You may not think of Olympia as a hub of innovative technology. 

You may not know that the city’s technology sector grew faster than that of any city in the United States from 2018 to 2023. You may also not be aware that the city is among the “most equal” in the country, meaning that income inequality is less than in most other cities.

For those and other reasons, the Milken Institute ranks the city No. 8 on its prestigious 2025 Best Performing Cities list, making it the shining star of Washington state. It ranked No. 9 last year.

“Olympia’s high-tech sector truly stands out,” the report says, noting that growth in the city’s professional services and information technology sectors outpaced that of the nation as a whole. “Olympia’s best-in-nation five-year high-tech GDP growth has been primarily driven by the computer systems design, software publishing, and data processing industries, which jointly represent 35.5% of Olympia’s employment.”

The Milken Institute releases the list every year based on numerous economic measurements, including job and wage growth and affordable housing options. The latter in fact, is Olympia’s weak point: “Housing shortages are severe in cities throughout the state of Washington, and Olympia faces some of the worst housing affordability conditions,” the report says. “A 2022 report estimated that Olympia’s stock of housing units was 6.4 percent below what’s needed to meet demand.”

The report ranks Seattle No. 25, one spot behind last year, primarily because of its lack of affordable housing. Many larger cities are struggling with the same issue. 

“The lack of high growth from the country’s larger cities may be related to the housing affordability challenges faced by many populous metro areas,” the report notes.

Raleigh, N.C., finished No. 1, followed by Ogden, Utah, and Salt Lake City. Wenatchee finished No. 14 in the small cities category.