North Carolina’s Economy Is Booming—So Why Are Residents Feeling Priced Out?

RALEIGH, N.C. (BAMM Network) — North Carolina continues to rank among the nation's top destinations for business investment, but the state's latest economic report card underscores a growing challenge confronting many longtime residents: keeping up with the cost of living.

Media outlet CNBC released its 2026 rankings in business, and North Carolina has lost its first place ranking in business nationwide, ranking second now and falling short in certain categories. (Port City Daily_File)

In CNBC's 2026 America's Top States for Business rankings, North Carolina slipped from No. 1 to No. 2 overall after six consecutive years in the top two. While the Tar Heel State earned the nation's top ranking for its economy and ranked third for workforce, it fell sharply in affordability, dropping to 35th in cost of living. Rising housing prices, child care expenses, health care costs and utility bills were among the factors cited for the decline.

The rankings highlight a growing contradiction facing not only North Carolina but much of the South.

States are successfully attracting major employers, advanced manufacturing facilities and thousands of new residents, yet many of the people who have lived and worked there for years say the communities they helped build are becoming increasingly difficult to afford.

Gov. Josh Stein acknowledged the challenge following the release of the rankings.

"North Carolina's got a good thing going," Stein said in a statement. "But this ranking proves that we can't rest on our laurels. Other states want what we have, and we've got to keep investing to build strong infrastructure, double down on our high quality of life, and make North Carolina more affordable to live, work, and raise a family. My administration is working to lower the cost of housing, child care, health care, and utilities."

Over the past several years, North Carolina has landed billions of dollars in private investment from companies in technology, life sciences, electric vehicles and advanced manufacturing. Population growth has accelerated in metropolitan areas such as Charlotte and Raleigh, while smaller cities including Wilmington, Greenville and Asheville have also experienced significant residential and commercial development.

Economic development officials point to those investments as evidence that North Carolina remains one of the nation's strongest business climates.

The North Carolina Chamber celebrated the CNBC rankings, noting that the state remained among the country's top two business destinations while leading the nation in economic performance.

But many economists say rapid growth often comes with unintended consequences.

As demand for housing increases, home prices and rents frequently outpace wage growth. Child care shortages have driven up costs for working families, while utility and health care expenses continue to consume larger portions of household budgets.

Those pressures are particularly evident in Charlotte and Raleigh, where median home prices have risen substantially over the past decade as new residents relocate from higher-cost states. The affordability squeeze has also spread into suburban and rural communities once viewed as lower-cost alternatives.

The issue extends beyond housing.

Uptown Charlotte. Photo: Alexandria Sands/Axios

Businesses recruiting new workers increasingly cite child care availability, transportation and overall affordability as key factors affecting workforce participation. At the same time, longtime residents worry that economic success is becoming harder to share equally.

The CNBC rankings reflected those concerns. While North Carolina ranked first in the nation for its economy and remained among the country's strongest states for workforce development, weaknesses in affordability and quality of life prevented it from retaining the top overall position.

The debate raises a broader question that extends well beyond North Carolina.

Across much of the South, governors and economic development leaders have spent years marketing their states as business-friendly destinations for major employers. New factories, corporate headquarters and technology investments have brought jobs and tax revenue to communities throughout the region.

Increasingly, however, residents are asking a different question:

If a state is one of the best places for businesses to grow, is it also becoming a better place for workers and families to build a life?

For North Carolina, the answer may determine whether its next chapter of economic growth benefits both the companies arriving—and the communities that have long called the state home.

This story is based on CNBC's 2026 America’s Top States for Business rankings, statements from the Office of North Carolina Gov. Josh Stein and additional reporting from Axios Charlotte.