Story by Eric Grossarth, City of Idaho Falls
Photo Courtesy Idaho Falls Downtown Development Corporation
Driving through Idaho Falls, you may have spotted a variety of new businesses in the area. From restaurants and local shops downtown to major players like the Idaho National Laboratory and our health care businesses, the city has firmly established itself as a center of growth and innovation over the past decade. Diverse industries, including technology, agriculture and energy, continue to propel this economic expansion, even amid today’s challenges.
The ongoing economic growth consistently draws national attention such as the Milken Institute Best-Performing Cities Index. This study provides an objective ranking of cities based on their economic performance. With its strong job and wage growth, Idaho Falls rose to the top of the list in 2021, 2023 and 2024. In 2025, Idaho Falls claimed third place, with a "thriving labor market fueled by the healthcare and education sectors and the Idaho National Laboratory."
“I love Idaho Falls because we have a close-knit, friendly community with a strong sense of belonging and neighborly support,” said Idaho Falls Economic Development and Government Affairs Administrator Catherine Smith. “We boast reasonable costs of living, great schools and safe neighborhoods, making it an ideal place for families. This city has a rich cultural scene, which also makes it an ideal location for businesses to relocate and attract employees.”
Smith has extensive experience in recognizing the economic vibrancy of Idaho Falls as the Executive Director of the Idaho Falls Downtown Development Corporation before coming to the City of Idaho Falls. Over the years, downtown's status has become a clear indicator of Idaho Falls' overall success. With its thriving restaurants, bars, entertainment venues and retail stores, downtown establishes Idaho Falls' position as a regional hub for southeast Idaho.
As the regional hub for healthcare, Idaho Falls has adapted to its growing population by expanding the area's offerings. Home to three hospitals, Idaho Falls offers top-tier medical professionals, treatments and facilities. The demand for healthcare jobs continues to rise, with approximately 410 job postings in the region at the end of 2024, as noted by the Idaho Department of Labor. In response to this need for healthcare professionals, the College of Eastern Idaho has experienced a 10.6% increase in enrollment, with programs in health physics, medical assisting, and surgical technology reaching full capacity.
Idaho Falls power, the municipal electrical utility of Idaho Falls, is dedicated to fostering economic growth and sustainability. Since 1900, Idaho Falls Power has provided some of the lowest utility rates in the nation to both residents and businesses. By harnessing the power of the Snake River to generate hydropower, Idaho Falls Power has begun looking to the future by constructing a new natural gas peaking power plant and exploring potential partnerships in the nuclear and geothermal industries.
“Idaho Falls has always been a leader in meeting the area’s energy needs in innovative ways,” said Idaho Falls Mayor Rebecca Casper. “The construction of the new peaking plant doubles the local generation capacity in the winter, meaning more stability in energy prices because we will be relying less on buying electricity from neighboring utilities.”
The ongoing business boom in Idaho Falls is also evident in the increasing utilization of the Idaho Falls Regional Airport. With a 73% increase in passenger traffic since 2019, the airport continues to see record-setting numbers of people choosing to fly IDA. In response, airlines are expanding service, flight options and offering more competitive airfares. The city of Idaho Falls remains dedicated to supporting both current and future growth at the airport. 2025 marks the start of a planned terminal expansion with its relocation of utilities and underground infrastructure.
Idaho Falls is more than just a picturesque city; it is a thriving economic powerhouse. With Idaho National Labratory’s energy innovation, a growing airport and top-tier healthcare, the diverse array of thriving businesses showcase the city's immense potential and promise. As Idaho Falls continues to grow and evolve, it exemplifies how vision, community, and innovation can transform a city into a hub of opportunity.