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Cities That Invest in Arts and Culture See Stronger Sector Performance, New Report Finds

  • Posted Jul 16, 2026

SMU DataArts’ analysis of 10 U.S. cities finds local public investment is linked to stronger financial outcomes and greater resilience for arts organizations

 

Dallas, TX (SMU) / July 16, 2026 — A new report from SMU DataArts, City Arts Sector Trends: Divergence and Resilience Across Ten U.S. Cities (2019–2024), examines the finances and operations of the nonprofit creative sector across 10 geographically diverse U.S. cities: Atlanta; Cleveland; Des Moines; Houston; Los Angeles; New York City; Philadelphia; Phoenix; Sacramento; and Seattle. Drawing on data from more than 4,400 nonprofit cultural organizations, the report finds that sector health metrics that were once similar across cities have diverged sharply since the pandemic, with some cities stabilizing or growing while others continue to contract.

The analysis shows that differences across cities widened as federal relief funding waned, revealing substantial variation in average revenue, expenses, and operating surpluses by 2024. The report also finds that while local public investment represents a relatively small share of most organizational budgets, it is linked with stronger financial performance and higher attendance outcomes across a city’s arts sector. Cities such as Cleveland, Phoenix, and Sacramento that grew or maintained investments in culture saw more stable or improving sector conditions.

“Nonprofit arts and cultural organizations are part of a city’s civic infrastructure, creating shared spaces and sustaining creative work that benefits the public,” said Jen Benoit-Bryan, executive director of SMU DataArts. “Resilience, however, isn’t evenly distributed — and neither is public investment. Where local funding is stronger or growing, organizations are better positioned to adapt; where it has weakened, the strain is increasingly visible.”

The report also examines how outcomes vary by organization type, finding that performing arts organizations, mid-sized and large-budget organizations, and organizations located in central business districts experienced steeper financial strain and slower recovery than other segments of the field. The report also shows that this is not a story of across-the-board decline: a substantial portion of organizations have stabilized or grown their revenue and attendance, even as many continue to struggle.

The report was made possible through the City Arts Data Exchange, a joint initiative of SMU DataArts and Bloomberg Associates, a philanthropic consultancy that advises cities around the world and is part of Bloomberg Philanthropies. The initiative brings together a growing cohort of local arts agencies aligning data collection efforts to support shared learning, more informed local decision-making, and stronger long-term strategy within cities and across the arts and culture sector.

“Investing in culture is one of the ways cities invest in their own vitality,” said David Andersson of Bloomberg Associates’ Arts & Culture Team. “This research shows that when local leaders pair sustained support for the arts with good data, they can create the conditions for arts and culture to thrive across the whole city.”

Key Findings Include:

  • City arts sectors have diverged significantly since the pandemic, with the gap between the highest- and lowest-performing cities’ average revenue widening by 117% from 2019 to 2024.
    • Atlanta, Cleveland, and Phoenix demonstrated resiliency, with stable or growing revenues among cultural organizations.
    • Los Angeles, New York City, Philadelphia, and Seattle all experienced financial contraction, evidenced through declines in revenue and tightening bottom lines.
    • Houston experienced financial contraction that was more moderate than peers, while Sacramento experienced varied outcomes — an increase in median revenue reflecting broad-based growth accompanied by a decrease in average revenue likely reflecting isolated losses among larger organizations.
  • Though local government support covered only about 5% of average organizational expenses in 2024, cities with sustained or growing public arts funding tended to show stronger financial and attendance outcomes, highlighting the role of local investment in shaping sector conditions.
  • Audience recovery remains uneven: While 40% of organizations increased attendance between 2019 and 2024, 54% saw attendance meaningfully contract. On average, attendance across the cohort remained 44% below 2019 levels while program occurrences were reduced by 31%.
  • Some parts of the field face especially acute pressure: Mid-sized organizations, performing arts groups and downtown institutions face some of the greatest ongoing pressure because of higher revenue declines, staffing structures, and facility-related challenges.

The report underscores the importance of data infrastructure in revealing sector health. The insights were made possible through standardized financial and operational data collected by participating cities and nonprofit organizations, showing how shared data practices can help policymakers identify emerging pressures earlier, compare patterns across places, and make more informed decisions about funding and long-term strategy.

The full report, as well as a standalone executive summary, is available at smu.edu/cityartssectortrends

ABOUT SMU DATAARTS

SMU DataArts, the National Center for Arts Research, is a part of the Meadows School of the Arts at Southern Methodist University. The mission of SMU DataArts is to equip the arts and culture ecosystem with data and research insights that help build strong, vibrant, and equitable communities.. Its research efforts range from academic papers published in leading journals, applied research undertaken with community partners, and actionable insights shared directly with arts practitioners. Recent publications include reports on national operating trends for arts and cultural organizationschallenges and opportunities for women artists, the impact of the arts on community livability, the role of inclusion in job satisfaction in the arts workforce and more.

 

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MEDIA CONTACTS 

Emma England

Meadows School of the Arts

214-768-3785 

eengland@mail.smu.edu