CNBC’s 20th annual America’s Top States for Business study ranked every state across 138 measures, then broke the results into categories such as economy, workforce, infrastructure, and quality of life. In the economy-only ranking published July 13, North Carolina finished first and Texas placed second. That is different from the broader business ranking released July 9, where Ohio took the top spot, followed by North Carolina, Virginia, Texas, and Minnesota. For investors and households, the split matters: a state can produce rapid growth and attract capital while still falling short on affordability, infrastructure, or everyday livability.
North Carolina Takes the Top Spot
North Carolina earned the top economy score with a mix of steady growth, strong credit, and continued population gains. Its inflation-adjusted GDP reached $682.4 billion in 2025 and grew 2.7%, while Moody’s maintained the state’s top-tier Aaa rating. The state also gained about 84,100 residents through net domestic migration from mid-2024 to mid-2025, more than any other state. Gov. Josh Stein signed a $34 billion budget on July 7, ending a long period without a full spending plan. Charlotte’s banking sector, Duke Energy, Labcorp, manufacturing, and the Research Triangle give the economy several durable engines.
Welcome to North Carolina Sign
Texas Remains an Economic Powerhouse
Texas again showed why companies and workers continue moving there. The state’s inflation-adjusted GDP reached roughly $2.27 trillion in 2025, up 2.5%, while CNBC cited $22.1 billion in foreign direct investment during 2024. Oracle, Tesla, and AT&T are among the major companies headquartered in the state, and the technology and manufacturing pipeline keeps expanding. On June 16, Nvidia CEO Jensen Huang joined Coherent executives at the groundbreaking for an expanded semiconductor and optical-components facility in Sherman. Projects like that reinforce Texas’s appeal as a center for AI infrastructure, energy, logistics, and advanced manufacturing.
Texas Has Real Risks, Too
The Texas growth story does not erase the risks facing homeowners and businesses. Zillow reported that average home values were down 1.9% from a year earlier in July 2026, while Texas A&M’s Real Estate Research Center described softer demand, rising inventory, and continued price pressure. Foreclosure activity has also increased from the unusually low levels seen earlier in the decade. Trade exposure is another concern because tariffs imposed under Sections 232 and 301 remained in force after the Supreme Court struck down emergency-power tariffs in February. CNBC ranked Texas 49th for quality of life, helping push it down to fourth overall despite its No. 2 economy.
The Rest of the Top 10
California placed third in CNBC’s economy ranking. Its inflation-adjusted GDP was about $3.38 trillion in 2025, while nominal output reached roughly $4.25 trillion, the largest of any state. California also carried a 5.3% unemployment rate and a state budget heavily exposed to volatile capital-gains revenue; its Legislative Analyst’s Office warned against treating a projected tax windfall as permanent. New York ranked fourth after posting 2.9% real GDP growth, though domestic out-migration remains a concern. Washington, South Carolina, Delaware, Minnesota, Ohio, and Wisconsin completed the top 10, with South Carolina tying Florida for the fastest 2025 growth at 3.1%.
What This Means for Your Money
These rankings are useful, but they are not a simple instruction to buy property or stocks in the highest-scoring state. Texas offers job growth, no individual state income tax, and deep exposure to energy, technology, and manufacturing, but buyers must weigh property taxes, insurance, and a cooling housing market. North Carolina combines strong migration, finance, health care, and research-driven growth, though rapid expansion can raise housing and infrastructure costs. CNBC gave infrastructure nearly 18% of the total score in 2026, reflecting the power, water, transportation, and permitting demands of data centers and factories. For investors, the better lesson is to follow durable industries, not one headline ranking.
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