Austin, Texas, August 29, 2025
News Summary
Austin has achieved the top spot as the No. 1 large economic boomtown in America for 2025, as per CoworkingCafe’s study. The city’s economy has exhibited remarkable growth, marked by a 51% surge in GDP, a 71% increase in new business applications, and a significant rise in housing stock and median income. Despite some cooling indicators, the overall economic performance remains robust, driven by key sectors such as technology and manufacturing, indicating a promising future for the city.
Austin
Austin has been ranked as the No. 1 large economic boomtown in America for 2025, according to CoworkingCafe’s recent study, titled “Rising Powerhouses: The Cities Making America’s Economic Future.” The study evaluated economic data across 269 U.S. cities from 2019 to 2023, categorizing cities into large (population over 500,000), midsize (250,000-500,000), and small (under 250,000). From a previous fifth place ranking, Austin’s rise to the top position highlights its robust economic performance with a score of 61 points.
Austin experienced significant economic growth, with a 51% surge in its GDP, primarily due to rapid job creation in key sectors such as technology, manufacturing, and professional services. The city’s regional GDP reached $248 billion in 2023. Alongside this GDP growth, housing stock increased by 12% to accommodate a growing population, reflecting Austin’s expanding economic base. Educational attainment also saw improvements, with a 4% increase in residents holding college degrees or higher, and the median income for residents rose by 33% over the past five years.
The entrepreneurial climate in Austin has flourished as evidenced by the 71% increase in new business applications during the last five years. Contributions to GDP have not only come from major tech companies but also from the city’s thriving artistic and creative sectors, as well as local educational institutions.
Although some economic indicators, such as rising office vacancy rates which hit 22%, suggest cooling in big tech hiring and housing demand, Austin’s diversified multi-sector growth continues to fortify its economic standing. The city’s economic initiatives, driven by the Austin Economic Development Department, supported over 27,000 jobs and allocated $54 million in community investments in fiscal year 2024. Programs aimed at job training, such as the Austin Infrastructure Academy, have been established to prepare residents for careers in public infrastructure projects, benefiting a total of 286 residents, with 153 achieving self-sustaining wages post-training.
In a broader context, surrounding areas are also experiencing economic growth. The North Austin suburb of Round Rock ranked 14th among small cities, with an impressive 81% increase in business applications alongside a 51% GDP growth rate. Fort Worth emerged as the No. 5 large U.S. city for economic growth in 2025, being the only other Texas city in the top ten. Other Texas cities such as Houston, El Paso, Dallas, and San Antonio have also achieved notable economic growth.
In the midsize city category, six Texas cities made the list, with Irving taking the 15th spot. In the small city category, ten Texas cities ranked in the top 50, including Lewisville and Abilene among others. These statistics indicate a strong trend of economic vitality across Texas, marking a significant period of growth for various cities.
FAQ
What constitutes a “large” city in this study?
A “large” city is defined as having a population of over 500,000.
How much did Austin’s GDP increase over the past five years?
Austin’s GDP surged by 51% over the last five years.
What were the most significant sectors driving job creation in Austin?
The tech, manufacturing, and professional services sectors were the primary drivers of job creation.
What initiatives has the Austin Economic Development Department implemented?
The department has launched programs supporting job training, workforce development, and small business support.
| Statistic | Value |
|---|---|
| GDP Growth | 51% |
| New Business Applications Increase | 71% |
| Housing Stock Increase | 12% |
| Median Income Increase | 33% |
| Date/Time | Event | Status/Source |
|---|---|---|
| 2023 | Study released ranking Austin as the No. 1 boomtown | Complete |
| Fiscal Year 2024 | Austin Economic Development Department’s initiatives | Ongoing |
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Additional Resources
- CultureMap Austin
- Wikipedia: Austin, Texas
- Audacy News
- Google Search: Austin economic growth 2025
- Austin Monitor
- Google Scholar: Austin economic development
- KENS 5 News
- Encyclopedia Britannica: Texas economic growth
- Governing Magazine
- Google News: Texas cities growth
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