Last week, Gov. Hochul and her GOP challenger, Rep. Elise Stefanik, sparred over affordability in New York.
To assess the Empire State’s level of affordability, they both turned to U.S. News & World Report’s annual Best States rankings, compiled annually for a decade. They were right to rely on the data. As former Mayor Mike Bloomberg says, “In God we trust. Everyone else, bring data.”
These Best States rankings focus on accountability and transparency. By measuring how a state is performing against its peer states, individuals, families and companies can determine whether a state is right for them.
The rankings also serve as a roadmap and benchmark. State leaders use these rankings to gain insights into a state’s performance and the areas that need improvement.
So how is New York truly doing? Beyond the one spotlight on affordability, an analysis of the data enables us to ask: are our best years ahead, or behind us?
To compile these rankings, U.S. News evaluates 50 states based on eight categories that draw on thousands of data points. The main categories are: 1) opportunity; 2) the economy; 3) infrastructure; 4) health care; 5) education; 6) crimes and corrections; 7) natural environment; and 8) fiscal stability.
For 2025, New York lands in the middle of the pack as the 22nd state overall on the list. This ranking places us behind most of our neighbors, including Massachusetts (9), Connecticut (15) and New Jersey (19).
A deeper look reveals that New York is at a concerning inflection point. As the fourth largest state in terms of population, with the third largest economy, New York has many important and positive attributes. But, if as former Deputy Mayor Dan Doctoroff once wrote that “the most important metric of a [region’s] health is population growth,” then New York State is sadly going in the wrong direction.
Over the last five years, New York has had the steepest decline in population measured both in terms of aggregate numbers and by percentage decline. Moreover, these fleeing New Yorkers are taking their pocketbooks with them, causing New York to lose the most money of any state. These numbers contrast with the high population inflow in Texas, Florida or North Carolina.
Within these rankings, New York ranks 49th for opportunity — which measures economic opportunity, affordability and equality. Being one place from the list’s bottom reflects the political tenor of the recent mayoral election as well as recent polls. The 5 Boro Institute survey from earlier this year showed that nearly 50% of respondents are considering whether to leave New York City, citing affordability as the main reason.
New York ranks 41st for its economy — which takes into account a state’s business environment, labor market and overall economic growth. New York’s large and diversified economy, enjoying high levels of venture capital investments, among other indicators, is the envy of many states. But it is also grappling with falling labor force participation rates, job growth slightly above the national average and a difficult business and regulatory environment.
As to the other categories, New York ranks 34th for its infrastructure, 24th for crime and corrections, and 17th for education. The state ranks in the top 10 for three categories: eighth for health care, sixth for its natural environment and third for fiscal stability.
As someone who has dedicated years to public service at both the city and state levels, I appreciate our Empire State’s tradition of striving for excellence. I also do not discount the great resilience New York has demonstrated in overcoming many past crises, including the fiscal crisis of the 1970s, the horror of 9/11, the 2007 Great Recession and Superstorm Sandy.
But the data suggests that New York is heading in the wrong direction. We need to start by asking the tough questions and assessing whether we are investing in the right ways. For instance, our state budget is now $100 billion — or about 60% — more than the state budget 10 years ago: how are we truly benefiting from these dramatic spending increases?
Over the course of the next few days we will be publishing charts on this in these pages, with additional accompanying charts online.
To paraphrase Alice in Wonderland: “If you don’t know where you’re going, any road will get you there.” We need to start to invest in the right path forward. By doing so, in this age marked by great mobility and highly competitive state environments, we can ensure that the best years for New York State continue to be ahead of us.
Gertler is CEO of U.S. News & World Report and a former CEO of Empire State Development.
