Research Corner: NLC releases annual Sate of the Cities report
In This Section
CML Newsletter
July 21, 2026
By Maeve McHugh, CML municipal research analyst
The National League of Cities released their 2026 State of the Cities report, highlighting priorities from municipalities across the country. This report surveys mayors and councilmembers, analyzes speeches, and conducts public polling to compile data.
This year’s report highlights a continuing commitment to bolstering economic development, investing in infrastructure and addressing affordable housing shortages. Compared to NLC’s State of the Cities report in 2025, 3.5% fewer city leaders would rate their economic situation as “acceptable,” “good,” or “excellent,” down to 82% from 85%. Attracting businesses is a top priority for cities nationwide, though insufficient outside investment (federal and private investment) and social infrastructure (child care and inequality) remain concerns (see figure 2).
Nationwide, municipal leaders identified transportation as a key area of focus, where three of the top five infrastructure priorities fall in this category: parking lots, bridges, and public transit. Along with transportation-related priorities was public utility systems, including broadband and power. Each of these areas highlight indicate concerns about vulnerability during natural disasters or extreme weather events.
Finally, attainable housing continues to be a top concern for city leaders. NLC’s report indicates 55% of respondents consider housing attainability in their city to be “poor” or “very poor.”
You can download and read the report here to read more about how cities are turning their priorities into accomplishments. The report includes resources and strategies to address these challenges.
Figure 1. Source: National League of Cities State of the Cities Report 2026
Figure 2. Source: National League of Cities State of the Cities Report 2026
Figure 3. Source: National League of Cities State of the Cities Report 2026
This year’s report highlights a continuing commitment to bolstering economic development, investing in infrastructure and addressing affordable housing shortages. Compared to NLC’s State of the Cities report in 2025, 3.5% fewer city leaders would rate their economic situation as “acceptable,” “good,” or “excellent,” down to 82% from 85%. Attracting businesses is a top priority for cities nationwide, though insufficient outside investment (federal and private investment) and social infrastructure (child care and inequality) remain concerns (see figure 2).
Nationwide, municipal leaders identified transportation as a key area of focus, where three of the top five infrastructure priorities fall in this category: parking lots, bridges, and public transit. Along with transportation-related priorities was public utility systems, including broadband and power. Each of these areas highlight indicate concerns about vulnerability during natural disasters or extreme weather events.
Finally, attainable housing continues to be a top concern for city leaders. NLC’s report indicates 55% of respondents consider housing attainability in their city to be “poor” or “very poor.”
You can download and read the report here to read more about how cities are turning their priorities into accomplishments. The report includes resources and strategies to address these challenges.
Figure 1. Source: National League of Cities State of the Cities Report 2026
Figure 2. Source: National League of Cities State of the Cities Report 2026
Figure 3. Source: National League of Cities State of the Cities Report 2026