GoDaddy Unveils 2026 Most Entrepreneurial Cities: A New Era of Small Business Growth
GoDaddy Inc. (NYSE: GDDY) has released its highly anticipated 2026 list of America's Most Entrepreneurial Cities, with San Antonio, Texas, emerging as the leading hub for small business growth. This year's rankings are particularly noteworthy as GoDaddy partnered with Zillow (Nasdaq: Z, ZG) for the first time, incorporating housing data to provide a richer context for the entrepreneurial landscape in these cities.
1. A Shift in Entrepreneurial Landscape
The 2026 rankings highlight a significant trend: small business growth is no longer restricted to traditional metropolitan centers. Instead, it is expanding into a diverse array of cities, signifying a broader geographical distribution of entrepreneurial success. Alexandra Rosen, GoDaddy's small business economist, stated, "The footprint of American entrepreneurship is shifting deeper into non-traditional places." This evolution underscores the changing dynamics of where successful business ventures can thrive, suggesting that entrepreneurs can establish their ventures in various locales, from major cities to smaller towns.
2. Zillow's Insights on Housing Trends
The collaboration with Zillow has provided valuable housing market insights that complement GoDaddy's data on small business growth. The GoDaddy Small Business Research Lab determined the rankings based on the cities with the highest rate of business growth over the past year. Zillow's data contributes to understanding how housing market conditions can impact entrepreneurship, analyzing factors such as typical home values, rent prices, and market conditions.
Mischa Fisher, Chief Economist at Zillow, emphasized the correlation between a robust housing market and local economies, stating, "When housing is attainable and plentiful, entrepreneurs feel more confident putting down roots." This relationship is especially relevant in the context of the post-pandemic landscape, where remote work flexibility has reshaped the preferences of many individuals regarding where to live and work.
3. 2026 Most Entrepreneurial Cities Rankings
| Rank | City | Growth YoY | New Businesses Created | Typical Home Value | Typical Rent | Market Heat Index |
|---|---|---|---|---|---|---|
| 1 | San Antonio, TX | 11% | 9,232 | $278,644 | $1,398 | 50 - Neutral Market |
| 2 | Miami, FL | 8% | 36,565 | $472,249 | $2,683 | 38 - Buyer's Market |
| 3 | Milwaukee, WI | 8% | 2,816 | $382,830 | $1,540 | 85 - Strong Seller's Market |
| 4 | El Paso, TX | 6% | 1,029 | $231,010 | $1,471 | 54 - Neutral Market |
| 5 | Portland, OR | 5% | 4,399 | $547,023 | $1,789 | 67 - Seller's Market |
| 6 | Fresno, CA | 4% | 757 | $408,560 | $1,998 | 59 - Seller's Market |
| 7 | Bronx, NY | 4% | 1,073 | $717,750 | $3,406 | 77 - Strong Seller's Market |
| 8 | Tampa, FL | 4% | 3,798 | $357,226 | $1,997 | 45 - Neutral Market |
| 9 | Albuquerque, NM | 3% | 1,277 | $349,292 | $1,485 | 60 - Seller's Market |
| 10 | Washington, DC | 3% | 2,590 | $579,216 | $2,375 | 67 - Seller's Market |
Key Takeaways from the Rankings
San Antonio leads the list with an impressive 11% growth and the creation of over 9,000 new businesses. Its housing market is characterized by stability, with home values and rents below the national average, making it an attractive location for entrepreneurs. On the other hand, cities like Miami and Milwaukee illustrate varying conditions; Miami's housing market is a buyer's market with higher-than-average rents, while Milwaukee showcases a strong seller's market with a consistent rate of new business formation.
4. The Migration to the Sun Belt
Another key trend highlighted by the rankings is the migration of entrepreneurs towards Southern states. Texas, Florida, and New Mexico represent half of the top ten cities, showcasing the allure of the Sun Belt region. This trend is fueled by state policies, including the absence of personal income taxes in Florida and Texas, making these states appealing to new business owners.
Entrepreneur Anik Sahai, co-founder of Ethics Lab in Miami, shared insights on the South Florida entrepreneurial ecosystem, emphasizing its collaborative culture and innovative spirit. Such environments are crucial for fostering new ideas and attracting talent.
5. A New Perspective on Economic Opportunity
The findings from GoDaddy's report suggest that the traditional concept of "business hubs" is evolving. Washington, D.C., often viewed as a government-centric city, has made the top ten due to a surge in new business formations. Similarly, the Bronx's rise to prominence over Manhattan illustrates the diverse opportunities available across urban landscapes.
In conclusion, GoDaddy's 2026 Most Entrepreneurial Cities report marks a significant shift in the understanding of where and how businesses can thrive in the United States. With the integration of housing data from Zillow, the report offers a comprehensive view of the factors contributing to small business success in various markets, paving the way for future entrepreneurs to explore opportunities beyond conventional boundaries.
