North Carolina Ranks No. 1 in CNBC’s 2026 State Economies

CRE Powers Shift as States Vie for Investment

States are doubling down on attracting business in 2026, aiming to capitalize on a US economy that’s steered clear of recession threats—at least for now. According to CNBC’s America’s Top States for Business study, economic strength is now central to state-level marketing, second only to infrastructure. The rankings, which weigh factors from GDP growth to job creation and fiscal resilience, show a new class of economic front-runners.

CRE investors and operators are taking note as Sun Belt and lower-tax states surge, propelled by robust fundamentals. With the ‘Economy’ category now accounting for 16.6% of CNBC’s total state competitiveness score, the findings paint a data-rich map for future capital allocation.

The End of One-Size-Fits-All Growth

Growth looks different across states in 2026. North Carolina stands out with balanced gains across several metrics. The state posted 2.7% GDP growth and strong business formation. It also attracted foreign investment despite political budget gridlock.

Texas and California continue to dominate the national economy. Both states benefit from corporate relocations and AI expansion. However, housing weakness and revenue volatility are raising concerns.

Meanwhile, Wisconsin and South Carolina are growing beyond their major metros. Secondary markets are attracting more college-educated workers through strong in-migration trends.

For CRE, these shifts are creating new development corridors and capital flows. Advanced manufacturing is driving growth in Iowa. Aerospace continues to expand in Florida. AI investment is reshaping markets in California and New York. These industries are influencing office, industrial, and multifamily demand.

The Details

CNBC’s 2026 rankings of state economies, scored out of 415 points, include:

1. North Carolina (317, A+)
   Real GDP reached $682.4B, up 2.7%. Foreign direct investment totaled $5.26B. Major headquarters include Bank of America and Duke Energy.
2. Texas (302, A)
   Real GDP reached $2.27T, up 2.5%. Foreign direct investment totaled $22.1B. Major headquarters include Oracle, Tesla, and AT&T.
3. California (295, A)
   Real GDP reached $3.38T, up 2.1%. Foreign direct investment totaled $13.4B. Major headquarters include Disney, Apple, and Nvidia.
4. New York (289, A–)
   Real GDP reached $1.89T, up 2.9%. Foreign direct investment totaled $3.3B.
5. Washington (287, A–)
   Real GDP reached $717.5B, up 2.2%. Major headquarters include Amazon, Microsoft, and Costco.
6. South Carolina (286, A–)
   Real GDP reached $286.8B, up 3.1%. The state ranked third nationally for net in-migration.
7. Delaware (284, A–)
   Real GDP reached $87.3B, up 2.3%. Federal funds account for only 22.5% of the state budget.
8. Minnesota (278, A–)
   Real GDP reached $405.8B, up 1.6%.
9. Ohio (275, B+)
   Real GDP reached $734.4B, up 1.7%. Foreign direct investment totaled $7.8B.
10. Wisconsin (258, B)
    Real GDP reached $359.6B, up 1.5%.

Top-performing states benefit from strong corporate clusters and healthy credit ratings. They also maintain strong international trade ties.

Texas and California continue to lead in foreign investment and relocations. Meanwhile, North Carolina is outpacing many legacy powerhouses in job and business growth.

Regional Competition Heats Up

The 2026 rankings reveal major regional differences. Southern and Western states continue strengthening their national positions. Strong labor markets are attracting both companies and investors.

North Carolina achieved the highest economic score despite a year-long budget impasse. The state also led the nation in economic growth and business formation.

Texas posted $22.1B in foreign direct investment during 2024. That figure ranked second nationally behind Georgia, according to Commerce Department data. The state’s strong consumer activity has also supported job growth and business expansion across major metros.

For CRE, this investment supports industrial and office demand pipelines. However, the state’s housing market continues to slow.

California also benefited from AI growth and stock market gains. The state generated a $25B tax windfall as a result. Still, analysts warn that future downturns could expose revenue volatility.

Wisconsin and Ohio are building momentum more quietly. Business formation and foreign investment continue to rise. Those trends support growth across urban and exurban CRE markets.

Why It Matters

Recent forecasts from Cushman & Wakefield mirror these regional shifts. Institutional investors continue chasing demographic growth and regional momentum.

North Carolina offers a particularly attractive backdrop for development. The state combines a Moody’s Aaa rating with 2.7% GDP growth. Those strengths support office, industrial, and life sciences projects around Raleigh and Charlotte.

Texas and California remain major destinations for corporate relocations. However, both states face mounting affordability pressures.

California also carries the nation’s highest unemployment rate at 5.3%, according to May 2026 labor data.

New York and Washington continue posting strong GDP gains. Financial services, AI, and technology hiring are driving much of that growth. Yet both states continue facing out-migration pressures and limited housing supply.

For CRE, the trend remains straightforward. Capital and construction continue following population and job growth across the South and West.

Whether this momentum lasts will depend on fiscal resilience and sustained demand. Demand for logistics, goods movement, and commercial space remains critical if economic cycles weaken.

What’s Next

CRE professionals should treat these economies as long-term investment signals. Expect additional development across fast-growing Sun Belt metros.

Corporate headquarters activity should remain strong in Texas and North Carolina. Industrial corridors stretching from Georgia into the Midwest should attract more attention.

Federal funding, foreign investment, and migration trends are becoming more important. As a result, CRE investors must scrutinize fiscal stability and demographics more closely.

Sector diversification will also become increasingly important during the second half of the decade.