North Carolina has slipped to second place in CNBC’s 2024 "America’s Top States for Business" rankings, ending a two-year streak at the top spot. While the state remains a premier destination for corporate investment, rising costs and shifts in the competitive landscape have allowed Virginia to reclaim the number one position.
Why North Carolina Dropped in the Rankings
CNBC’s annual methodology evaluates all 50 states across 10 categories, including workforce, infrastructure, and cost of doing business. North Carolina’s decline is primarily attributed to increasing expenses that have begun to outpace some of its neighbors. According to the 2024 CNBC rankings, the state’s rapid economic growth has driven up housing and operational costs, impacting its score in the "Cost of Doing Business" category.
Despite the drop, North Carolina maintains a strong overall economic profile.
Virginia’s Return to the Top
Virginia secured the top spot in 2024, marking its sixth time leading the list since CNBC began the rankings in 2007.
The shift at the top reflects a broader trend among high-performing states.
Comparative Performance Metrics
The following table summarizes the status of the top-performing states based on the CNBC 2024 data:
| State | 2024 Rank | Primary Strength |
|---|---|---|
| Virginia | 1 | Workforce & Education |
| North Carolina | 2 | Economic Growth & Infrastructure |
| Texas | 3 | Economy & Business Friendliness |
The Impact of Economic Growth on State Competitiveness
The competitive gap between states is often defined by the tension between rapid growth and affordability. As North Carolina has experienced significant population gains and corporate expansion, the resulting demand for real estate and labor has naturally increased overhead costs.
Looking Ahead
For investors and site selectors, the rankings serve as a snapshot of current conditions rather than a permanent status.
Worth a look