Have you ever wondered what drives the economy in each state? In many cases, the largest industry is either real estate or manufacturing.

A recent graphic from Markets in a Minute, created by Visual Capitalist’s Jenna Ross in collaboration with Terzo, showcases the industry contributing the most to GDP in each state.

The Biggest Industry Ranking

Real estate is the backbone of the economy in more than half of the states. This is primarily because the Bureau of Economic Analysis considers homeowners as landlords renting to themselves, including the rental value in GDP calculations. If this value were excluded, a rise in homeownership would actually lead to a decrease in GDP.

Additionally, the real estate sector encompasses rents paid by tenants, property taxes, construction, remodeling, and brokers’ fees.

Source: U.S. Bureau of Economic Analysis. Data for the 2024 calendar year. Some industry names have been shortened, including real estate; mining, quarrying, and oil and gas extraction; federal civilian and state and local government; and professional, scientific, and technical services.

Manufacturing ranks second, being the largest industry in 13 states. This sector’s strength is especially notable in the Midwest and South, owing to its long-standing history, ample land availability, and government support.

Rare Economic Leaders

Beyond real estate and manufacturing, some industries dominate the GDP in fewer states.

For example, finance and insurance lead in New York, Delaware, Nebraska, and South Dakota. Delaware is a hub for publicly traded companies due to its favorable corporate laws and business-friendly environment. South Dakota attracts financial services with its advantageous tax structure and trust laws that can protect families from inheritance taxes indefinitely.

Mining and oil and gas comprise the largest economic sector in three states. North Dakota is the nation’s third-largest crude oil producer, while Wyoming and West Virginia are the top two coal producers in the country.

The government sector drives the GDP in Washington, D.C., and Oklahoma. Additionally, professional and technical services in Massachusetts, information technology in Washington, and transportation and warehousing in Alaska rank as the top industry in their respective states.