This Texas city was just named the most entrepreneurial of 2026—and it’s not Austin

Known for affordable housing and small businesses, this city is fueling entrepreneurship, according to a new index.

While San Antonio may have lost in the NBA Finals, it just won in a different category.

GoDaddy recently named San Antonio as the No. 1 most entrepreneurial city in the U.S. The annual list is compiled by GoDaddy Small Business Research Lab, which tracks year-over-year growth of microbusiness expansion and the number of businesses created in 2025. 

This year, GoDaddy partnered with Zillow to include housing market data including 2026 home values, rent prices, and Market Heat Index—although these metrics were not taken into consideration when determining city ranks. 

The inclusion of this data puts a spotlight on the importance of affordability. More entrepreneurs are taking residential factors into consideration when thinking about where to stand up their businesses. 

“A thriving local economy and a thriving housing market tend to go hand in hand,” Zillow chief economist Mischa Fisher said in a press statement. “When housing is attainable and plentiful, entrepreneurs feel more confident putting down roots and businesses find it easier to attract and keep talent.”

According to this year’s GoDaddy report, San Antonio demonstrated an 11 percent year-over-year growth in microbusinesses, which is defined as any entity that has its own website or domain name, between August 2019 and March 2026. Last year, 9,232 businesses were created. 

“If you are looking to start a business, San Antonio provides a clean slate where your capital goes further without forcing you to compromise on resources like digital infrastructure or community engagement,” Alexandra Rosen, GoDaddy’s small business economist told Inc. 

“Our data shows that for every entrepreneur who launches a new business in a community, five new local jobs are created at the county-level—driving an outsized economic impact for the entire San Antonio community,” Rosen added. 

How San Antonio’s housing market impacts entrepreneurship

In terms of residential data, the typical home value for the Alamo City was $278,644 compared to the national average at $366,712. Typical monthly rent was at approximately $1,398, nearly $600 below the national average of $1,930. These statistics made San Antonio a top-destination for those looking to “build a business and a life simultaneously,” Rosen said. 

Zillow’s “Market Heat Index,” helps buyers and renters better understand the supply and demand in a given area. Per the index, San Antonio is considered a “neutral market.”

What entrepreneurs are drawn to San Antonio

“San Antonio absolutely is an entrepreneurial city on the rise, and I’m happy to see it being recognized externally,” said Joseph Broschak, professor of management and department chair at The University of Texas at San Antonio, Alvarez College of Business.

“In the time I’ve been here I’ve witnessed a tremendous energy among founders and business owners, and significant growth in the entrepreneurial ecosystem,” he added. 

Broschak says this entrepreneurial energy comes down to San Antonio not being heavily reliant on large corporations for economic growth. The city is home to Valero Energy, USAA, iHeartMedia, H-E-B Grocery Company, and Rackspace Technology. 

“The lack of a sizable number of large corporations means that there is a great deal of founding and growth by small businesses,” he said. 

A “very stable population” of workers also makes San Antonio an attractive spot for start-up companies, Broschak added. 

Texas, Florida, and New Mexico were well-represented among the list, accounting for almost half of the cities on the index, including El Paso, Miami, Tampa, and Albuquerque. These regions, specifically Texas and Florida, are considered highly attractive among entrepreneurs for having no state personal income taxes. 

Some of the other high-ranking cities among the list include Milwaukee, Portland, Fresno, and Washington D.C.

“The footprint of American entrepreneurship is shifting deeper into non-traditional places,” Rosen said in a statement. “Whether it’s a traditional storefront with a digital presence or an online side hustle, entrepreneurs are sustaining momentum and showing there’s growing opportunity in every part of the country.”

This post originally appeared at inc.com.

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