U.S. Economic Growth Varied by State in Second Quarter of 2026

Real gross domestic product (GDP) rose in 44 states and the District of Columbia during the second quarter of 2026, according to estimates from the U.S. Bureau of Economic Analysis (BEA). Growth rates varied significantly, with New York experiencing a 4.0% annualized increase while West Virginia saw a decline of 2.3%. Despite high prices and interest rates, most states continued to show positive economic growth, reflecting ongoing regional differences in economic performance.

At the national level, real GDP, seasonally adjusted to an annual rate, increased by 2.2% in the second quarter. Key sectors driving this growth included real estate, rental and leasing, information, durable goods manufacturing, and finance and insurance. Conversely, declines were noted in transportation, warehousing, retail trade, and nondurable goods manufacturing.

Regionally, all eight U.S. regions reported GDP increases between the first and second quarters of 2026, though growth was somewhat slower than in the previous quarter. Increases ranged from 1.5% in the Rocky Mountain region to 2.9% in the Mideast.

New York led the states with a significant GDP increase, primarily attributed to the finance and insurance sector. Delaware and South Carolina both achieved a 3.5% growth rate, followed closely by Minnesota and Utah, each at 3.4%. In contrast, West Virginia, Wyoming, Alaska, North Dakota, Kansas, and Nebraska experienced declines in real GDP, with mining being the main contributor to the downturns in West Virginia and Wyoming. This disparity in state performances underscores the impact of industry composition on regional economic outcomes, particularly in states reliant on energy and commodities.

Overall, while state GDP data indicated broad-based economic growth in the second quarter, the rate of growth differed considerably among regions. These fluctuations in state economic activity can affect the housing market, as areas with stronger economic performance typically see increased household income and employment, which positively influences housing demand.