Connecticut is gaining ground as a place to live, work and do business, moving up five positions from 28th place in 2025 to 23rd nationally.
Connecticut performed particularly well in areas that can play an important role in attracting and retaining businesses and employees, ranking fourth nationally for education and fifth for quality of life.
Connecticut Business Rankings Show Continued Improvement
CNBC’s annual rankings evaluate states across a broad range of factors that influence economic competitiveness and the ability to attract businesses, investment and talent.
Connecticut’s move to 23rd overall reflects progress across several categories. The state’s business friendliness ranking improved to 21st, while other measures continued to recover from the comparatively low rankings Connecticut received in previous years.
The adoption of fiscal guardrails by state lawmakers in 2017 marked an important turning point. Those policies were designed to improve budget discipline and strengthen the state’s long-term financial position.
Connecticut Business and Industry Association President and CEO Chris DiPentima has credited that improved fiscal discipline with helping strengthen Connecticut’s competitive standing. According to DiPentima, the 2026 results represent the state’s strongest performance in the two decades CNBC has conducted the survey.
Connecticut entered the 2026 rankings with a population of approximately 3.69 million people. The state recorded GDP growth of 1.8% during the first quarter of 2026, while its unemployment rate stood at 5.1% in May.
For office tenants in particular, understanding individual submarkets, available properties, rental rates, lease structures and incentives can help companies manage occupancy costs while positioning themselves in locations that support their business objectives.
Education Remains a Major Connecticut Advantage
One of Connecticut’s strongest showings in the 2026 rankings was education, where the state climbed from fifth to fourth nationally.
CNBC’s education category considers factors including test scores, class sizes, education spending, access to higher education and long-term state support for colleges and universities.
A highly educated workforce can be a significant advantage for companies evaluating potential locations, particularly businesses in industries that depend on specialized skills, research, technology and professional talent.
Connecticut’s concentration of colleges and universities, combined with its proximity to the greater New York and Boston markets, gives employers access to a substantial regional talent pool.
For commercial real estate decision-makers, workforce availability is often an important component of site selection. Companies considering an office relocation or expansion increasingly evaluate not only the building itself, but also whether a location can help them recruit and retain employees.
Quality of Life Ranks Among the Nation’s Best
Connecticut also placed fifth nationally for quality of life.
The state received strong marks for several health and safety measures, including positive health outcomes, comparatively low illicit drug use, high rates of dental care and one of the lowest violent crime rates in the country.
Quality of life has become increasingly relevant to corporate location decisions as employers compete for workers and consider where employees want to live.
Connecticut’s combination of suburban communities, transportation access, educational resources and proximity to major metropolitan areas can offer companies an alternative to locating directly within New York City while maintaining access to the broader tri-state workforce and business community.
This can be especially relevant in Fairfield County, where businesses have access to Metro-North service, Interstate 95, the Merritt Parkway and a range of communities offering both commercial centers and residential amenities.
What Connecticut’s Improving Business Ranking Means for Commercial Real Estate
Connecticut’s rise in the national rankings does not eliminate the challenges businesses face, but it provides another indication of the state’s changing economic position.
For Fairfield County in particular, Connecticut’s strengths in education and quality of life complement many of the region’s existing advantages: access to New York City, an educated workforce, established corporate communities and a diverse inventory of office and commercial properties.
As companies reconsider workplace strategies, right-size their offices, relocate or evaluate expansion opportunities, broader economic conditions are only one piece of the decision.
Local market knowledge remains critical.
Choyce Peterson represents companies throughout Connecticut and beyond and evaluates their commercial real estate options, compares locations, understands market conditions and negotiates lease terms that support their long-term business goals.
Connecticut’s upward placement in CNBC’s Top States for Business rankings is an encouraging sign of progress—and another factor businesses may consider when determining where to invest, grow and locate their employees.
Note: Some background information in this article was reported by The Capitol Dispatch. CNBC’s 2026 Top States for Business rankings and publicly available government economic data were also referenced.
