With an economy that continues to prosper, Austin has topped a new list of the best large American cities for economic growth in 2025.

CoworkingCafe's study, "Rising Powerhouses: The Cities Making America’s Economic Future," compared economic data across 269 U.S. cities from 2019-2023. Cities were then sorted into three categories: Large cities with populations greater than 500,000 residents; midsize cities with populations between 250,000-500,000 residents; and small cities with fewer than 250,000 residents.

Austin soared to the No. 1 spot among the biggest U.S. cities in 2025 after ranking No. 5 in last year's report.

According to CoworkingCafe, Austin is "a clear leader" in GDP (gross domestic product) and broad-based growth.

"Austin claims the top spot with 61 points, driven by a remarkable 51 percent surge in its gross domestic product fueled by rapid job creation in tech, manufacturing and professional services," the report's author wrote. "The city also saw a 12 percent increase in housing stock, meaning more residential units were built to meet its growing population, as well as a 4 percent rise in educational attainment, which reflects a larger share of residents with college degrees or higher."

The Texas capital's flourishing economy is further spurred by a 33 percent hike in residents' median income over the last five years, and a 71 percent increase in new business applications.

The report also adds that it's not just Austin's major tech companies that are leading this boom. The city's artistic and creative fields (like the local music and film industries) and its award-winning educational institutions also added a significant impact to the city's GDP in 2023. In a January 2025 report on the Austin metro's economy, Opportunity Austin found the regional GDP generated $248 billion in 2023.

"While some cooling is evident in big tech hiring and housing demand, Austin’s multi-sector growth makes it the undisputed leader," the report said.

The North Austin suburb Round Rock also earned a spot in the report's list of the best small cities for economic growth. Round Rock ranked 14th nationally, with business applications soaring 81 percent from 2019-2023. Round Rock's GDP grew at the same rate as Austin's, increasing by 51 percent.

Other economic boomtowns in Texas
Fort Worth ranked as the No. 5 best large U.S. city for economic growth in 2025, making it the only other Texas city to earn a top-10 spot in CoworkingCafe's report.

From 2019-2023, Fort Worth's GDP grew 36 percent, and its business applications also increased by 58 percent. Fort Worth residents' median income also jumped 25 percent during the five-year period

Farther down the national list of the best large economic boomtowns are Houston (No. 13), El Paso (No. 14), Dallas (No. 15), and San Antonio (No. 21).

In the midsize city category, six Texas cities made the cut: Irving (No. 15), Lubbock (No. 19), Laredo (No. 21), Corpus Christi (No. 23), Plano (No. 24), and Arlington (No. 27).

Out of the 188 U.S. cities that were analyzed in the small city ranking, 10 Texas cities (other than Round Rock) earned spots among the top 50: Lewisville (No. 11), Abilene (No. 18), Waco (No. 19), Denton (No. 23), McKinney (No. 29), Brownsville (No. 31), Frisco (No. 32), Wichita Falls (No. 34), League City (No. 45), and Mesquite (No. 46).

The top 10 best large economic boomtowns in America in 2025 are:

• No. 1 – Austin, Texas
• No. 2 – Sacramento, California
• No. 3 – Jacksonville, Florida
• No. 4 – Mesa, Arizona
• No. 5 – Fort Worth, Texas
• No. 6 – Fresno, California
• No. 7 – Phoenix, Arizona
• No. 8 – Indianapolis, Indiana
• No. 9 –Albuquerque, New Mexico
• No. 10 – Charlotte, North Carolina