{"id":45504,"date":"2025-12-10T07:31:37","date_gmt":"2025-12-10T04:31:37","guid":{"rendered":"https:\/\/www.commercialcafe.com\/blog\/?p=45504"},"modified":"2026-03-17T14:18:56","modified_gmt":"2026-03-17T11:18:56","slug":"best-us-cities-for-startups","status":"publish","type":"post","link":"https:\/\/www.commercialcafe.com\/blog\/best-us-cities-for-startups\/","title":{"rendered":"Best Cities for Startups: Phoenix &#038; Austin Lead the Charge for New Business Density &#038; Growth"},"content":{"rendered":"<div class=\"wpb-content-wrapper\">[vc_row][vc_column][vc_column_text css=&#8221;&#8221;]The map of the startup ecosystem is currently being redrawn as both investors and founders are adapting to a new economic reality \u2014 one that\u2019s unlikely to sustain previous levels of funding.<\/p>\n<p>In the U.S. and across the globe, 2021 marked the year of the most generous seed funding sprees. Since then, rising interest rates, supply chain disruptions, and inflation surges have all contributed to a more targeted and cautious approach from venture capital holders, who are now targeting AI, software as a service (SaaS), fintech and health tech startups. That tightening of capital means that startups must now rely more heavily on fundamental business health and the strength of their local ecosystems.<\/p>\n<p>Simultaneously, local government initiatives that reduce the cost of doing business and create an environment that provides support and opportunities for these new companies also play a vital role in the success of a city\u2019s startup scene.<\/p>\n<p>With that in mind, we analyzed two categories of U.S. cities \u2014 those with populations below and above 1 million. Specifically, we measured their performances across a range of indicators \u2014 such as office or coworking costs; networking opportunities; startup density and survival rate; Kickstarter funding success; and the percentage of college-educated individuals \u2014 to ascertain which were the best breeding grounds for new businesses.<\/p>\n<p>Here are some of the takeaways:<\/p>\n<p><strong>Populations Above 1 Million\u00a0<\/strong><\/p>\n<ul>\n<li><em>Phoenix leads all major U.S. cities in startup density and growth<\/em><\/li>\n<li><em>San Antonio\u2019s cost advantage \u2014 cheapest labor and office rents for startups<\/em><\/li>\n<li><em>Jacksonville, Fla., leads in freelance growth<\/em><\/li>\n<li><em>New York City #1 for networking opportunities<\/em><\/li>\n<li><em>San Diego\u2019s research hub advantage \u2014 highest share of residents with bachelor\u2019s degrees<\/em><\/li>\n<\/ul>\n<p><strong>Population 500,000 to 1 million\u00a0<\/strong><\/p>\n<ul>\n<li><em>Austin, Texas, is #1 in new business growth &amp; startup density<\/em><\/li>\n<li><em>Tucson, Ariz.\u2019s triple advantage \u2014 lowest costs for office space, labor &amp; living<\/em><\/li>\n<li><em>Fresno, Calif., freelancer workforce grows by 19% between 2019-2023<\/em><\/li>\n<li><em>Nashville, Tenn., &amp; Austin, Texas, leverage creative industries for top crowdfunding performance<\/em><\/li>\n<\/ul>\n<p>Keep reading for an overview of the how cities from each category fared, followed by a breakdown by indicator.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_tta_accordion section_title_tag=&#8221;h3&#8243; shape=&#8221;square&#8221; color=&#8221;peacoc&#8221; c_icon=&#8221;chevron&#8221; c_position=&#8221;left&#8221; active_section=&#8221;1&#8243; no_fill=&#8221;true&#8221; collapsible_all=&#8221;true&#8221; title=&#8221;Cities With 1 Million+ Residents&#8221;][vc_tta_section title=&#8221;Phoenix Startup Density &amp; Growth Outshine Competition, San Antonio Stands Out for Unbeatable Cost Advantages&#8221; tab_id=&#8221;1761302493768-0fef10de-cb09&#8243;][vc_column_text css=&#8221;&#8221;]Garnering 62.1 out of a total of 100 points,\u00a0<strong>Phoenix<\/strong>\u00a0led the ranking for U.S. cities with more than 1 million residents. As a matter of fact, the city amassed a solid series of first-place finishes, including collecting maximum points for its startup density and percentage increase. In addition, Phoenix boasted the second-highest jump in its total share of college-educated residents, extending its prospective talent pool by nearly one-third between 2019 and 2024.<\/p>\n<p>Runner-up\u00a0<strong>San Antonio<\/strong> totaled 57.1 points with strong performances across metrics that looked at the cost of doing business in various cities. For instance, it ranked first for both labor costs \u2014 with median earnings just below $43,000 per year \u2014 and regional price parity (RPP), while also having some of the lowest rates for renting office and coworking spaces. Unsurprisingly, these inherent advantages boost startup chances of survival: Two-thirds of new companies in San Antonio are still active up to five years after their initial establishment.[\/vc_column_text][vc_raw_html css=&#8221;&#8221;]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[\/vc_raw_html][vc_column_text css=&#8221;&#8221;]Next,<strong> Dallas<\/strong>\u00a0and\u00a0<strong>Fort Worth, Texas<\/strong>, occupy the following two positions with their numbers closely mirroring each other and demonstrating the strength of the wider metro area to which they belong. Noteworthy performances include ties for second place across the startup density and growth metrics, as well as the share of freelancers.<\/p>\n<p>Then, in fifth place,\u00a0<strong>Jacksonville, Fla.,<\/strong>\u00a0recorded the most significant percentage increase in its college-educated residents between 2019 and 2024, as well as the highest share of freelance workers within its labor force. Furthermore, the Jacksonville office and coworking rates are unbeatable among cities with more than 1 million residents.<\/p>\n<p>Otherwise, honorable mentions include\u00a0<strong>San Diego<\/strong>\u00a0(eighth place overall), which boasts the highest percentage of residents with at least a bachelor\u2019s degree, as well as the highest share of consulting firms within its local economy.<\/p>\n<p><strong>New York City<\/strong>\u00a0came in last, mainly weighed down by metrics associated with the costs of doing business in the city. Nevertheless, it shone in terms of Kickstarter success rates and networking potential in a testament to the city\u2019s creative potential, despite mounting challenges.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=&#8221;Cost of Doing Business (Coworking, Office, Labor Costs &amp; RPP)&#8221; tab_id=&#8221;1761302493778-89023d39-80b8&#8243;][vc_column_text css=&#8221;&#8221;]San Antonio currently offers some of the most favorable conditions for new businesses, particularly in terms of living and labor costs. Specifically, it ranks first among cities with more than 1 million residents for its regional price parity, which is roughly 6% lower than the national average. It\u2019s followed by Jacksonville, Fla.<\/p>\n<p>Plus, San Antonio also ranked first in terms of labor costs for new companies with a median salary of $42,713 per year as of 2024. That\u2019s roughly $3,400 more affordable than runner-up Houston and nearly $9,000 below the rate of the other Texas entries (Dallas and Fort Worth).<\/p>\n<p>Furthermore, San Antonio also boasts the third-most-affordable prices for renting office space: The average asking rate for a 1,000-square-foot workspace that accommodates five employees was $27,260\u00a0per year. The only other city in this category that offers more favorable terms is Jacksonville, Fla., which charges $23,174, on average, for the same size of space.<\/p>\n<p>Not to be outdone, Houston and Chicago (ranked second\u00a0and fourth, respectively, for this metric) have similar costs with yearly office rents hovering around $27,000 to $28,000. At the opposite end, we find the likes of Los Angeles, San Diego, and New York City with office renting costs at double or even triple those of other entries on the list.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-46053 size-full\" src=\"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Cost-of-business-large-cities-2.png\" alt=\"cost of living, labor, office and coworking in US cities with more than 1 million people\" width=\"1074\" height=\"1408\" srcset=\"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Cost-of-business-large-cities-2.png 1074w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Cost-of-business-large-cities-2.png?resize=114,150 114w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Cost-of-business-large-cities-2.png?resize=229,300 229w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Cost-of-business-large-cities-2.png?resize=768,1007 768w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Cost-of-business-large-cities-2.png?resize=824,1080 824w\" sizes=\"auto, (max-width: 1074px) 100vw, 1074px\" \/><\/p>\n<p>Flexibility is key for new businesses, and coworking spaces enable these businesses not only to quickly scale up as their workforce and operations expand, but also to manage costs effectively. In this case, <a href=\"https:\/\/www.commercialcafe.com\/coworking-space\/us\/fl\/jacksonville\/\" target=\"_blank\" rel=\"noopener\">coworking spaces in Jacksonville, Fla.<\/a>, provide the most affordable option with a median asking price of $9,000 per year for a space that can accommodate up to five employees.<\/p>\n<p>In second place, San Antonio rates are slightly higher at $10,500, whereas the starting prices for Chicago and Houston are between $2,000 and $3,000 more than that.<\/p>\n<p>Naturally, as we reach California and New York, we\u2019re entering an entirely different league in terms of costs. More precisely, rates for <a href=\"https:\/\/www.commercialcafe.com\/coworking-space\/us\/ca\/san-diego\/\" target=\"_blank\" rel=\"noopener\">flexible office spaces in San Diego<\/a> and Los Angeles average $14,100 per year, while businesses looking for <a href=\"https:\/\/www.commercialcafe.com\/coworking-space\/us\/ny\/new-york-city\/\" target=\"_blank\" rel=\"noopener\">coworking space in New York<\/a> face costs that are more than double those in Jacksonville, Fla., and San Antonio.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=&#8221;Freelancers &amp; Networking Opportunities&#8221; tab_id=&#8221;1761302746185-37ab22ad-49e7&#8243;][vc_column_text css=&#8221;&#8221;]Freelancers fill an important gap in the demand for talent by providing a great option for new businesses that might need certain specialized services for a pre-determined period of time, but that also want to maintain a nimble workforce. Accordingly, an active networking scene is essential in bringing together companies in need of such professionals with top local and regional talent. So, in this section, we\u2019ll examine the number of networking events in various cities, as well as the percentage growth of freelance and gig workers from 2019 to 2023.<\/p>\n<p>With a nearly 20% jump in its overall freelancing workforce, Jacksonville, Fla., takes the lead for this metric, landing roughly 6% ahead of runners-up Dallas and Fort Worth, Texas. Generally, cities in the South and Southwest have experienced strong growth during the surveyed period, in contrast to California cities like Los Angeles and San Diego, where the share of freelancers and gig workers has either stagnated or slightly declined.<\/p>\n<p>Then, as the only Midwestern entry among cities with more than 1 million residents, Chicago had a solid 7% increase in its freelancing workforce, outranking New York City (5%), but below Philadelphia (8%).[\/vc_column_text][vc_raw_html css=&#8221;&#8221;]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[\/vc_raw_html][vc_column_text css=&#8221;&#8221;]However, in terms of networking opportunities, New York remains the #1 hub for hobnobbing with the best and the brightest of the business world, which is a real magnet for startups and talent alike. For scale, it\u2019s worth noting that runner-up Chicago and third-placed San Diego\u2019s networking calendars have less than half of the total scheduled events as New York City.<\/p>\n<p>Additionally, when considering the surprisingly low number of meetups in Los Angeles (one of the most active startup scenes nationally) compared to places like Dallas, it\u2019s important to remember the diversity of business ecosystems that develop around major U.S. cities. For example, the Los Angeles startup scene \u2014 often referred to as \u201cSilicon Beach\u201d \u2014 is sprawling and diverse with hubs in Santa Monica, Calif.; Venice, Calif.; and downtown Los Angeles.<\/p>\n<p>This results not only in events that cover a wide range of industries, but also in a more decentralized structure with networking events spread throughout the greater metropolitan area. Conversely, the Dallas startup scene is more centralized with an events calendar anchored by a few major, recurring events, such as Dallas Startup Week or CodeLaunch DFW.[\/vc_column_text][vc_raw_html css=&#8221;&#8221;]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[\/vc_raw_html][\/vc_tta_section][vc_tta_section title=&#8221;Kickstarter Success Rate&#8221; tab_id=&#8221;1761302941801-2e255737-202d&#8221;][vc_column_text css=&#8221;&#8221;]While a city\u2019s Kickstarter success rate is not a formal economic indicator, it nevertheless offers valuable insights into the local business support networks that enable startups and innovators to thrive. That\u2019s because these networks help entrepreneurs access the resources necessary to turn their ideas into reality and, in turn, build their customer bases.<\/p>\n<p>Of course, Kickstarter campaigns require not only brilliant ideas, but also a diverse set of skills encompassing product design, marketing and a well-planned fulfillment strategy. As such, cities that attract a high number of professionals with varied skill sets will have a distinct advantage in this regard.<\/p>\n<p>Unsurprisingly, New York City leads with a Kickstarter success rate of 54%. Chicago follows in second place with a 50% success rate, while Los Angeles and Philadelphia trail closely with rates of 47%.<\/p>\n<p>Moreover, when we factor in the significantly\u00a0<a href=\"https:\/\/rpubs.com\/dansc\/kick\" target=\"_blank\" rel=\"nofollow noopener\">higher volume of projects<\/a>\u00a0launched by creators living in New York compared to other entries, the city\u2019s success rate becomes even more impressive. In fact, the only other U.S. city that comes close to it in terms of activity is Los Angeles. Chicago completes the top three totaling roughly one-third of those in New York and Los Angeles.<\/p>\n<p>Otherwise, among cities with populations exceeding 1 million residents, Jacksonville, Fla., and Houston have witnessed the lowest percentages of completed Kickstarter projects since the platform\u2019s inception. Out of a total of 1,200 projects, Jacksonville creators obtained funding for approximately 28%, whereas, in Houston, 32% out of 4,770 such projects were successful.[\/vc_column_text][vc_raw_html css=&#8221;&#8221;]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[\/vc_raw_html][\/vc_tta_section][vc_tta_section title=&#8221;Education&#8221; tab_id=&#8221;1761303015152-8cb06180-d2eb&#8221;][vc_column_text css=&#8221;&#8221;]Educational attainment levels within a city are a good indicator not only of the presence of highly rated institutions, but also of their ability to retain and engage some of these graduates in the local economy.<\/p>\n<p>So, bearing in mind San Diego\u2019s reputation as a hub for scientific research, it\u2019s no surprise that it boasts the highest percentage of individuals with a bachelor\u2019s degree (38%) among cities with more than 1 million residents. Moreover, between 2019 and 2024, educational attainment rates have increased by roughly 15%.<\/p>\n<p>Part of the University of California system, UC San Diego is the main destination for local students and those moving to the city. It also has one of the most generous budgets dedicated to research in the United States and is an important job-creator within San Diego.<\/p>\n<p>Next, at 33%, Chicago ranked second for this metric after recording a similar increase during the surveyed five-year period. Then, New York wraps up the top three with 31% of residents having earned a bachelor\u2019s degree.<\/p>\n<p>Among the most populous U.S. cities, educational attainment levels in San Antonio and Fort Worth, Texas, are the lowest, by comparison. In part, these percentages are tied to the fact that both cities have had connections with the military and defense industry, which has created many well-paying jobs that didn\u2019t necessarily require academic accolades, focusing rather on specialized technical skills.<\/p>\n<p>Furthermore, Texas cities \u2014 including Fort Worth and San Antonio \u2014 tend to have a higher percentage of adults with\u00a0<a href=\"https:\/\/www.tamus.edu\/data-science\/2023\/04\/01\/educational-attainment-in-texas-some-college-no-degree\/\" target=\"_blank\" rel=\"nofollow noopener\">\u201csome college, no degree.\u201d<\/a>\u00a0This indicates that many students start college, but face obstacles (be it financial, family or academic) that prevent them from completing their four-year degree.<\/p>\n<p>However, there are some encouraging signs. Namely, low-ranking entries in terms of their educational attainment levels \u2014 cities like Jacksonville, Fla.; Phoenix; and Fort Worth, Texas \u2014 have also witnessed the most significant increases between 2019 and 2024.[\/vc_column_text][vc_raw_html css=&#8221;&#8221;]JTNDZGl2JTIwY2xhc3MlM0QlMjJpbmZvZ3JhbS1lbWJlZCUyMiUyMGRhdGEtaWQlM0QlMjI1NDMyYTI3OS1iZWJjLTQ5YTUtYmMyOS1iMTEzMDhjYmZmZWYlMjIlMjBkYXRhLXR5cGUlM0QlMjJpbnRlcmFjdGl2ZSUyMiUyMGRhdGEtdGl0bGUlM0QlMjJFZHVjYXRpb25hbCUyMGF0dGFpbm1lbnQlMjAtJTIwMjAyNCUyMFYxJTIyJTNFJTNDJTJGZGl2JTNFJTNDc2NyaXB0JTNFJTIxZnVuY3Rpb24lMjhlJTJDbiUyQ2klMkNzJTI5JTdCdmFyJTIwZCUzRCUyMkluZm9ncmFtRW1iZWRzJTIyJTNCdmFyJTIwbyUzRGUuZ2V0RWxlbWVudHNCeVRhZ05hbWUlMjhuJTI5JTVCMCU1RCUzQmlmJTI4d2luZG93JTVCZCU1RCUyNiUyNndpbmRvdyU1QmQlNUQuaW5pdGlhbGl6ZWQlMjl3aW5kb3clNUJkJTVELnByb2Nlc3MlMjYlMjZ3aW5kb3clNUJkJTVELnByb2Nlc3MlMjglMjklM0JlbHNlJTIwaWYlMjglMjFlLmdldEVsZW1lbnRCeUlkJTI4aSUyOSUyOSU3QnZhciUyMHIlM0RlLmNyZWF0ZUVsZW1lbnQlMjhuJTI5JTNCci5hc3luYyUzRDElMkNyLmlkJTNEaSUyQ3Iuc3JjJTNEcyUyQ28ucGFyZW50Tm9kZS5pbnNlcnRCZWZvcmUlMjhyJTJDbyUyOSU3RCU3RCUyOGRvY3VtZW50JTJDJTIyc2NyaXB0JTIyJTJDJTIyaW5mb2dyYW0tYXN5bmMlMjIlMkMlMjJodHRwcyUzQSUyRiUyRmUuaW5mb2dyYW0uY29tJTJGanMlMkZkaXN0JTJGZW1iZWQtbG9hZGVyLW1pbi5qcyUyMiUyOSUzQiUzQyUyRnNjcmlwdCUzRQ==[\/vc_raw_html][\/vc_tta_section][vc_tta_section title=&#8221;Startup Ecosystem&#8221; tab_id=&#8221;1761303121593-8459589e-da9e&#8221;][vc_column_text css=&#8221;&#8221;]To determine how each city in our ranking is positioned in providing an environment that allows new businesses to thrive, we examined three separate metrics \u2014 new establishment density; percentage changes in the number of new companies between 2019 and 2023; and the survival rates for these fledgling ventures.<\/p>\n<p>To start, Phoenix claimed the #1 spot for startup density with Dallas and Fort Worth, Texas, following closely. According to the most recently published U.S. Census data, roughly 11% of total businesses in all three cities are less than one year old.<\/p>\n<p>Phoenix also stands out as the most prolific city when it comes to the increase of new businesses in five years. At 27%, it sits above a quartet of Texas entries \u2014 Fort Worth and Dallas (both with 20%); San Antonio (19%); and Houston (15%). New businesses in these cities not only attract top talent, but also often manage to lock down vital funding for expansion.<\/p>\n<p>For instance, with an estimated 251 to 500 employees, Hammoq \u2014 an AI-listing solution designed to automate business for resellers of used, vintage and returned items \u2014 is a major local job creator on Phoenix\u2019s startup scene. Similarly, Island (one of the most prominent tech startups to emerge from Dallas recently) is a cybersecurity company that pioneered the \u201cEnterprise Browser\u201d \u2014 a tool that integrates security controls directly into the browser, thereby allowing organizations to protect users and data while interacting with SaaS and internal web applications.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-46056 size-full\" src=\"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Startup-ecosystem-Large-cities-3.png\" alt=\"startup health metrics\" width=\"1534\" height=\"1544\" srcset=\"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Startup-ecosystem-Large-cities-3.png 1534w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Startup-ecosystem-Large-cities-3.png?resize=150,150 150w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Startup-ecosystem-Large-cities-3.png?resize=298,300 298w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Startup-ecosystem-Large-cities-3.png?resize=768,773 768w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Startup-ecosystem-Large-cities-3.png?resize=1073,1080 1073w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Startup-ecosystem-Large-cities-3.png?resize=1526,1536 1526w\" sizes=\"auto, (max-width: 1534px) 100vw, 1534px\" \/><\/p>\n<p>Moving on, we can see that variations between new business survival rates in the cities we ranked are relatively small, ranging from 63% to 66%. Once again, Texas stands out as San Antonio shares first place with Philadelphia, followed closely by San Diego and Chicago.<\/p>\n<p>In Philadelphia, the life sciences sector has seen large funding rounds for companies like Latus Bio and Uniquity Bio, while notable startups within this field from San Diego include the likes of Artiva Biotherapeutics, Aspen Neuroscience and Escien Pharmaceuticals.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][vc_column_text css=&#8221;&#8221;][\/vc_column_text][vc_tta_accordion section_title_tag=&#8221;h3&#8243; shape=&#8221;square&#8221; color=&#8221;peacoc&#8221; c_icon=&#8221;chevron&#8221; active_section=&#8221;1&#8243; no_fill=&#8221;true&#8221; collapsible_all=&#8221;true&#8221; title=&#8221;Cities With 500,000 to 1 Million Residents&#8221;][vc_tta_section title=&#8221;Austin, Texas, Dominates Ranking: #1 in Startup Share, Growth &amp; Share of College-Educated Residents&#8221; tab_id=&#8221;1761303631427-b7fba269-fd2e&#8221;][vc_column_text css=&#8221;&#8221;]<strong>Austin, Texas,<\/strong>\u00a0picked up 73 out of a total of 100 points on the back of an exceptional run of top-tier performances. Specifically, the Texas capital was the frontrunner for indicators that looked at the overall share of startups within the local economy, as well as growth rates in five years (2019 to 2023). On top of that, Austin also topped the rankings for its percentage of college-educated residents and its consulting firms, which provide vital support for burgeoning enterprises.<\/p>\n<p>Next,\u00a0<strong>Nashville, Tenn.,<\/strong>\u00a0put together a string of second-place finishes that helped it acquire a respectable 68.6 points. What\u2019s more, Music City was the frontrunner in terms of Kickstarter success percentages, as well as the second-best for startup survival rates and share of freelancers within the economy.<\/p>\n<p>In third place,\u00a0<strong>Indianapolis<\/strong>\u00a0is a leader in startup survival percentages. Its other remarkable performances include the third-lowest coworking costs and fourth-most-affordable office rents.[\/vc_column_text][vc_raw_html css=&#8221;&#8221;]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[\/vc_raw_html][vc_column_text css=&#8221;&#8221;]Not to be outdone,<strong> Tucson<\/strong>,\u00a0<strong>Ariz.,<\/strong>\u00a0boasted the lowest labor costs and the third-lowest office rates, along with regional price parity. The city also provides the second-most cost-effective option for flexible work. Overall, it ranked fourth with 58.8 points.<\/p>\n<p>Nearby,\u00a0<strong>Mesa, Ariz.,<\/strong>\u00a0earned fifth place, excelling due to its outstanding rate of growth of its college-educated population and the highest increase in new businesses between 2019 and 2023.<\/p>\n<p>Other top finishes across individual metrics included\u00a0<strong>Louisville, Ky.,<\/strong> which led the ranking in terms of office and coworking costs.\u00a0<strong>Nashville, Tenn.,<\/strong>\u00a0also nabbed first place for Kickstarter success rates and networking potential, while\u00a0<strong>Albuquerque, N.M.,<\/strong> ranked #1 for regional price parity.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=&#8221;Cost of Doing Business (Coworking, Office, Labor Costs &amp; RPP)&#8221; tab_id=&#8221;1761303631435-8261451d-d8b8&#8243;][vc_column_text css=&#8221;&#8221;]Tucson, Ariz., distinguishes itself through its low operating costs, boasting the most affordable options for fledgling businesses looking to fulfill their office space needs, as well as the lowest labor costs and regional price parity in the top 10.<\/p>\n<p>To put some numbers to its performance, Tucson is approximately 6% more affordable in terms of living costs than the national average. In addition, employers can find talent with comparatively low median wages ($42,206 per year). Those employers will also have the benefit of some of the most budget-friendly office space options ($21,610 per year for 1,000 square feet).<\/p>\n<p>Or, <a href=\"https:\/\/www.commercialcafe.com\/coworking-space\/us\/az\/tucson\/\" target=\"_blank\" rel=\"noopener\">coworking offices in Tucson<\/a> have median asking rates of $11,700 per year for a group of five employees, with only prices in Louisville, Ky., able to compete (at $9,540). The other Arizona entry in this category, Mesa, found itself in fifth place for this indicator, with a median starting price for a Mesa flexible office space that can accommodate five employees at roughly $13,800 per year. Albuquerque, N.M., and <a href=\"https:\/\/www.commercialcafe.com\/coworking-space\/us\/in\/indianapolis\/\" target=\"_blank\" rel=\"noopener\">Indianapolis coworking space<\/a> options are slightly more affordable, at $13,740 and $12,540 per year, respectively.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-46059 size-full\" src=\"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Cost-of-business-medium-cities-3.png\" alt=\"Cost of business - medium cities\" width=\"1079\" height=\"1327\" srcset=\"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Cost-of-business-medium-cities-3.png 1079w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Cost-of-business-medium-cities-3.png?resize=122,150 122w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Cost-of-business-medium-cities-3.png?resize=244,300 244w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Cost-of-business-medium-cities-3.png?resize=768,945 768w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Cost-of-business-medium-cities-3.png?resize=878,1080 878w\" sizes=\"auto, (max-width: 1079px) 100vw, 1079px\" \/><\/p>\n<p>At the other end of the spectrum, the highest flexible office costs among cities with fewer than 1 million residents were borne by a quartet of Nashville, Tenn.; Austin, Texas; Fresno, Calif.; and Las Vegas, although it\u2019s worth mentioning that the disparities between the top and bottom ranking entries in this population category are much less pronounced: The median starting rate in all four was $14,100 per year, meaning there\u2019s a $4,500 gap compared to <a href=\"https:\/\/www.commercialcafe.com\/coworking-space\/us\/ky\/louisville\/\" target=\"_blank\" rel=\"noopener\">coworking spaces in Louisville, Ky<\/a>.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=&#8221;Freelancers &amp; Networking Opportunities&#8221; tab_id=&#8221;1761303844766-e568a029-0c21&#8243;][vc_column_text css=&#8221;&#8221;]At 19%, Fresno, Calif., witnessed the highest increase in the number of freelancers between 2019 and 2023, outpacing Nashville, Tenn., (18%) and Las Vegas (15%), which complete the podium.<\/p>\n<p>Of course, the period between 2019 and 2023 saw significant shifts in the U.S. workforce, primarily driven by the COVID-19 pandemic. Remote work became widely adopted, and the number of non-employee firms surged across the country. Accordingly, most of the cities that made the ranking recorded double-digit growth in their numbers of freelancers. The only exceptions were the bottom three \u2014 Louisville, Ky.; Tucson, Ariz.; and Albuquerque, N.M.<\/p>\n<p>In Nashville, Tenn., for instance, the continued\u00a0<a href=\"https:\/\/ourbraintrust.org\/2024\/02\/nashvilles-growth-explore-trends-and-maximize-opportunities\/\" target=\"_blank\" rel=\"nofollow noopener\">expansion of industries such as health care<\/a>, technology, tourism and entertainment is a key driver of demand for talent. For comparison, across California, a 2022\u00a0<a href=\"https:\/\/laborcenter.berkeley.edu\/independent-contracting-in-california\/\" target=\"_blank\" rel=\"nofollow noopener\">study by the UC Berkeley Labor Center<\/a>\u00a0identified entertainment; professional services (such as accounting and consulting); and real estate among the main generators of independent contracting.[\/vc_column_text][vc_raw_html css=&#8221;&#8221;]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[\/vc_raw_html][vc_column_text css=&#8221;&#8221;]In terms of networking opportunities, Charlotte, N.C., is a prime destination. The city boasts no fewer than 76 events across the surveyed period (more details in our methodology). Next in line, events total around 50 in both Nashville, Tenn., and Austin, Texas.<\/p>\n<p>At the opposite end, and despite significant increases in its freelancing workforce, Fresno, Calif., is yet to catch up in terms of the liveliness of its networking scene.[\/vc_column_text][vc_raw_html css=&#8221;&#8221;]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[\/vc_raw_html][\/vc_tta_section][vc_tta_section title=&#8221;Kickstarter Success Rate&#8221; tab_id=&#8221;1761303970581-2c7e1a5d-7e8e&#8221;][vc_column_text css=&#8221;&#8221;]While the success rate for projects funded through Kickstarter has varied over time, the\u00a0<a href=\"https:\/\/www.kickstarter.com\/help\/stats\" target=\"_blank\" rel=\"nofollow noopener\">current average stands at 42% to 43%<\/a>,\u00a0which makes the performances of Nashville, Tenn., stand out even more. The city has a 53% rate and has amassed some 4,803 Kickstarter projects since the platform\u2019s inception.<\/p>\n<p>For years, Nashville has been a meeting place for many creative types, as well as producers and marketers from across the region who are highly skilled at connecting with a dedicated fanbase. Here, the\u00a0<a href=\"https:\/\/www.thoughtleaders.io\/blog\/is-direct-to-fan-engagement-the-future-of-creator-success\" target=\"_blank\" rel=\"nofollow noopener\">\u201cDirect-to-Fan\u201d model<\/a>\u00a0(first used by those in the music industry) is a natural fit for crowdfunding, allowing creators to leverage their existing networks to secure early funding and generate buzz.<\/p>\n<p>Furthermore, by relying on subscriptions, email newsletters, private communities, and digital marketplaces, the aim is to shift away from algorithm dependency and get your products and services in front of a select, interested audience.<\/p>\n<p>Tied with Nashville in second place, Austin, Texas, also has a 53% success rate for its Kickstarter-funded projects, although its total since the platform\u2019s launch is higher at nearly 6,000 projects. In this case, the city\u2019s high concentration of engineers, developers and tech entrepreneurs, along with its annual South by Southwest (SXSW) festival \u2014 which acts as a launchpad for various hardware, software and gaming projects \u2014 provides highly favorable conditions for Austin Kickstarter projects to succeed.[\/vc_column_text][vc_raw_html css=&#8221;&#8221;]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[\/vc_raw_html][\/vc_tta_section][vc_tta_section title=&#8221;Education&#8221; tab_id=&#8221;1761304046607-10291c9c-8533&#8243;][vc_column_text css=&#8221;&#8221;]With an educational attainment rate of 44%, Austin, Texas, tops the ranking for this indicator among cities with fewer than 1 million residents.\u00a0Notably, the city acts as one of the main economic engines of the South, home to the likes of Tesla, Google, Meta and Apple.<\/p>\n<p>The presence of so many established companies creates massive demand for highly skilled labor, particularly in software, AI and hardware engineering. Here, the educational infrastructure that meets this demand includes higher-learning institutions, like the University of Texas at Austin, St. Edward\u2019s University and Concordia University Texas. And, thanks to the local economy\u2019s focus on tech, research and advanced manufacturing, many Austin graduates are strongly incentivized to stay in the area after completing their studies.<\/p>\n<p>As for Nashville, Tenn., other than its reputation as a hub for creatives of all kinds, the city also enjoys significant inflows of students and young professionals due to its music and entertainment scene.[\/vc_column_text][vc_raw_html css=&#8221;&#8221;]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[\/vc_raw_html][vc_column_text css=&#8221;&#8221;]Looking at changes in educational attainment rates between 2019 and 2024, Western cities are the clear standouts. Chief among them, Arizona\u2019s Mesa and Tucson have both witnessed increases of about 24% to 25% during that period, although it\u2019s worth noting that their overall pool of highly educated residents includes less than one-quarter of their populations.<\/p>\n<p>To that end, Southern entries display lower, but still robust growth rates across five years with the added benefit of much higher educational attainment baselines. For example, Nashville, Tenn., and Charlotte, N.C., have increased their pools of highly educated professionals by 17% to 18% with more than one-third of their residents now having at least a bachelor\u2019s degree. Not far behind, the talent pool in Austin, Texas, grew by 15% with some 44% of its population being college-educated for the largest share among the cities that made our ranking.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=&#8221;Startup Ecosystem&#8221; tab_id=&#8221;1761304153911-d9afb97d-4274&#8243;][vc_column_text css=&#8221;&#8221;]Across the three indicators included in our overview of each city\u2019s startup ecosystem, Austin, Texas, comes forward as one of the best performers. The Texas capital snatched first place for the highest percentage of new businesses within its economy (12%), in addition to recording the most noteworthy growth in that regard among the entries on our list with a 30% hike between 2019 and 2023.<\/p>\n<p>Here, local names that have demonstrated staying power include the likes of fintech and real estate company Homeward, which addresses funding needs for Austin\u2019s highly competitive housing market, as well as Jasper \u2014 a generative AI content platform founded in 2021 that acts as a magnet for high-skill engineering talent.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-46061 size-full\" src=\"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Startup-ecosystem_Medium-2.png\" alt=\"Startup ecosystem_Medium\" width=\"1534\" height=\"1437\" srcset=\"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Startup-ecosystem_Medium-2.png 1534w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Startup-ecosystem_Medium-2.png?resize=150,141 150w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Startup-ecosystem_Medium-2.png?resize=320,300 320w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Startup-ecosystem_Medium-2.png?resize=768,719 768w, https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2025\/11\/Startup-ecosystem_Medium-2.png?resize=1153,1080 1153w\" sizes=\"auto, (max-width: 1534px) 100vw, 1534px\" \/><\/p>\n<p>Mesa, Ariz., also manages to find its way into the top three for two of the indicators, ranking third for new business density (11%) and second for the increase in new companies. In particular, Persefoni AI is a major player in the region\u2019s efforts to develop sustainable technology, while Clutch Solutions supports a network of semiconductor and IT infrastructure companies within the city.<\/p>\n<p>Finally, in terms of new business survival rates, Indianapolis leads, albeit by a small margin, ahead of the likes of Nashville, Tenn., and Tucson, Ariz. Plus, new companies in Tucson and Indianapolis are aided not just by the overall lower costs of doing business, but also from higher learning institutions that are more in sync with local labor needs. Specialization also plays a role as it allows for the creation of strong support communities for certain industries \u2014 namely, health care and fintech in Nashville, and life sciences and advanced manufacturing in Indianapolis. This, in turn, makes those cities even more desirable as a destination for top talent and business, creating a virtuous cycle.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][vc_column_text css=&#8221;&#8221;]\n<h2>Methodology<\/h2>\n[\/vc_column_text][vc_raw_html css=&#8221;&#8221;]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[\/vc_raw_html][\/vc_column][\/vc_row]\n<\/div>","protected":false},"excerpt":{"rendered":"<p>In the U.S. and across the globe, 2021 marked the year of the most generous seed funding sprees. Since then, rising interest rates, supply chain disruptions, and inflation surges have all contributed to a more targeted and cautious approach from venture capital holders, who are now targeting AI, software as a service (SaaS), fintech and health tech startups. That tightening of capital means that startups must now rely more heavily on fundamental business health and the strength of their local ecosystems.<\/p>\n","protected":false},"author":56,"featured_media":45895,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false},"categories":[8641,2256,4014,39],"tags":[],"class_list":["post-45504","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercialcafe-studies","category-coworking","category-featured","category-office","wpautop"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Best U.S. Cities for Startups (2025) | CommercialCafe<\/title>\n<meta name=\"description\" content=\"The map of the startup ecosystem is currently being redrawn as both investors and founders are adapting to a new economic reality \u2014 one that\u2019s unlikely to sustain previous levels of funding.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialcafe.com\/blog\/best-us-cities-for-startups\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Best Cities for Startups: Phoenix &amp; 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