown Mesa, our Arts and Innovation District is anchored by ASU’s MIX Center, the LaunchPoint technology incubator, and Mesa Business Builder @ The Studios, together transforming entrepreneurship into quality jobs for our residents, creating this powerful ecosystem for entrepreneurs, and growing small businesses," O'Donnell said.

Right behind Mesa was Phoenix, which ranked seventh overall among large U.S. cities.

Phoenix showed a 20% drop in crime, placing the city fourth for this particular metric. Employment grew by 1% in Phoenix, while median earnings saw a 34% increase, reaching $43,488 during the 2019-2023 study period.

Gilbert tops all US mid-sized cities
Looking at mid-sized cities, the Town of Gilbert was No. 1 among all similar-sized cities nationwide.

The town showed a 2% growth in employment rate, a 1% drop in unemployment rate and 16% more housing units added between 2019 and 2023 — taking the second spot for these metrics.

In addition, educational attainment grew by 13%, placing the town third, while population increased by 12.8%, ranking fourth. The 32% growth in median earnings brought the median to $59,603 while placing the city in the seventh spot for this growth.

"We appreciate Gilbert's inclusion in this study as it reflects our commitment to creating an environment where businesses and residents can thrive," said Dan Henderson, the Town of Gilbert’s director of economic development. "Our diverse economy, educated workforce, and strategic infrastructure investments will continue to position Gilbert as one of Arizona's premier destinations for entrepreneurship and innovation."

From 2014-2023, Gilbert experienced a 27% increase in total jobs while facilitating over $2.3 billion in new capital investment and more than 23,000 new or retained positions. Nearly 50% of residents age 25 and older hold bachelor's degrees, significantly above the national average of 36.8%.

Major infrastructure investments such as The Ranch, a 300-acre mixed-use development approved in August, will deliver 3 million square feet of new industrial employment space. The town is also revitalizing Northwest Gilbert's employment corridor and the Heritage District.

Also among mid-sized U.S. cities, Chandler was ranked at No. 5.

The 13% growth in educational attainment and the 14% more housing units added, place Chandler fourth for these metrics.

The city saw an impressive drop of 24% in crime between 2019-2023, ranking fifth for this metric.

Small cities: Goodyear is tops in US
Meanwhile, Goodyear took the crown among small cities nationwide.

Goodyear took several first spots among key metrics, including a 32% increase in educational attainment, a 29.2% growth in population and 38% more housing units added between 2019-2023.

The 1% increase in employment rate placed the city fourth, while the 30% growth in median income brought the income to $50,209 while placing the city 17th for growth.

Surprise ranked fourth overall among small U.S. cities.

Surprise is ranked second for the employment rate metric, which saw a 3% increase, and the unemployment rate drop of 2%.

Also of note was Surprise's population growth of 12.3% (ranking 18th), the addition of 7% housing units (16th spot) and the median income increase of 28% (19th spot) reaching $48,225.

"Though it still lags slightly in education, Surprise is a textbook case of rapid, inclusive development," according to the Coworking Cafe report.

Rounding out the small cities list was Peoria, taking the eighth spot nationwide.

The unemployment rate drop of 2% placed Peoria second for this metric, while the addition of 19% housing units ranked the city sixth. There was an increase of 18% in educational attainment, scoring seventh spot for this metric.

The 13.5% population increase got Peoria on the 11th spot, while the 29% median earnings increase got the city to $51,465 and placed it 18th among small cities.

Final Thoughts
Metro Phoenix continues to shine as one of the fastest-growing economic hubs in the U.S., with eight Valley cities landing in the nation’s top 10 for growth. From Mesa’s rise as a large-city powerhouse to Gilbert leading mid-sized cities and Goodyear topping small cities, the data highlights how infrastructure investment, job creation, and population growth are transforming the region. With major employers expanding and more companies considering relocation, the Valley’s pro-growth environment positions it as a key driver of America’s economic future.