Tax incentives, transportation networks, and industrial infrastructure once dominated the criteria for choosing where businesses should locate. But that equation is changing rapidly. Today, companies are asking a different question: Where do people want to live? Where can employees enjoy a safe, healthy, and family-friendly lifestyle? The answers are increasingly shaping corporate decisions across the United States.
According to CNBC’s “America’s Top States for Business 2026” rankings, Vermont has been named the nation’s best state for business for the sixth consecutive year. The 2026 edition also marks the 20th anniversary of CNBC’s annual study, with Quality of Life receiving greater weight in the rankings than ever before.
As the post-pandemic workplace continues to evolve and more employers encourage workers to return to the office, companies have recognized that attracting and retaining skilled talent requires more than competitive salaries. A high quality of life has become a critical factor. New York-based site selection consultant Tom Stringer says the trend has reversed traditional thinking: instead of people moving to where the jobs are, businesses are increasingly moving to where people want to live.
This year, Quality of Life accounted for 11.6 percent of the overall score, up from about 10 percent previously. The category evaluates factors such as crime rates, healthcare, air quality, childcare affordability and availability, civil rights protections, and reproductive rights.
Vermont’s strongest advantage is the health of its residents. According to the United Health Foundation, 54 percent of Vermonters rated their health as “very good” or “excellent” in 2024—the highest percentage in the nation. The state also enjoys relatively low crime rates and a strong reputation for protecting civil rights. However, homelessness remains a significant challenge. More than 3,000 people were experiencing homelessness in January 2025 despite the state’s population of just 644,000. To address the issue, Governor Phil Scott has signed legislation allocating approximately $83 million to strengthen Vermont’s shelter system.
Maine, which ranked second, boasts the nation’s lowest violent crime rate. However, the state continues to struggle with drug-related deaths and mental health challenges.
New Jersey emerged as one of this year’s standout performers. Strong rankings in healthcare, worker protections, reproductive rights, and public safety earned the state an A+ grade. It also has one of the nation’s lowest premature death rates, although expanding healthcare capacity remains an ongoing challenge.
Meanwhile, Minnesota was recognized as one of the country’s leaders in protecting reproductive rights. Recent research suggests that states with more restrictive abortion laws are seeing higher rates of outmigration, particularly among younger adults and single households, creating broader economic and workforce implications.
The remaining states in this year’s Top 10 are Connecticut, New Hampshire, Hawaii, Virginia, North Dakota, Massachusetts, and Nebraska.
Each state brings unique strengths to the table. North Dakota leads the nation in childcare availability, Nebraska has the country’s lowest drug overdose death rate, Massachusetts remains the national leader in health insurance coverage, and Virginia continues to rank among the safest states for violent crime.
CNBC’s 2026 rankings highlight a fundamental shift in how states compete for business investment. Tax policies and infrastructure remain important, but they are no longer enough on their own. Increasingly, companies are choosing locations where employees can live healthier, safer, and more fulfilling lives while raising their families.
The message is clear: in today’s America, businesses are no longer simply chasing jobs—they are chasing people.
