Austin, TX Ranked #1 for Quality of Life in the US - 2024 Report

The Texas capital tops the list for the second year running, driven by economic prosperity and high quality of life.

Feb. 21, 2026 at 10:05pm

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For the second consecutive year, Austin, Texas has been named the best state capital to live in according to a recent WalletHub study. The analysis evaluated all 50 state capitals across factors like affordability, economic well-being, education, and healthcare. Austin excelled in these metrics, boasting the highest median household income adjusted for cost of living and a highly educated population that fuels the city's thriving tech industry and innovative spirit.

Why it matters

This sustained ranking at the top reflects a broader trend of a shift in American urban preferences towards cities in the South, driven by factors like affordability, job opportunities, and favorable climate. The WalletHub study shows that traditional coastal hubs are no longer dominating quality-of-life rankings, as capitals like Raleigh, Atlanta, and Austin rise to the forefront.

The details

WalletHub's methodology focuses on four key metrics, and Austin performs exceptionally well across the board. The city boasts the highest median household income adjusted for cost of living at nearly $88,000, nearly double that of some other capitals. This economic strength fuels a vibrant job market and attracts a skilled, highly educated workforce - Austin ranks 4th nationally in the percentage of adults with a bachelor's degree or higher. Beyond economics and education, Austin offers a high quality of life, tying for the most restaurants and attractions per capita and boasting the second-highest life expectancy among capital cities.

  • The WalletHub study analyzed data from 2019 through 2024.
  • Austin has been ranked the #1 state capital to live in consistently since at least 2019.

The players

WalletHub

A personal finance website that conducted the analysis ranking all 50 state capitals based on factors like affordability, economic well-being, education, and healthcare.

Austin, Texas

The capital city of Texas, which has been ranked the best state capital to live in for the past two years according to the WalletHub study.

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What’s next

The WalletHub study will continue to monitor quality of life metrics in state capitals across the country, providing annual updates on the top-ranked cities.

The takeaway

Austin's consistent ranking at the top of the WalletHub quality of life study reflects a broader shift in American urban preferences, with Southern cities like Austin, Raleigh, and Atlanta increasingly appealing to residents seeking a balance of economic opportunity, affordability, and high quality of life.