To determine America’s 50 best cities to live in, 24/7 Wall St. considered roughly 590 cities the U.S. Census Bureau reported as having populations of more than 65,000 in 2016. Only the top performing city in each county was considered in our ranking. Data were collected in nine major categories: crime, demography, economy, education, environment, health, housing, infrastructure, and leisure.
Within each category, specific measures contributed to a city’s overall category score. For example, the economy category included median household income adjusted for cost of living, the ratio between a city’s and its state’s median household income, poverty and unemployment rates, as well as a city’s three-year employment growth. Each measure was adjusted to range from 0 to 1 using min-max normalization, with lower scores indicating better outcomes.
Normalizing each measure, as opposed to aggregating category scores, allowed us to assign weight to individual measures to reflect their importance rather than entire categories. It also enabled us to expose the principal components of our index — those measures with wider variation that disproportionately determine the rank of a city’s composite score. The housing category, for example, had the widest range, giving it the greatest pull in our index. Crime and economy also had large variances.
We did not include any measures in the population change category in our composite index. However, this category provided exclusion rules. Cities that are better to live in often attract job seekers and their families. Conversely, labor market slack, unaffordable housing, high crime rates, or a myriad of other negative factors may induce people to move to a different city with better prospects. Thus, we excluded cities with negative five- or 10-year population growth rates. Population figures are from the Census Bureau’s 2016 American Community Survey (ACS).
The crime category consists of both violent and property crime rates from the Federal Bureau of Investigation’s 2016 Uniform Crime Report. Cities with crime rates lower than the national rates were rewarded, while cities with higher crime rates were penalized.
A strong economy and the health of a labor market are, for some, the only considerations when determining where to live. The economy category includes a city’s 2016 unemployment rate and employment growth from 2014-2016, both from the Bureau of Labor Statistics. Additionally, we considered the area’s poverty rate. Cities were penalized for having poverty rates above the national rate of 14.0%. Our goal was to identify cities that were liveable for everyone, not just the rich. Still, if incomes are too low, a city may not be desireable. To that end, we adjusted median household income for cost of living in the city. Cities were penalized if cost-adjusted incomes were less than $44,000 or more than $112,000 a year — roughly 80% to 200% of the median household income nationwide. Poverty rates and median incomes came from the 2016 ACS. Cost of living data came from property and real estate data provider Attom Data Solutions.
A strong school system may be another consideration for parents looking to move. As a proxy for school system strength, we considered high school standardized test scores relative to state scores from Attom Data Solutions. Test score data are for 2016 or the most recently available year. Additionally, the education category included the percentage of adults with at least a bachelor’s degree from the ACS as well as the number of colleges and universities in a city per 100,000 residents from the Department of Education. Both measures are as of 2016.
For people who like being outdoors — either for work or pleasure — a city’s air quality and weather may be of chief importance. Whereas other measures in this index are specific to an individual city, many metrics in this category describe the county in which the city is located because weather is likely similar, if not the same, in these two geographies. In this category, we included an air quality index to assess the levels of a variety of pollutants on a given day. Additionally, we considered an index measuring natural hazard risk as well as average monthly rainfall. All data in this category came from Attom Data Solutions.
Access to quality hospitals is another benefit of a desirable city. From the Centers for Medicare and Medicaid Services (CMS), we calculated 30-day risk-adjusted mortality rates of heart attacks, COPD, heart failure, pneumonia, and stroke. Also from CMS, we examined the rate at which individuals were readmitted to a hospital within 30 days of being discharged. This category also includes preventable hospitalizations — the share of hospitalizations that could have been treated with outpatient or ambulatory care for every 1,000 Medicare recipients from County Health Rankings.
For many American homeowners, their houses constitute the vast majority of wealth. An investment of this magnitude requires careful consideration and may be the chief reason that people decide to live where they do. In our housing index, we considered the ratio of a city’s median home value to the statewide median home value. Cities were penalized if a city’s median home value was worth less than 90% of the statewide median home value. Conversely, if home values were typically 25% higher than across the state, high barriers to entry exist that can make a city unaffordable. As an additional measure of affordability, we included the ratio of median home value to median annual household income. This ratio — called a price-to-income ratio — helps identify cities that are liveable for a broad audience. We also considered median property taxes as a percentage of median home value. All data in this category came from the 2016 ACS.
Proximity to work places may be another factor in determining where to live. According to the Texas A&M Transportation Institute, Americans waste nearly 7 billion hours — or $160 billion — due to commuter traffic congestion. From the ACS, we considered the percentage of commuters travelling to work by foot or public transportation. Additionally, we reviewed the average time it takes to travel to work each day. Lastly, we included the number of airports in the metro area in which the city is located. There are, for example, no airports in New York County, the primary county of New York City. However, at least three major airports exist outside county limits — and within the metro area — that service people who live in the city. Airport data came from the Federal Aviation Administration and only considers operational public-use and commercial airports as of 2016.
The leisure category can be broken into two parts: activities that take place in the city and outside of it. Within a city, residents may take advantage of restaurants and bars, libraries and archives, theater companies, fitness and recreational sports centers, museums, movie theaters, hotels, or amateur and professional sports teams. To engage in other pastimes — skiing, for example — residents likely have to leave city limits. Thus, we included in this index the number of zoos, nature parks, ski resorts, and golf courses in the counties surrounding the city. All data in this category was aggregated to the city level from 2014 Zip Code Business Patterns, a program maintained by the Census and adjusted for the city’s 2016 population.
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