Austin again best state capital to live in for 2025: WalletHub study

AUSTIN, Texas - Austin, Texas has again been crowned the best state capital to live in by WalletHub.

What we know:

Personal finance company WalletHub has released their 2025 list of the best state capitals to live in.

Austin has won the top spot consistently since at least 2019.

This year's top 5 capitals are:

1. Austin, Texas
2. Madison, Wisconsin
3. Raleigh, North Carolina
4. Boise, Idaho
5. Atlanta, Georgia

This list is unchanged from 2024, according to previous posts from WalletHub.

The top 5 worst state capitals are:

1. Augusta, Maine
2. Trenton, New Jersey
3. Jackson, Mississippi
4. Baton Rouge, Louisiana
5. Dover, Delaware

By the numbers:

WalletHub compared all 50 state capitals across 48 key indicators of affordability, economic well-being, quality of life, education and health care. 

Austin's state capital index sits at 64.75, almost four full points above Madison, Wisconsin.

Austin ranks 1st in economic well-being and quality of education and health, while ranking 7th in affordability and 11th in quality of life. Austin also has the highest median income after adjusting for cost of living, $87,519, about twice that of the worst city, Hartford, Connecticut.

Austin ranks fourth for percentage of adults over 25 with a bachelor's degree or higher, and has the second-lowest premature death rate.

Austin also ties with Atlanta for most restaurants per capita and Honolulu, Hawaii for most attractions per capita.

Austin has the second-highest percentage of millennial newcomers

What they're saying:

WalletHub says of Austin:

"Austin, TX is the best state capital overall, in part because it has the highest median household income after adjusting for the cost of living, at $87,519. It also provides a good environment for business, with new businesses opening at the fourth-highest rate in the country.

"Austin has a great education system, ranking at the top of the country when it comes to the share of public schools rated as "above average" by Greatschools.org. In addition, it has the third-highest percentage of high schoolers who graduate within four years, along with high-quality university education. It’s also one of the most educated cities overall, with the fourth-highest percentage of residents ages 25+ with at least a bachelor’s degree.

"Finally, Austin offers both a safe and fun environment, with the second-highest life expectancy for residents and an extremely high number of attractions and restaurants per capita. It’s no wonder so many people have moved to the capital of Texas in recent years."

Dig deeper:

Here's the breakdown on how each state capital was scored.

WalletHub compared all 50 state capitals across four key dimensions: 1) Affordability, 2) Economic Well-Being, 3) Quality of Education & Health and 4) Quality of Life, broken down into 48 relevant metrics.

Each metric was graded on a 100-point scale, with a score of 100 representing the most livable state capital. Then those scores were used to determine the "weighted average" and calculate the State Capital Index.

Affordability – Total Points: 25

• Cost of Living: Double Weight (~10.00 Points)
• Median Household Income: Double Weight (~10.00 Points) (Note: Adjusted for the cost of living)
• Housing Costs: Full Weight (~5.00 Points) (Note: Calculated as follows: (Median House Price / Median Annual Household Income); (Median Rent Price / Median Annual Household Income).)

Economic Well-Being – Total Points: 25

• Population Growth: Full Weight (~1.85 Points)
• Income Growth: Double Weight (~3.70 Points)
• Median Credit Score: Half Weight (~0.93 Points)
• Income Inequality: Full Weight (~1.85 Points)
• Debt as a Share of Median Income: Double Weight (~3.70 Points)
• Share of Population Living in Poverty: Full Weight (~1.85 Points)
• Unemployment Rate: Full Weight (~1.85 Points)
• Underemployment Rate: Full Weight (~1.85 Points)
• Growth in Number of Businesses (2022 vs 2021): Full Weight (~1.85 Points)
• Foreclosure Rate: Half Weight (~0.93 Points)
• Bankruptcy Rate: Half Weight (~0.93 Points)
• Building-Permit Activity: Full Weight (~1.85 Points) (Note: Number of new unit permits pulled per capita)
• Share of State, Local & Federal Government Employees: Full Weight (~1.85 Points)

Quality of Education & Health – Total Points: 25

• K–12 School-System Quality: Full Weight (~1.47 Points) (Note: Share of public schools rated by GreatSchools.org with an above average score)
• High School Graduation Rate: Double Weight (~2.94 Points)
• Average University Score: Double Weight (~2.94 Points) (Note: Based on WalletHub’s "2025 Best Colleges & Universities" ranking)
• Number of Universities in Top 822: Full Weight (~1.47 Points) (Note: Based on WalletHub’s "2025 Best Colleges & Universities" ranking)
• Share of Adults with at Least a Bachelor’s Degree: Double Weight (~2.94 Points) (Note: "Adults" includes ages 25 and older)
• Share of Population with Health-Insurance Coverage: Full Weight (~1.47 Points) (Note: "Population" includes ages 16 and older)
• Quality of Public Hospital System*: Double Weight (~2.94 Points) (Note: Based on data from Centers for Medicare & Medicaid Services)
• Hospital Beds per Capita**: Full Weight (~1.47 Points)
• Premature-Death Rate: Full Weight (~1.47 Points) (Note: Measures average years of potential life lost)
• Infant-Mortality Rate: Full Weight (~1.47 Points)
• Share of Adults in Good Health: Full Weight (~1.47 Points) (Note: Based on a CDC health survey. "Good Health" includes responses of "good," "very good" and "excellent" health. "Adults" include respondents aged 18 and older.)
• Adult Obesity Rate: Full Weight (~1.47 Points)
• Physical Inactivity: Full Weight (~1.47 Points)

Quality of Life – Total Points: 25

• Share of Millennial Newcomers: Double Weight (~2.13 Points)
• Number of Attractions: Full Weight (~1.06 Points) (Note: "Attractions" include, for instance, zoos, museums and theaters)
• Nightlife Options per Capita**: Full Weight (~1.06 Points)
• Restaurants per Capita**: Full Weight (~1.06 Points)
• Affordable Restaurants with Ratings of 4.5+ Stars: Full Weight (~1.06 Points)
• Coffee Shops per Capita**: Full Weight (~1.06 Points)
• Movie Theaters per Capita**: Full Weight (~1.06 Points)
• Fitness Centers per Capita**: Full Weight (~1.06 Points)
• Walkability: Full Weight (~1.06 Points) (Note: Based on data from Walk Score)
• Access to Public Transportation: Double Weight (~2.13 Points)
• Average Commute Time: Full Weight (~1.06 Points)
• Driving Fatalities per Capita: Full Weight (~1.06 Points)
• Average Weekly Work Hours: Double Weight (~2.13 Points)
• Mildness of Weather: Full Weight (~1.06 Points) (Note: Based on WalletHub’s "Cities with the Best & Worst Weather" ranking)
• Air Quality: Full Weight (~1.06 Points)
• Sports Fan-Friendliness: Full Weight (~1.06 Points) (Note: Based on WalletHub’s "Best Sports Cities" ranking)
• Violent-Crime Rate: Double Weight (~2.13 Points)
• Property-Crime Rate: Double Weight (~2.13 Points)
• Perception of Safety (Safety walking alone during daylight/at night): Half Weight (~0.53 Points) (Note: Based on perceptions of visitors of the Numbeo website in the past 3 years. If the value is 0, it means it is perceived as very low, and if the value is 100, it means it is perceived as very high)

WalletHub used a variety of data sources in their study, including the U.S. Census, Bureau of Labor Statistics, U.S. Department of Housing and Urban Development, the FBI, Council for Community and Economic Research, Chmura Economics & Analytics, ATTOM Data Solutions (RealtyTrac), TransUnion, GreatSchools.org, Centers for Medicare & Medicaid Services, Health Resources & Services Administration, the CDC, County Health Rankings, Walk Score, Administrative Office of the United States Courts, National Highway Traffic Safety Administration, Yelp, Numbeo, the EPA, TripAdvisor and WalletHub research.

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