2025 Milken Institute Best Performing Cities Overview

Milken Institute Ranking Overview

• The Milken Institute released its annual ranking of 403 U.S. metropolitan areas, evaluating labor market conditions alongside access to economic opportunities and community well-being.
• Raleigh, NC ranked as the number one best-performing large metropolitan area in the United States.
• Ogden-Clearfield, UT ranked as the number two best-performing large metropolitan area.
• The ranking methodology balances rigorous labor market data with qualitative assessments of community vigor and quality of life.

Raleigh, NC: Strategic Drivers of Success

• Industrial Diversity: The region leverages a mix of tech, life sciences, clean tech, medical, and education sectors, supported by a dense concentration of universities (NC State, Duke, UNC).
• Talent Retention Strategy: Long-term investment in green infrastructure, including one of the first U.S. greenway networks (200+ miles) and extensive parks, aids in retaining college graduates.
• Startup Ecosystem: Raleigh's startup rate exceeds the national average, driven by a two-pronged approach:
  • City-wide recruitment via the Chamber of Commerce for professional services and defense firms near Fort Liberty.
  • Localized small business development initiatives focusing on minority, Hispanic, and immigrant entrepreneurs (e.g., Native American and Asian communities).
• Educational Infrastructure: Beyond four-year universities, Wake Tech Community College serves 70,000 students, offering free training in high-demand trades like nursing, automotive mechanics, plumbing, and electrical work.
• Upcoming Priorities (2025):
  • Advancing housing projects by removing zoning obstacles for multiplexes and accessory dwelling units.
  • Addressing homelessness and mental health crises through alternative response units rather than purely police-led interventions.
  • Hiring a new police chief to overhaul public safety protocols.
• Challenges: The city faces political pushback and lawsuits regarding zoning changes intended to diversify housing stock and increase affordability.
• Demographic Trends: Significant influx of international migrants, with specific pockets like Morrisville (60% Asian) and Apex (20% Asian) driving cultural and economic vitality.

Ogden-Clearfield, UT: Cultural and Sectoral Foundations

• Defining Cultural Ethos: Success is attributed to the "Utah Way," a collaborative spirit of abundance and shared responsibility rooted in the state's pioneer history, transcending generations.
• Core Economic Sector: The defense and aerospace industry, anchored by Hill Air Force Base, serves as the primary economic driver.
• Sector Synergy: Defense needs catalyzed growth in advanced manufacturing (e.g., carbon fiber), which also supports outdoor recreation products (skiing, cycling) and creates a diversified industrial base.
• Income Distribution: Despite high growth, the MSA ranks number one for equitable income distribution among large U.S. cities, maintained by a cultural focus on lifting all community members simultaneously.
• Housing Philosophy: Leaders advocate for a "housing lifecycle" approach, ensuring availability of starter homes, family homes, downsizing units, and senior living to accommodate residents at all life stages.
• Upcoming Priorities (2025):
  • Setting a collaborative table to align community anchors on metrics that drive local life quality, not just economic output.
  • Accelerating the 2034 Winter Olympics preparation to leverage global attention for infrastructure and community investment.
  • Focusing on "social infrastructure" and human capital to drive physical development.
• Challenges:
  • Managing growth in neighboring MSA cities without overwhelming rural-to-urban transition zones with excessive density.
  • Addressing workforce housing gaps and the critical need for affordable childcare to support defense and manufacturing sectors.

Shared Themes and Community Dynamics

• Open Spaces as Economic Drivers: Both mayors emphasize that parks and recreational access are critical for quality of life and economic vitality.
  • Raleigh utilizes public-private partnerships (e.g., Dix Park Conservancy) to raise funds and manage flexible programming, raising $40 million in three years.
  • Ogden leverages its "mountain-to-metro" lifestyle, with immediate access to mountains, as a primary quality-of-life asset attracting talent and hosting the 2034 Olympics.
• Collaborative Governance:
  • Ogden operates as a unified MSA hub where the city core collaborates with surrounding counties and cities to avoid internal competition.
  • Raleigh fosters a welcoming culture among a highly diverse population, actively integrating international communities through cultural festivals and civic engagement.
• Workforce Development: Both cities are shifting focus from mere recruitment to upskilling existing residents through high-tech certifications and vocational training (e.g., Ogden's OTEC high school programs).
• Housing Affordability: Both administrations recognize housing supply as the central obstacle to equitable growth, actively fighting restrictive zoning laws to increase density and variety in housing types.
• Inequality Mitigation: While Raleigh faces challenges with displacement in historically Black neighborhoods, both leaders emphasize that economic growth must be paired with policies that prevent the displacement of existing residents.