Gainesville's economy is primarily anchored by education and healthcare, with the University of Florida acting as the economic engine for the entire region. The university brings in billions of dollars in research funding and sustains thousands of jobs. UF Health (Shands Hospital) and the North Florida/South Georgia Veterans Health System make the city a major referral center for medical care across the southeastern United States.
In recent years, Gainesville has invested heavily in becoming a hub for technology and biotechnology. The establishment of the Gainesville Innovation District, located between the UF campus and downtown, has fostered dozens of startups, many of which are commercializing research developed at the university. While the cost of living is generally slightly below the national average, housing affordability has become a pressing issue as the city grows.