RALEIGH, N.C. (WTVD) — Raleigh has been recognized as the top-performing large city in the U.S. for 2025, according to a new economic report from the Milken Institute. This marks an improvement from last year’s ranking of #2, solidifying Raleigh’s reputation as a leading hub for growth and development.
The report, however, also brought attention to the challenges that come with rapid expansion, particularly in the housing sector. Mayor Janet Cowell acknowledged the pressure that the influx of people and investment is placing on the city’s affordability and housing market.
“We’ve got a lot of people moving here. We have a lot of people investing here. And those are all good things. But it puts pressure on affordability, housing prices, et cetera,” said Cowell. The report emphasizes that Raleigh’s success in managing growth while maintaining affordable living will be critical for its continued success.
Cowell described the city’s approach to managing this growth as a delicate balancing act. She explained that Raleigh must keep tax rates competitive for businesses while ensuring the city can provide adequate housing and services for its expanding population.
“Trying to keep affordability, but also provide and invest in services. So you’ve just got to be really smart about your decisions,” Cowell added.
Kyle Touchstone, Director of Raleigh’s Economic Development Office, echoed Cowell’s sentiment, acknowledging the ongoing housing challenges but pointing to the city’s competitive housing market. He remains optimistic, noting that new developments, particularly in downtown Raleigh, will bring more multifamily housing units that could help ease some affordability concerns.
“If you look at the developments that are occurring, especially multifamily developments that are occurring in downtown Raleigh, the number of units that are coming online will help support and offset some of those affordability issues,” said Touchstone.
However, housing advocates like Denzel Burnside, head of the newly-formed North Carolina Housing Table, emphasize the real-world impacts of the housing shortage. Burnside highlighted the struggles of essential workers, who often commute from neighboring counties due to the lack of affordable housing within the city limits.
“I meet folks all the time who are doing the most essential work, who are staying two counties away, you know, where the Johnson or Chatham [counties], driving into Wake County to be able to provide the services that we need to sustain our community,” Burnside said.
Despite the ongoing challenges, city leaders are committed to finding solutions. With more housing units in the pipeline and efforts underway to explore new ways to subsidize housing options, Raleigh remains focused on meeting the demands of its growing population.
“We’ve got the workforce, we’ve got people moving in and people want those opportunities. Growing smart is the biggest demand,” said Mayor Cowell.
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