2026 State of the Cities report finds cities focused on economic growth while confronting housing, infrastructure and public safety challenges
LOUISVILLE, Ky. — The National League of Cities (NLC) today released its 2026 State of the Cities report, providing a national snapshot of the priorities, challenges and opportunities shaping America’s cities, towns and villages.
Released during NLC’s Summer Board & Leadership Meeting in Louisville, Ky., the report finds that while economic growth remains the top priority for local leaders, cities continue to face overlapping, long-term challenges related to housing affordability, infrastructure investment, workforce development and community wellbeing.
The report highlights how local leaders are working to attract businesses, revitalize downtowns and strengthen workforce pipelines while navigating limited federal investment and workforce shortages. It also finds that cities are taking increasingly holistic approaches to public safety and community wellbeing by connecting housing, mental health and public safety strategies.
Among the report’s key findings:
- Economic growth remains the top priority, but cities face real headwinds as they work to attract businesses, revitalize downtowns and build talent pipelines.
- Infrastructure and housing are the most urgent structural challenges facing communities nationwide.
- A looming infrastructure funding cliff is raising concerns, with 81 percent of mayors expecting the end of major federal programs, including the American Rescue Plan Act and the Infrastructure Investment and Jobs Act, to negatively impact local infrastructure investment.
- Housing affordability has become a widespread structural issue, with 75 percent of mayors citing high housing costs and 71 percent reporting insufficient housing supply.
- Public safety strategies continue to evolve, with cities increasingly linking public safety, mental health and housing through more comprehensive approaches to community wellbeing.
“Cities are engines of economic opportunity, innovation and community,” said Kevin Kramer, President, National League of Cities; Council Member, Louisville, Ky. “This year’s State of the Cities report illustrates how local leaders remain focused on creating jobs, expanding housing opportunities and investing in the infrastructure residents rely on every day. Communities face challenges, and local governments are leading with practical, collaborative and innovative solutions that strengthen neighborhoods and improve quality of life.”
The findings underscore the importance of strong federal-local and private-public partnerships to help communities sustain economic growth, modernize infrastructure, expand housing opportunities and improve quality of life for residents.
“The State of the Cities report underscores the resilience of local governments and the need for strong federal-local partnerships,” said Clarence E. Anthony, CEO and executive director of the National League of Cities. “Cities are confronting long-term challenges of housing affordability, aging infrastructure, workforce shortages and public safety, with determination and innovation. As federal funding evolves, local leaders deliver results, but sustained investment and partnership are critical to helping communities thrive. The State of the Cities report provides valuable insight into the issues local leaders are prioritizing today and underscores why strong federal-local partnerships remain essential to helping communities thrive.”
The report’s findings help inform NLC’s federal advocacy priorities, technical assistance programming and policy development throughout the coming year while serving as a resource for local leaders, policymakers, researchers and community partners.
The full 2026 State of the Cities report is available now.
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The National League of Cities (NLC) is the voice of America’s cities, towns and villages, representing more than 200 million people across the country. NLC works to strengthen local leadership, influence federal policy and drive innovative solutions. Stay connected with NLC on Facebook, X, LinkedIn and Instagram.
