(Article originally posted via St George News – click here for original article)
ST. GEORGE —
St. George was ranked as the best-performing small metropolitan area in the United States by the Milken Institute’s “Best-Performing Cities 2026” report on Jan. 27.
This marks the first time the city has claimed the No. 1 position after finishing in the top five every year since 2016.
The ranking places St. George at the top of hundreds of small metros nationwide and reflects a decade of sustained economic performance measured through labor-market strength, industry growth and access to opportunity, according to the Milken Institute’s methodology, which evaluates 411 metropolitan areas using 13 economic metrics tied to short- and long-term trends.
Chad Thomas, the city’s economic development director, told St. George News the designation affirms years of strategic planning and investment.
“This is huge for the city of St George,” he said. “This is great for everything. One it reaffirms that what we’re doing is the right thing. We’ve long known that we’re very appreciative of our city council giving us the leeway and the latitude to do what we need to do as staff, and this just reaffirms that what we’re doing is working.”
L-R: St. George News anchor Monica McGlochlin speaks to Chad Thomas, St George’s economic development director, about the city being named the No. 1 “Best Performing City 2026” for a small metro area by the Milken Institute, St. George, Utah, Jan. 27, 2026.
Milken’s summary shows St. George climbed from second place last year to first this year among small metros. From 2019 to 2024, St. George recorded the second-highest job growth in the nation and the fastest-growing high-tech sector among small metropolitan areas. The city also ranks near the top nationally for five-year job growth, one-year job growth and short-term job growth.
The Milken Institute is a nonprofit, nonpartisan economic think tank that has its data and rankings widely used by corporate site selectors, investors and economic development professionals, making a high placement a strong third-party signal of a region’s economic strength and competitiveness.
The institute notes that while leisure and hospitality, education and health care have driven a large share of recent growth, St. George has outpaced national five-year employment growth in every major economic sector. Although its overall high-tech concentration remains relatively low compared to some metros, its rate of high-tech expansion, highlighted in developments like Tech Ridge, is unmatched among small cities.
Beyond raw growth numbers, the index incorporates wage trends, business formation, access to broadband, community resilience and shared access to economic opportunity.
St. George as scene from Tech Ridge, St. George, Utah, date not specified.
St. George ranks in the top 25% of small cities for broadband access and community resilience. The city’s income inequality also improved significantly, with its ranking for income equality improving by 87 spots from last year.
Thomas said the No. 1 ranking strengthens St. George’s national profile in several practical ways.
“St. George has long been on the map,” he said. “I don’t think we’re a secret anymore, but it does help for a few things.”
An area the ranking particularly helps with is business and talent recruitment. It helps people decide whether St. George is the right place to stay or relocate for the best employment opportunities.
“We need all the above,” Thomas said. “We need people to come. We need our talent to stay. Our talent is our No. 1 export. So we want them to realize that in this place, you can be successful. And so it’s a great ranking all around.”
Because Milken’s rankings are widely followed by corporate site-selection consultants, developers and institutional investors, high placement can influence where companies choose to expand or relocate, and where capital flows for industrial, office, housing and mixed-use projects. City officials view the recognition as third-party validation that St. George’s economy is not only growing, but diversifying.
Thomas pointed to technology-sector growth as a major factor behind the city’s rise.
A competitor participates in this year’s coding camp on Tech Ridge Drive, St. George, Utah, Nov. 14, 2025.
“They look at population, they look at job growth specifically, and a few of them more like tech sector jobs,” he said. “From a five-year window, we were actually the number one fastest-growing tech sector job growth area in the country as well. That’s one of the reasons why the city has spent so much emphasis on projects like Tech Ridge. We want to keep our talent here, and we also want to create spaces for new projects.”
St. George Mayor Jimmie Hughes said in a statement that the ranking reflects the city’s economic strength and quality of life.
“Being ranked the #1 Small City in America confirms what we have long known in St. George,” he said. “With more than 300 days of sunshine, a strong pro-business environment and access to world-class outdoor amenities, our community offers an unmatched quality of life and opportunity. Built on a pioneer spirit that values hard work and innovation, St. George is proud to be recognized by respected institutions like the Milken Institute as a place where businesses and people can thrive.”
Milken’s report also identifies areas that could threaten long-term performance if not addressed. Among small metros, housing affordability has declined in most markets nationwide over the past decade, and the trend has accelerated since the COVID-19 pandemic. Cities that fail to tame cost-of-living pressures risk undermining their own growth.
“If you look at the ranking, they address two major concerns with our market,” Thomas said.
Residential construction continues in Washington County as the population continues to grow, St. George, Utah, 2023.
For St. George specifically, the institute notes that housing supply has struggled to keep pace with population growth despite a booming construction sector. It also flags long-term environmental challenges related to water shortages and high wildfire risk.
Water will always be an issue because St. George is in the middle of a desert, Thomas said. As for housing, he called it the city’s primary challenge.
“When you are No. 1, when you’re a desirable place, housing will be a challenge, because people want to be here,” he said. “We’re very fortunate to have a great city council that is doing what they can to address those, those issues, and we’ll continue to do what we need to do to continue to make our city a success.”
City officials say maintaining the top ranking will require balancing growth with infrastructure investment, workforce development and long-term resource planning. For now, St. George’s climb to No. 1 offers a strong signal to businesses, investors and residents that the region’s economic momentum is real and nationally recognized.
