Economic development a top priority for U.S. mayors, study shows

August 1, 2024

Economic development ranks as the most-discussed issue among mayors in the United States, according to the National League of Cities (NLC), which just released its 2024 State of the Cities Report.

According to an analysis of mayoral State of the City speeches, economic development was the most prominent topic, accounting for 32% of the average overall speech duration.

Infrastructure (24%) ranked second, followed by housing (14%), public safety (10%) and public health (9%).

The report also considered input from mayors who participated in an NLC survey.

Eighty percent of mayors saw economic development as a positive in their cities, rating their city’s economic situation as “acceptable to excellent,” while 33% said attracting businesses to their city presented significant challenges.

“The survey data presents an intriguing dichotomy in the perspectives of city mayors regarding their economic landscapes,” the NLC said in its report. “On the one hand, there is a sense of guarded confidence, with a majority viewing their cities’ economic situations as either acceptable, good or excellent – a testament to the resilience and potential of municipal economies.

“On the other hand, the data unveils underlying challenges that persist beneath the surface of this optimism. Thirty-three percent of mayors pinpoint the difficulty in attracting businesses as a primary economic hurdle, highlighting the competitive nature of economic development and the need for cities to differentiate themselves to lure enterprises.”

Eleven percent of mayors surveyed said insufficient federal investment in economic development was an issue, and 10% said poverty was a main economic challenge.

Mayors said infrastructure challenges included the vulnerability of water systems, sewers, roads and bridges to extreme weather events and other issues related to climate change. Just 18% of mayors said their cities were prepared for natural disasters, the NLC said.

Availability and affordability of housing also remains a topic of concern, the NLC said.

According to survey data, 60% of mayors describe the housing situation in their cities as less than satisfactory, with 41% labeling housing as poor and 18% very poor.

Only 14% of mayors labeled housing as either good or excellent.

The NLC said more access to federal funding appeared to be among the likeliest solutions to helping cities solve problems.

Mayors surveyed said support delivered through the American Rescue Plan Act had been a lifeline, enabling them to stabilize their budgets and invest in essential services.

“While not all municipalities have applied for and received these funds, the success stories highlight the need for continued federal support and more streamlined guidance to ensure all local governments can access and utilize federal funds and resources effectively in the future,” the NLC said. 


Photo by Niko Vassios on Unsplash

Miles Smith

Miles Smith has more than two decades of communications experience in the public and private sectors, including several years of covering local governments for various daily and weekly print publications. His scope of work includes handling public relations for large private-sector corporations and managing public-facing communications for local governments.

Smith has recently joined the team as a content writer for SPI’s news publications, which include Texas Government Insider, Government Contracting Pipeline and its newest digital product, Government Market News, which launched in September 2023. He graduated from Texas A&M University with a bachelor’s in journalism.

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