Delaware Ranks Middle of the Pack in CNBC’s Top States for Business 2025

By Kelly Basile
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CNBC’s rankings for their 2025 Top States for Business came out today and Delaware moved up from 34th to 29th. The First State moved up in 6 categories—Economy, Cost of Doing Business, Business Friendliness, Technology and Innovation, Access to Capital, and Cost of Living—but fell in two categories, Infrastructure and Workforce. When it comes to Education and Quality of Life, Delaware saw no movement.

There are many forums that rank states and their competitiveness, all with areas weighted slightly differently and varying metrics factored into those scores. Therefore, it’s important to note that rankings from platforms like CNBC, CEO Magazine, Forbes, and others are nuanced. However, these rankings are what outsiders see. This, at times, can be their first impression of Delaware and what the state has to offer them as a resident, employee, or employer.

So, let’s dive into the data.

THE GOOD NEWS
When you pour into the methodology of how the category rankings are determined, CNBC weighted Economy most heavily this year, and Delaware moved up from 10th to 4th. Analysts noted that states’ economic development marketing pitches were focusing most on touting economic strengths amid fears of recession, which led to this category being the most important. Factors measured include fiscal conditions (GDP growth, job growth, state’s credit ratings, budgets’ spending, revenue and reserves, and pension obligations), residential real estate market health (inventory, price appreciation, affordability, property taxes, foreclosure activity, etc.), and corporate makeup (major corporation headquarters and new business formations).

Delaware’s economy ranked strong due to its AAA credit rating, a sizable Rainy Day Fund ($365.4 million), and the Budget Stabilization Fund, which currently stands at $469.2 million, but is increasingly at risk as spending pressures grow. Although GDP growth was flat in Q1 2025, the state’s job market remains relatively healthy with a 4.0% unemployment rate. Delaware’s historically strong corporate presence (it ranked 2nd in the country for business applications per capita in 2023) also contributed to its high ranking.

As inflation persists, the Cost of Living category did increase in value this year and Delaware performed well, placing in the top 10 at 9th. The analysis acknowledges that companies and workers are seeking states where prices are stable and daily living is affordable, especially in an inflationary economy. Delaware stood out with relatively moderate property taxes. However, housing affordability has become a growing concern. Over the past four years, average home prices in Delaware have surged by 56.2%—outpacing the national average increase of just over 50%. In May 2025, the median sold price hit a record high of $399,000. Despite this sharp rise, Delaware remains more affordable than many neighboring states.

Workforce continues to play a big role in scores and rankings, and while Delaware fell from 7th to 11th, the state still scored high (213 out of a possible 335 points) in this category. This is due to its strong pipeline of educated and skilled workers and ongoing investment in talent development, through initiatives like Executive Order #1 and the Delaware Pathways program. Elements factored into this score include the concentration of STEM workers, percentage of workers with college degrees (including associate degrees and industry-recognized certifications), net in-migration of educated and skilled workers, availability of training programs, right to work laws, and worker productivity based on economic output per job. As a small state of neighbors, Delaware is bringing together government, education, and the business community, and continues to support a workforce ecosystem that’s responsive to current and future employer needs. 

SOME CAUTIONARY TALES
Delaware fell from 23rd to 31st under the Infrastructure category, which was the second most weighted score contributing to overall rankings. Factors measured here include power access and reliability, water and wastewater utilities, broadband connectivity, the state’s overall transportation system, and the time it takes to commute to work. Another factor considered is access to markets through measuring the population living within 500 miles of each state. This includes land, office, and industrial space availability, the number of ‘shovel ready’ sites, and climate change sustainability. One of the largest growing sectors in Delaware is manufacturing, and with reshoring and the rebuilding of supply chains, the analysis rightly points out infrastructure’s important roles in supporting growth.

When it pertains to the Cost of Doing Business—one of our members’ top concerns as reported in our 2024 annual survey—the examination measured each state’s ability to ease business expenses (including incentives and tax breaks), tax competitiveness, wage and utility costs, and more. Here, Delaware received a D+ grade but rose from 44th to 41st. Much of this pertains to the state’s high corporate and individual income taxes (of course this is offset by attractive sales, property, and unemployment insurance taxes). The most recent legislative session saw a personal income tax bracket proposal that would have created three new top tier tax brackets. This came at a time when many Delawareans were already facing rising inflation and economic uncertainty, with higher property taxes also set to take effect.

Delaware moved up slightly in this year’s Business Friendliness ranking, from 46th to 43rd, but still landed in the bottom tier with a D+ grade, signaling there’s more work to be done. Delaware’s renowned corporate franchise remains an important asset, but the state faces challenges related to regulatory complexity and land use policies. Combined with ranking 50th for corporate taxes and 42nd for individual income tax by the Tax Foundation, Delaware must consider strategies around expediting permitting and approval processes, controlling wage and utility costs, supporting emerging industries, and protecting incentives and tax breaks designed to reduce business costs. 
 
BUILDING ON STRENGTH, FACING CHALLENGES TOGETHER
Many of these results are encouraging and reflect what Delaware’s business community has long known: our state is home to a strong economic foundation, a resilient workforce, and an environment where businesses and innovation can thrive.

While appearing as mere data points, taking a deeper look into these rankings reveals barriers to growth, potential factors that could keep businesses from choosing to relocate here, and challenges families and workers are facing across the state. Issues like workforce availability, education, housing affordability, infrastructure, and economic stability continue to weigh heavily on Delaware’s future trajectory. Our state’s competitive position will depend on our collective willingness to confront these realities head-on.

We at the Delaware State Chamber believe in the importance of a strong, vibrant private sector to create jobs and increase prosperity for all Delawareans. As bipartisan advocates, we work to support policies that promote economic growth and business success. By acting as a unified voice for business, we’re committed to leading the conversations that can address Delaware’s biggest challenges with practical, forward-thinking solutions.

Our improvement in this year’s CNBC rankings is a step forward, but it also serves as a reminder—and a tool—that we can do more.

A SUMMARY OF DELAWARE AND OUR NEIGHBOR’S RANKINGS

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