Posted on 08/01/2025 8:57:16 PM PDT by SeekAndFind
Ever wondered what fuels each state’s economy? In most cases, the biggest industry is either real estate or manufacturing.
This Markets in a Minute graphic, via Visual Capitalist's Jenna Ross, in partnership with Terzo, highlights the industry contributing the most to GDP in every state.
Real estate powers the economy in over half of states. This is largely because the Bureau of Economic Analysis treats homeowners as landlords renting to themselves, and includes the rental value in GDP. If economists did not include this value, a jump in the homeownership rate would cause GDP to drop.
On top of this, the real estate industry includes rent paid by renters, property taxes, construction, remodeling, and brokers’ fees.
| State/District | Biggest Industry |
|---|---|
| Alabama | Manufacturing |
| Alaska | Transportation & Warehousing |
| Arizona | Real Estate |
| Arkansas | Manufacturing |
| California | Real Estate |
| Colorado | Real Estate |
| Connecticut | Real Estate |
| Delaware | Finance & Insurance |
| District of Columbia | Government |
| Florida | Real Estate |
| Georgia | Real Estate |
| Hawaii | Real Estate |
| Idaho | Real Estate |
| Illinois | Real Estate |
| Indiana | Manufacturing |
| Iowa | Manufacturing |
| Kansas | Manufacturing |
| Kentucky | Manufacturing |
| Louisiana | Manufacturing |
| Maine | Real Estate |
| Maryland | Real Estate |
| Massachusetts | Professional & Technical Services |
| Michigan | Manufacturing |
| Minnesota | Real Estate |
| Mississippi | Manufacturing |
| Missouri | Real Estate |
| Montana | Real Estate |
| Nebraska | Finance & Insurance |
| Nevada | Real Estate |
| New Hampshire | Real Estate |
| New Jersey | Real Estate |
| New Mexico | Real Estate |
| New York | Finance & Insurance |
| North Carolina | Manufacturing |
| North Dakota | Mining, Oil & Gas |
| Ohio | Manufacturing |
| Oklahoma | Government |
| Oregon | Real Estate |
| Pennsylvania | Real Estate |
| Rhode Island | Real Estate |
| South Carolina | Real Estate |
| South Dakota | Finance & Insurance |
| Tennessee | Manufacturing |
| Texas | Real Estate |
| Utah | Real Estate |
| Vermont | Real Estate |
| Virginia | Real Estate |
| Washington | Information |
| West Virginia | Mining, Oil & Gas |
| Wisconsin | Manufacturing |
| Wyoming | Mining, Oil & Gas |
Source: U.S. Bureau of Economic Analysis. Data for the 2024 calendar year. Some industry names have been shortened including real estate and rental and leasing; mining, quarrying, and oil and gas extraction; federal civilian and state and local government; and professional, scientific, and technical services.
In second place, manufacturing is the biggest industry in 13 states. Its prominence is heavily concentrated in the Midwest and the South thanks to the long history of the sector in some states, large plots of available land, and government support.
Outside of real estate and manufacturing, some industries are the top GDP driver in a much smaller number of states.
For instance, finance and insurance is the biggest industry in New York, Delaware, Nebraska, and South Dakota. Over half of publicly-traded U.S. companies incorporate in Delaware thanks to balanced and flexible corporate laws, a business-friendly environment, and a respected legal community. In South Dakota, financial services are drawn to the state’s business-friendly taxes and trust laws that can shield families from inheritance taxes indefinitely.
Mining and oil and gas creates the biggest economic output in three states. North Dakota is the third-largest crude oil producer in the country, while Wyoming and West Virginia are America’s top two coal producers.
The government is the biggest GDP driver in D.C. and Oklahoma. Lastly, professional and technical services (Massachusetts), information (Washington), and transportation and warehousing (Alaska) were the top industry in one state each.
And California Real Estate dominates Democrat Party land use policy.
The US is the largest landholder in the US. If they want to retire the debt, they should tokenize a portion of that real estate and offer dividends on the proceeds.
We live in WA. Wonder what an “Information” state encompasses.
This might be one of the dumbest statistical measures I've ever come across.
The BEA may as well consider each person's spending to be a byproduct of merely living, and consider "Oxygen Processing" as the top industry in every state.
>> This might be one of the dumbest statistical measures I’ve ever come across.
LOL! Glad to see I’m not the only one! Filed under “Pretty (but) Useless Commentary”.
Thank you for the explanation. Much appreciated.
It used to be that the leading industry in each state also allowed the state run edacation cutriculum was tailored to that industry.
I was going to raise the rent on myself so I’d have more income.
in MN it is probably manufacturing, more precisely medical device manufacturing.
Real estate, HA! Nice trick they pull to get that garbage info into the mainstream.
The calculation of owner-occupying house stems from economics: all factors of production yield something to the owner:interest (capital), wage (labor), profit (entrepreneurship) and rent (property). If someone own a house then they rent it out, they will get money (rent). If they live in the house, the house provides service to the owner in the amount similar to the rent they would have received if they rent it out.
How pitiful can a state be?
Oklahoma is the only state where “Government” is the biggest industry, not including DC which is not a state and should never be.
I sat for a jury pool in the Federal District Court in Muskogee last year. The judge was a friendly sort of fellow and wanted to get to know the jury pool asking where they were from and what did they do etc. There were only three of us in the pool of about 60 that were independent businessmen, a couple of ranchers and the rest were either retired military, retired civil service of some sort or active civil service. Must have been at least 40 of them employed or retired from the government and another 10 married to someone who was government affiliated.
It was the sixth time in my life I sat for a jury pool and was excused in the first round. I am wondering what I’ve done wrong? At the end of this year I will be excused based on age if I want to be and I do.
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