Mar 3, 2026
A state’s capital isn’t always its biggest city, but it can still serve as a measurement for livability.
A new ranking of the best capital cities in the U.S., released by WalletHub on Feb. 16, measures four separate categories based on a total of 48 metrics (1). These categories include affordability, economic well-being, quality of education and health, and quality of life.
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In the top spot is Austin, Texas, which ranked at the top of the list for economic well-being of its residents and quality of education and health care. The city also ranked high on affordability (4th) and overall quality of life (10th). Rounding out the top five are Raleigh, North Carolina, Atlanta, Georgia, Madison, Wisconsin and Boise, Idaho.
“Some state capitals boast incredible job markets, high average salaries, world-class universities and an abundance of attractions,” WalletHub analyst Chip Lupo said in the report. “Unfortunately, others have populations that are struggling financially, failing public education systems and poor public health systems.”
The bottom five of the list, starting from the worst, are Jackson, Mississippi, Augusta, Maine, Trenton, New Jersey, Baton Rouge, Louisiana, and Little Rock, Arkansas.
But while lists like these can offer an approximation, they can’t exactly tell you whether or not a city aligns with your own financial and lifestyle goals. And those who live in lower-ranking cities may still have options when it comes to things like affordability.
The four categories
While the intention of these lists isn’t to convince people to pack up and move, they can offer a glimpse of what life can be like if you’re contemplating moving to a new city for your career or weighing options for where to retire.
Affordability is generally important to everyone, and in the case of WalletHub's ranking, the category measures cost of living, median household income and housing costs. Economic well-being measures a city's job market and economic growth. Quality of education and health cover learning and health care needs. And quality of life is about a city's experience outside the home, including attractions, entertainment and safety.
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One thing lists like these can’t measure, however, is what’s most important to you personally. A younger person with no children will probably be more interested in economic well-being measures like income growth and quality of life factors like restaurants and nightlife options. Families may put more weight into education-related metrics like graduation rates. Older Americans might care a great deal about health care, but be less interested in whether wages are depressed as long as the cost of living remains relatively affordable.
Deciding on your own criteria for livability is key to making the right choice for the best place to live for you. While rankings like this are informational, the reality is that the optimal place to live is often where you have community and connections in place.
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Improve your own situation
Despite these rankings, not everything is peachy at the top. Austin may be No. 1 when it comes to median household income, after adjusting for the cost of living, at $93,902, according to WalletHub, but it doesn't rank high in terms of affordable housing. Zillow shows the average price of a home in Austin to be around $495,000, which is well above the national average of around $357,000 (2). The average rent in Austin ($1,526), however, is lower than. the national average ($1,895).
Austin was also No. 1 in terms of restaurants per capita and attractions, but No. 46 in average weekly work hours. Yet, it held an overall quality of life rank of 10th.
If you're seeking to boost your own affordability situation and quality of life, no matter where you live, re-evaluating your spending habits and cutting where you can to bring your budget down can help. One of the best ways to improve quality of life and affordability is to focus on debt repayment, so that you can eventually free up more of your income for savings and discretionary purchases. And while your city may not be full of exciting attractions or world-class restaurants, there are still plenty of ways to have fun on a budget with low-cost gatherings. Explore joining a book club, finding a spot that hosts game nights or joining a sports league to get more enjoyment out of life in your city.
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Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.
