Real gross domestic product (GDP) increased in 44 states and the District of Columbia in the second quarter of 2026, according to the latest estimates from the U.S. Bureau of Economic Analysis (BEA). State-level growth varied considerably during the quarter, with real GDP growth ranging from a 4.0% annualized increase in New York to a 2.3% decline in West Virginia. The results point to continued regional differences in economic performance, with most states recording positive economic growth despite ongoing pressures from elevated prices and interest rates.
Nationally, real GDP, measured at a seasonally adjusted annual rate, increased by 2.2% in the second quarter of 2026, led by real estate and rental and leasing, information, durable goods manufacturing, and finance and insurance. The leading offsets were decreases in transportation and warehousing, retail trade, and nondurable goods manufacturing.
Regionally, real GDP increased in all eight regions between the first and the second quarters of 2026. Growth was slightly less compared to the previous quarter, with regional gains ranging from a 1.5% increase in the Rocky Mountain region to a 2.9% increase in the Mideast.
New York posted the strongest increase in real GDP during the second quarter, with growth led by the finance and insurance industry. Delaware and South Carolina tied for second, each recording a 3.5% growth rate. Minnesota and Utah followed, with each posting a 3.4% growth rate. At the other end of the spectrum, West Virginia, Wyoming, Alaska, North Dakota, Kansas, and Nebraska recorded declines in real GDP. Mining was the leading contributor to the decreases in West Virginia and Wyoming. The divergence across states highlights the importance of industry composition in shaping regional economic performance, particularly for states with greater exposure to energy and commodity-related activity.
Overall, the state GDP data show that economic growth remained broad-based in the second quarter, although the pace of growth varied significantly across regions. For the housing market, differences in state-level economic activity can have important implications for housing demand, as stronger local economies generally support household income and employment, while weaker economic conditions can weigh on housing activity.