August 27, 2025

Phoenix Ranks Fourth Fastest-Growing City in the U.S.

News Summary

A new report by Coworking Cafe has identified Phoenix, Arizona, as the fourth fastest-growing city in the United States based on economic growth from 2019 to 2023. The study highlights significant capital investments, robust infrastructure development, and a notable increase in entrepreneurial activity, despite ongoing housing challenges. While job growth is expected to improve by late 2025, the Valley’s economy remains resilient amidst rising housing costs and other uncertainties. Overall, the report indicates a positive economic outlook for the region, propelled by diverse sector growth.

Phoenix, Arizona, has been recognized as the fourth fastest-growing city in the United States for economic growth, according to a recent study conducted by Coworking Cafe. The study analyzed economic trends from 2019 to 2023, spotlighting two cities from the Valley among the top ten performers nationwide.

The findings point to significant capital investment as a primary driver behind Phoenix’s economic expansion. The Arizona Chamber of Commerce and Industry emphasizes the thriving nature of the Valley’s economy, which has seen balanced growth across several sectors, including housing, trade, and employment. Despite this upbeat news, job growth has lagged behind expectations, leading to forecasts of improvement in job reports anticipated in late 2025 and early 2026.

Infrastructure development remains a cornerstone of Phoenix’s appeal, with enhancements in roadways, energy, and water systems attracting new residents to the area. From 2019 to 2023, Metro Phoenix saw a remarkable 25.8% increase in roadway miles, correlating with a robust 42% growth in GDP. Additionally, the region experienced a 61% surge in business applications during the same timeframe, highlighting an uptick in entrepreneurial activity.

Despite these positive indicators, challenges persist in the Valley’s housing market. The demand for housing continues to outstrip supply, leading experts to suggest that accelerated home construction is necessary. Local government zoning processes have reportedly slowed housing development, hinting that legislative action may be required to address this issue.

The state and local economies show resilience in facing challenges such as rising housing costs and elevated interest rates. Recent data indicates that Arizona’s unemployment rate is expected to decrease to 3.6% in 2024, down from 3.9% in 2023. This anticipated decline reflects an expected boost in job growth, fortifying the economic outlook for the region.

Moreover, inflation in Phoenix has decreased and is currently below the national average, with the consumer price index increasing only 1.6% year-over-year as of October 2024 compared to a national figure of 2.6%. This favorable inflation rate, alongside robust personal income growth, contributes to an overall impression of economic stability.

Outlook Amid Uncertainties

Although the economic indicators paint a positive picture, there is underlying uncertainty regarding future forecasts. Potential political changes could impact tariffs and immigration policies, which may subsequently affect various sectors of the economy.

Conclusion

Phoenix’s ranking as the fourth fastest-growing city in the nation is attributed to its thriving capital investment and infrastructure resilience. While job growth shows signs of improvement on the horizon, ongoing issues such as housing shortages and external economic factors may influence the region’s overall economic trajectory.

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Additional Resources

Author: STAFF HERE PHOENIX WRITER

PHOENIX STAFF WRITER The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.

STAFF HERE PHOENIX WRITER

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