Buncombe County Moves Into More Distressed State Tier

State officials updated county tier designations on November 26, 2025, and Buncombe County was among those shifted into a more distressed ranking in the latest cycle. The Commerce tier system ranks counties using four indicators, average unemployment rate, median household income, percentage growth in population and adjusted property tax base per capita, and assigns counties to Tier 1, most distressed, Tier 2, or Tier 3, least distressed. Movement into a more distressed tier changes how the county will be prioritized for some state grant programs and economic development incentives going forward.

Local economic conditions and the fallout from Hurricane Helene were cited as factors that influenced the Commerce calculations. Those factors can depress median incomes, raise unemployment and erode the tax base per capita, all of which weigh into the tier score. For residents and small businesses, the designation means the county may be eligible for a broader set of state resources aimed at recovery and revitalization, while also facing closer scrutiny on fiscal trends such as property tax revenue and population shifts.

The practical effect will be twofold. In the short term, local governments and nonprofit organizations can seek higher priority for certain grant funds and technical assistance that target distressed areas. In the medium and long term, sustained placement in a more distressed tier could influence private investment decisions, borrowing costs, and the county budget outlook if the tax base does not rebound. Planners and officials will need to align grant applications, workforce development efforts and infrastructure projects to take advantage of new funding windows while addressing underlying economic weaknesses.

For community leaders the immediate task is translating the designation into actionable recovery plans that shore up incomes, stabilize employment and rebuild the property tax base. Residents should expect county officials to focus grant seeking and economic development strategies on areas most affected by the storm and by recent economic shifts, while tracking how future Commerce cycles respond to recovery progress.