Posted by: Richie Bernardo

Everyone has a natural habitat. Some of us prefer the slow pace and bucolic setting of the countryside. Others are drawn to the part-rural, part-urban charm of suburbs. But more and more of us are falling in love with the energetic pulse of the large metropolis.

Big cities are growing nearly twice as fast as they did during the 21st century’s opening decade, according to Census Bureau data, with a variety of factors fueling the trend in favor of more population density. It’s all about the diversity for some, and being in the center of the action for others. Ease of access to food, entertainment and other activities also plays a role. But opportunity, both economic and personal, is the main driving force for most. The tradeoff, of course, is limited square footage. But most city dwellers agree that less wiggle room is a small price to pay for the abundance of available amenities.

With real estate and employment markets varying considerably across the country, WalletHub compared the attractiveness of the 62 largest U.S. cities in terms 31 relevant metrics, including measures of livability, health- and education-system quality, economic growth and tax burden. The results, as well as expert commentary and a detailed methodology, can be found below.

1. Main Findings
2. Ask the Experts
3. Methodology

Main Findings Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/14358/geochart-livein.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2uPJvxI;

 

Overall Rank	City	Total Score	“Livability” Rank	“Education” Rank	“Health” Rank	“Local Economy & Taxes” Rank
1	San Francisco, CA	71.56	9	3	1	17
2	Seattle, WA	69.88	7	2	7	24
3	Raleigh, NC	69.33	8	8	15	2
4	Colorado Springs, CO	67.60	2	12	14	14
5	Denver, CO	66.86	1	20	17	3
6	San Jose, CA	66.59	13	9	5	21
7	Austin, TX	66.22	12	13	21	1
8	San Diego, CA	65.48	3	11	6	30
9	Minneapolis, MN	62.94	4	35	9	15
10	Washington, DC	60.61	37	1	4	37
11	Oakland, CA	60.24	47	3	3	29
12	Virginia Beach, VA	60.09	10	16	23	18
13	Omaha, NE	59.63	6	23	44	5
14	Aurora, CO	59.59	27	20	24	4
15	Portland, OR	59.42	18	14	8	40
16	Lexington-Fayette, KY	59.39	19	10	28	23
17	Tampa, FL	56.72	5	33	39	20
18	Charlotte, NC	56.51	40	22	26	7
19	Boston, MA	56.06	51	34	2	26
20	Sacramento, CA	55.62	11	29	10	48
21	Honolulu, HI	54.08	15	15	19	57
22	Pittsburgh, PA	53.34	22	17	31	33
23	Atlanta, GA	53.31	38	5	22	36
24	Kansas City, MO	52.77	24	25	42	25
25	Oklahoma City, OK	52.53	21	37	60	12
26	Anaheim, CA	51.97	36	44	11	42
27	Nashville, TN	51.73	29	48	46	10
28	Mesa, AZ	51.62	26	24	34	34
29	Long Beach, CA	51.17	33	27	18	49
30	Columbus, OH	50.99	31	41	38	22
31	Corpus Christi, TX	50.58	30	55	52	13
32	Miami, FL	49.79	52	31	16	44
33	Arlington, TX	49.58	35	39	59	9
34	Albuquerque, NM	49.23	16	30	27	55
35	St. Louis, MO	49.12	34	6	51	35
36	Houston, TX	48.98	48	42	55	8
37	Tulsa, OK	48.19	17	58	53	19
38	Los Angeles, CA	47.76	39	53	20	43
39	Fort Worth, TX	47.61	42	51	58	6
40	Tucson, AZ	47.25	23	32	25	59
41	Phoenix, AZ	47.22	25	50	32	39
42	New York, NY	47.18	57	18	13	60
43	Jacksonville, FL	46.97	45	38	29	41
44	Las Vegas, NV	46.84	14	49	41	47
45	Bakersfield, CA	46.80	20	56	43	31
46	Santa Ana, CA	46.67	53	53	12	45
47	Milwaukee, WI	46.60	44	7	36	52
48	Dallas, TX	46.52	55	51	48	11
49	San Antonio, TX	46.20	50	47	54	16
50	Louisville, KY	45.18	41	45	57	28
51	Wichita, KS	45.06	28	59	40	32
52	El Paso, TX	45.05	32	40	62	27
53	Chicago, IL	44.48	54	28	37	54
54	Riverside, CA	44.29	46	43	33	51
55	New Orleans, LA	44.02	43	46	50	38
56	Indianapolis, IN	41.27	60	19	49	46
57	Baltimore, MD	40.78	59	36	30	61
58	Philadelphia, PA	37.75	56	57	47	56
59	Fresno, CA	37.00	49	61	45	50
60	Cleveland, OH	34.21	58	60	35	62
61	Memphis, TN	31.51	62	62	56	53
62	Detroit, MI	31.32	61	26	61	58

Ask the Experts

To help ease the process of finding the right place to call home, we asked a panel of experts to weigh in on key matters relating to relocation. Click on the experts’ profiles below to read their bios and thoughts on the following key questions:

1. What are the most important financial factors to consider when deciding where to live?
2. What is the biggest mistake people make when planning a move to a new place?
3. What steps should a person taken to determine if an area is right for him/her to move to?
4. Is it always a good idea to rent before buying in a new area?
5. What can local policymakers do to attract and retain new residents?

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• Nikki Wagner Assistant Director of the Kelley A. Bergstrom Real Estate Center at University of Florida, Warrington College of Business
• Kathryn R. Terzano Associate Director of Research of the Metropolitan Research Center at University of Utah, College of Architecture & Planning
• Kevin J. Boyle Professor and Director of the Real Estate Program at Virginia Tech, College of Agriculture and Life Sciences
• Jesus M. Salas Associate Professor of Finance at Lehigh University, College of Business and Economics
• Thomas O'Guinn Professor of Marketing and Arthur C. Nielsen, Jr. Chair in Marketing Research and Education at University of Wisconsin, School of Business
• Kipling M. Pirkle John and Barbara Glynn Family Visiting Professor of Business Administration at Washington and Lee University, Williams School of Commerce
• Shaw Lupton Adjunct Professor of Real Estate at Brandeis International Business School
• Edward Chazen Senior Lecturer, Business Law & Society, Boston College
• Daniel A. Broxterman Assistant Professor of Real Estate at Florida State University, College of Business
• Alex Krieger Professor in Practice of Urban Design at Harvard Graduate School of Design

Nikki Wagner Assistant Director of the Kelley A. Bergstrom Real Estate Center at University of Florida, Warrington College of Business What are the most important financial factors to consider when deciding where to live? As part of an academic program in which millennials often find their first job out of college, they tell us the most important factors are the earning potential of that job and the replacement cost of that job (i.e., how easy it would be to find a similar job in that area if the first job didn’t work out), and rent costs. What is the biggest mistake people make when planning a move to a new place? Not fully calculating costs in utilities, taxes, and insurance. It is often more than originally anticipated. What steps should a person take to determine if an area is right for him/her to move to? In the short term, people should study the retail and office space surrounding the area. This is a key indicator in who lives in the area and what the market suggests the area can bear in growth. If the move is considered a long term investment, people should investigate the public school system and local political decisions that will govern growth in the foreseeable future. Is the area you want to live looking to grow or to stay the same? If you are younger, you probably want to live in a city that supports your career advancements, while those who are older may be ready for stabilization. Is it always a good idea to rent before buying in a new area? This is a good question and one that depends on how long you plan to stay in the area. Renting is not “throwing good money away” if it offers a limited glimpse into the surrounding area and lets you learn the lay of the land. It can also give you the time you need to discover areas of town that may be underutilized or undiscovered. However, timing is critical in making investment decisions, so you have to weigh this advantage over the advantages of owning a home. What can local policymakers do to attract and retain new residents? Local policymakers have tremendous power to attract and retain residents to their area. Having an open mind, hearing out concerns, and having fair, transparent zoning laws and restrictions go a long way. It also helps to have a service-minded attitude that aims to help, not hinder businesses who may have new and different ideas. Kathryn R. Terzano Associate Director of Research of the Metropolitan Research Center at University of Utah, College of Architecture & Planning What are the most important financial factors to consider when deciding where to live? This greatly depends on a person’s life stage – whether he or she is an early career mover, mid-career, or retiree. For the first two categories of movers, a person needs to consider the overall cost of living along with the person’s earning potential. What does the job market look like for the person’s field? Is it growing or shrinking, and can it support another person in the field? The housing market is also key. One needs to decide whether home ownership is a goal and, if so, what kind of income and savings will be needed to make that goal a reality. A nurse in Des Moines may find home ownership to be a more achievable goal than a professor in San Francisco would find it. For the retiree, the math is a little more straightforward and it becomes a question of how far will one’s retirement income stretch in the target area? What is the biggest mistake people make when planning a move to a new place? They pick a place without considering the local job market. For example, someone may choose Spokane, Washington, because of a love of the outdoors, but not realize it’s a bad time to be looking for a job in Spokane. What steps should a person take to determine if an area is right for him/her to move to? A person should research the job and housing markets as well as the general feel of the area to see if the fit is right. Before any move, a person should expect to visit at least once and, instead of visiting the local tourist attractions, make a point to visit prospective neighborhoods, drive or take transit during rush hour, and talk to the locals. Finding an independent coffee shop and talking to the baristas is always a smart idea – the baristas will likely have insiders’ knowledge about the area. What can local policymakers do to attract and retain new residents? Local policymakers should be aware of the power of branding and marketing for their town/city. Certain cities, like Portland, Oregon, have been wildly successful in crafting and reinforcing their brand/identity. However, policymakers can’t put the cart before the horse – their town/city has to have a defined sense of place before that identity can be used to attract new residents. Kevin J. Boyle Professor and Director of the Real Estate Program at Virginia Tech, College of Agriculture and Life Sciences What are the most important financial factors to consider when deciding where to live? Income potential, cost of housing, and non-housing living expenses. What is the biggest mistake people make when planning a move to a new place? Not fully considering non-housing living expenses and moving to a place that one would personally find attractive, but employment is limited. What steps should a person take to determine if an area is right for him/her to move to? Be sure what they want in life. Visit the area (not on vacation where all is rosy) and research, research, research... there is much to be learned! Is it always a good idea to rent before buying in a new area? This is an individual decision based on knowledge of the new area, financial statuses, and current and expected market conditions. What can local policymakers do to attract and retain new residents? Have a community goal and reduce impediments and enhance desirable features. Year-round activities to create a vibrant community are important. Jesus M. Salas Associate Professor of Finance at Lehigh University, College of Business and Economics What are the most important financial factors to consider when deciding where to live? The first item is cost of living. The cost of property is also important. Can you afford to live there? $300,000 goes quite far in Oklahoma City. It does not go very far in New York City or San Francisco. You may get 300 square feet in New York City with $300,000 or you could get a 4 bedroom house with a back-yard in Oklahoma City. This does not look much different when you are looking at renting. You can get a one bedroom apartment in Oklahoma City for as low as $500 a month. In San Francisco, a one bedroom apartment could cost you $4,000 (or more!). What will your income be? The extra compensation you get in San Francisco may not be enough to pay for the extra costs of living in San Francisco. Next, taxes are likely most important. Here, I am speaking of state and city level taxes. These include income taxes, dividend and capital gains taxes (especially for retired folks), property taxes, sales tax, etc. Some states that tax the most include California, Oregon and New York. Cities like New York and Philadelphia are especially bad in this respect because they charge a significant income tax rate to people who live in the city. Texas and Florida are states that are quite good for people in terms of taxes. I should add that I don't know many people who rejected a job offer because of the income tax rates charged in those cities. I know some people will avoid living in the cities with high city income tax rates, but I don't know many who have rejected a job offer because of the city income tax rate. Everybody complains about taxes but few change jobs because of the income tax rate in a city/state. Lastly, transportation costs could be significant in large cities. If you live in Boston, New York City, or Washington DC, you should consider the monthly cost of public transportation (or parking downtown; this is also expensive). What is the biggest mistake people make when planning a move to a new place? Not doing enough research. People may fall in love with a job and forget to see whether they can actually live in that city with that salary. The first shock is housing. People who have not lived in an expensive city like San Francisco are shocked when they find out the size of housing that you can rent for $3,000 a month. Remember that the cost of renting a house is not tax deductible. This means that if you make $5,000 before taxes, and you pay $3,000 a month to rent a house, you have $2,000 left and you may not have enough to pay your taxes! What steps should a person take to determine if an area is right for him/her to move to? Find out where other workers from the prospective city live. Search out housing there (either for rentals or to buy). Estimate how much will go to housing. Generally speaking, you should not spend more than 25% of your pre-tax income on rent. So, if you earn $60,000 a year, you should look to rent places (or pay a mortgage) that cost about $1,250 a month. If you have children, remember to also consider the quality of schools. Is it always a good idea to rent before buying in a new area? This is a very personal choice. Today, many people don't believe buying a house is a good idea. The answer also depends on the cost of renting versus the cost of buying (the mortgage) in a city. A rule of thumb for potential buyers is that you should really not buy a house unless you plan to live there for at least 7 years. The reason is that closing costs and taxes when buying and selling a home could be significant (about 15% in total). It takes time to recover your investment. Buying a home early could help you because you can "get" to the 7 years sooner. On the other hand, renting could help you know the city better so you can determine where you want to live. I should add that people should pay attention to politicians. The tax deductibility of mortgage interest is becoming more controversial as time goes by. If governments remove the tax deductibility of mortgage interest, the demand for houses may fall (as demand for home purchases fall) and rental prices may rise (as the cost of owning a house rises). What can local policymakers do to attract and retain new residents? I believe schools are the best investment for new residents. Although I do not have children, most people care more about their children's education than any other benefit (such as parks or better streets). I will abstain from saying how local policymakers can get better schools because this is not my field. Many states make huge investments in education with relatively low success (I will not name states). I would consider lowering income taxes, but as I mentioned before, I don't know many who have rejected job offers because of city/state income taxes. Thomas O'Guinn Professor of Marketing and Arthur C. Nielsen, Jr. Chair in Marketing Research and Education at University of Wisconsin, School of Business What are the most important financial factors to consider when deciding where to live? I’m a consumer behavior expert, so I see things from a consumer perspective. We long ago gave up on the notion that consumption was driven by rationality, an amazing silly idea in the first place. A good consumer decision is not necessarily optimal in the sense of economic maximization; to us, a good decision is one that satisfies the consumer. For the vast amount of consumers, a house is a home, a material thing that is then vested with all sorts of meaning and emotion. Homes are not, for most of us, either impulse buys at the checkout counter or stocks. They are homes. Both my personal experience and research suggests that consumers know a lot more about what they want in a home than “expert” others, or even their “rational selves.” What is the biggest mistake people make when planning a move to a new place? Conflating place and self. In other words, wherever you go, you’re still there. Don’t get me wrong, new places can and do give us space and context to grow, change, and even reinvent over the life-course. Modern western literature is full of people moving for this exact purpose: Fitzgerald, Robert Penn Warren, and Hemmingway just to name a few. The problem, like with anything, is that the myth rarely quite lives up to reality. Be reasonable with this expectation. Consumer behavior researchers and sociologists have long been convinced that the felt need to constantly alter identity, even in slight ways, drives a great deal of consumer behavior. So, sure, consider all the new opportunities a new locale offers you, but don’t think that the move will be completely transformative; odds are it won’t be. What steps should a person take to determine if an area is right for him/her to move to? Research indicates that both direct experience and our imaginations are necessary to best know how happy we will be with our purchases. First, trial is hugely important in consumer satisfaction. So, try out the new place as best you can. It will not be the same as purchase, but it gets you closer: visit, visit, visit. Go home, think, let reality sink in, calculate… can you afford this… do you really want it? Then, go back, this time with questions for others and yourself - specific things. Also, don’t drink the local booster Kool-Aid, maybe a sip, but that’s it. Newsflash: people like to justify their decisions with the same behavior from others. Any time a bunch of locals tells you: “Nowhere but _______________, “ beware. The truth is there are plenty of fine alternatives to this year’s shiny thing. If you like the place, that’s fine, but busts and consumer disappointment are too often what follow from a rush to the new cool place. Another thing choice research has told us is that emotion, “gut feelings” should not be tossed aside. Trust yourself, listen to what you really think and feel, and try to shut out the din of self-interested others. Is it always a good idea to rent before buying in a new area? Generally speaking, yes. But, it is, like all things human, not that simple. We feel differently about things we rent and things we buy. The reasons have to do with commitment, dissonance reduction, cognitive consistency, endowment of things we own, etc., etc. But, for most of us, it’s generally better. What can local policymakers do to attract and retain new residents? This is a question addressed by some of my own work, and that of my doctoral student, Meredith Thomas. We study New Urban neighborhoods, consumption, community and consumer satisfaction within them. Our work considers urban design, policy, the marketing, even branding of neighborhoods, and what works and doesn’t. Our work is ongoing, but I can tell you that policy makers can make a huge difference in both attracting buyers, and more importantly, satisfying them. We believe that in addition to helping create cultural capital, or the value within culture to say that you live in a certain town, neighborhood, even state, policy makers must also contribute the sustainability, and likely appreciation, of those places by also investing in infrastructure (typically with the developer) in social capital... that is value that accrues to society, that makes living around others more meaningful, enjoyable, and fulfilling. By the way, doing this also seems to predict greater home appreciation. The desire for community has been recognized in sociology for almost a century and a half, and it seems to be impossible to extinguish. Some of our current desire for it in New Urbanism is no doubt linked to our life in an age of anxiety and disruption. It is no accident that a thick thread running through New Urbanism is nostalgia. So, attracting new residents can be done by making a place the next cool thing: chase David Brooks’ Bourgeois Bohemians or BOBOS. Talk constantly about authenticity, hip, cool, craft beer, farm to table everything… and sustainability. But, if the promise turns out to be mere marketing, sustainable growth and retention will be more difficult. Urban planners, developers and citizens, yes willing to invest through taxes, can create the social capital that makes people want to move and stay there. It might also make a better democracy. Kipling M. Pirkle John and Barbara Glynn Family Visiting Professor of Business Administration at Washington and Lee University, Williams School of Commerce What are the most important financial factors to consider when deciding where to live?

• Cost of living index;
• Relative cost of housing, both owning and renting;
• Access to quality amenities and services at reasonable prices;
• Hidden costs of commuting;
• If children, costs of private education;
• Especially for retirees, proximity and quality of healthcare access.

What is the biggest mistake people make when planning a move to a new place? Most people move based on job opportunities, typically driven by promotion and salary. It always becomes a lifestyle trade-off. There is a reason companies pay you more to endure a two-hour commute. If lifestyle is important, don’t let the higher salary woo you into a situation that makes you miserable. I’ve been there. Young people typically don’t have much choice, but eventually they will have some latitude in making these choices. What steps should a person take to determine if an area is right for him/her to move to? It sounds corny, and most of us will never do it, but make a list. Set aside an hour, and then be true to yourself and your significant others with the outcome. If weather is a deal-breaker for anyone, make it a priority. If lifestyle comes through strongly, follow your heart and you’ll be a much happier person in the long run. Opportunities will always present themselves to talented people. The Millennials seem to be teaching us some things in this regard. Is it always a good idea to rent before buying in a new area? I used to always advise my students to buy, but that is over. In today’s market, why let a condo determine your career path? Always rent, even if you are not a first time buyer. I realize there are some seller markets that you just have to take a leap, but nothing beats on-the ground research, and watching Zillow. The cost and hassle of a storage unit and two moves is far less than making a bad long-term real estate decision. There are no guaranteed returns in real estate anymore. What can local policymakers do to attract and retain new residents?

• Pro-business environment and aggressive economic development team;
• An active welcoming entrée for networking – perhaps a Newcomers’ Club or Chamber of Commerce;
• Politicians and decision-makers that actually listen to and encourage input from citizens;
• Quality (read safe) neighborhoods and outside space. Well cared for parks and amenities. See Malcolm Gladwell’s The Tipping Point regarding abandoned buildings and windows and New York subway cars.

Shaw Lupton Adjunct Professor of Real Estate at Brandeis International Business School What are the most important financial factors to consider when deciding where to live? Factors like income, savings, and credit will determine the price of the home you can afford. Deciding where to live then becomes a lifestyle choice: Essentially, where can you find the right balance between size and location? Whether you are renting or buying, price per square foot will help you compare the alternatives. A household with a $500,000 budget (roughly $2,500/month rental equivalent) might face a choice between a 500 SF downtown studio apartment or a 2,000 SF house in the suburbs. Finance can’t tell you which choice is right, but one thing is for sure: That $1,000/SF ($5/SF to rent) studio represents a different lifestyle than the $250/SF ($1.25/SF to rent) three-bedroom house with a backyard. What is the biggest mistake people make when planning a move to a new place? Prices can vary wildly between neighborhoods, and differences from one city to the next can be even more dramatic. I’m reminded of an extreme example of a colleague who took a new job in Boston, a city where square feet command a hefty sum, and wound up commuting to work each week by plane rather than selling his spacious Chicago townhome. As funny as it sounds, I think my colleague had the right idea: He didn’t mind the 800-mile commute, but he was unwilling to compromise on the location of his home. You can tear down walls, upgrade finishes, and sometimes even add square footage, but you can't change the address. So, my advice is to decide on the city where you want to live (hopefully it’s the same city where you work), then choose the best location you can afford given your budget and size requirements. What steps should a person take to determine if an area is right for him/her to move to? The information available to consumers today is incredible. I remember using online message boards to search for my first apartment. This is still a viable option, but probably not the most effective way to conduct a search. Consumers now have much more sophisticated tools like Apartments.com at their disposal, where you can search based on criteria that goes way beyond budget, size, and location: Data points like whether or not pets are allowed and commute times, in addition to qualitative factors like restaurants and sports teams. Is it always a good idea to rent before buying in a new area? While there is an incredible amount of information online, and even with technology like virtual reality coming into play, it's important to physically explore the market before committing to that big purchase. Get to know the neighborhoods, the homes, and the brokers. This takes time. In a hypercompetitive market where there is excess housing demand outstripping supply, buyers often feel pressured to rush into a purchase. It can be tough because it's such a big decision that requires tons of time and energy, but try not to fall victim to deal heat. You may wind up renting longer than expected while waiting for the right deal to come along. Think creatively. If you like the place you’re renting now, why not make an unsolicited offer? What can local policymakers do to attract and retain new residents? One way policymakers can attract and retain new residents is to promote a climate where it's easy for businesses to hire workers, and it's easy for workers to afford a home. When we look at migration patterns across the country, it's clear that folks are choosing to live in cities with reasonably priced housing and lots of job openings. Many cities in the Southeast, the Southwest, and the West fit the bill particularly well today. Housing affordability is largely a function of the housing supply (which needs to be ample enough to satisfy incoming demand as new households enter the market). Another factor policymakers need to think about carefully is immigration. With U.S. working-age population growth set to crater over the next decade, the future of immigration policy is going to make a big difference in how easy it is for businesses to find the workers they need to grow. Edward Chazen Senior Lecturer, Business Law & Society, Boston College What are the most important financial factors to consider when deciding where to live? Important financial factors should definitely include the cost of housing, which is the single largest monthly expense for a household. The important ratio to research before moving is the relationship of median housing prices to median household income; in most US metropolitan areas, that ratio is about 6-7 x. In high cost cities, like NYC, Boston and San Francisco that ratio could be as high as 9-10 x, whereas in growing cities such as Austin, Raleigh and Denver it is closer to 6-7 x. If a household is considering renting, instead of buying, they should target rent at 30% of pre tax income. What is the biggest mistake people make when planning a move to a new place? I think a common mistake made by first time home buyers - especially if they are new to a community - is not knowing the neighborhoods, traffic patterns and commuting times to work before they buy a home. It might be worthwhile to rent for a year, with an option to buy or have the flexibility to move elsewhere at the end of the lease, if a household is new to a city, so they don't commit themselves to large purchase before knowing the community and its streets. What can local policymakers do to attract and retain new residents? Policymakers should focus on encouraging production of housing affordable to middle income or workforce households, which are essential to a dynamic regional economy. The costs of housing production - land, labor, materials and "soft" costs - are so high that developers cannot justify building anything but higher end housing. That leaves a gap for moderate income households; a host of government-sponsored programs have helped production of low income housing for many decades. Government (state and local) can provide incentives to builders of affordable and middle income housing by offering property tax abatements, low interest financing, exempt sales taxes for purchases of equipment and materials, work with labor unions to lower hourly wages for construction, and sell or lease government-owned land at discounts to fair market value - provided the builder constructs housing affordable to middle income households. These measures might unlock new supply to meet the large demand. Daniel A. Broxterman Assistant Professor of Real Estate at Florida State University, College of Business What are the most important financial factors to consider when deciding where to live? Most long distance moves are job-related. In conducting a long distance job search, seek an area where you will likely earn a high return on your skill-set. Economists measure that return using “expected real after tax income”. This economic construct implies two financial factors to consider when deciding where to live. The word “expected” suggests you consider not only the job you’re moving for but also your chance of finding another attractive job if the first doesn’t work out. In other words, move for a career, not for a job. The phrase “real after tax” suggests you factor in the local cost of living including not just the cost of housing, but the cost of food, health care, taxes and utilities, for example. What is the biggest mistake people make when planning a move to a new place? Thinking you are average when you are not. Put another way, trusting a cost-of-living calculator can be a costly mistake. These popular websites claim to show how far your current salary goes in another city based on differences across locations in average costs of living. The problem is the calculations assume every household spends the same share of income on housing. In reality, the fraction of income spent on housing typically goes down as income goes up, and even for the same income, some households have tastes for a lot of housing and others very little. When moving from a city with low rents to one with high rents, do your own research to determine the salary bump you would need to afford the same quantity and quality of housing in the new location and don’t rely on the one-size-fits-all calculators on the web. What steps should a person take to determine if an area is right for him/her to move to? Answering this question involves considering amenities in addition to expected real wages. Economists think people will move in and out of an area until the value of wages plus amenities minus housing costs is roughly the same in that area as in other areas that are competing for residents. However, based on what’s important to you personally some places are more valuable than others. So, the first step is deciding what’s really important to you: great public schools, a big house with a big yard, nearby whitewater for kayaking, ethnic restaurants, etc. For example, employers in large and productive cities pay high wages to their workers to offset the high cost of living. Large cities may be crowded and polluted, but they also offer a wide variety of consumption choices that you won’t find in less populated places. If you don’t want a lot of housing space and/or you really enjoy urban amenities, a big city is a good value for you because you can take advantage of high wages and variety and are not put off by high house prices there. I’ll add one more observation from economic research. Over the last quarter century, the share of Americans who move between states each year has been cut in half. Economists aren’t sure why, but possible explanations may suggest one additional step to take and one to avoid in making a location decision. One explanation for the decline is that cities are becoming more similar in terms of both their labor market and quality of life conditions reducing the incentives to move. If that’s the case, I would counsel greater emphasis on careful research of remaining housing-related considerations. Alternatively, it could be that it has become easier and less expensive to learn about differences in jobs, housing costs, and quality of life across places. With the abundance of information easily available on all aspects of a potential relocation that are most important to you, there’s not as much reason to try out a new city on an experimental basis as there was in the past and so I don’t typically suggest that strategy. Is it always a good idea to rent before buying in a new area? Always? That’s a loaded question. However, as with dating, I agree with the financial advice columnists who commonly say to take your time before making a commitment. Redoing a bad home purchase, like a bad marriage decision, can be an expensive proposition. What can local policymakers do to attract and retain new residents? Improve local school choices and resist pressure to restrict new construction and renovation activity. One of the lessons of struggling rust belt cities is that if you fail to educate your workforce, your city will decline. Quality school options are essential to an area’s success in attracting new residents. New residents also need affordable places to reside. One of the lessons of expensive coastal cities is that high housing costs are a self-inflicted wound caused by restricting the supply of new housing. Current owners have an economic interest in resisting new development nearby and will mask their NIMBYism with less self-serving arguments in favor of preserving historic character and reducing environmental impact. Cities and counties need leaders with the vision to see beyond what is best for current owners in a neighborhood and consider what is best for their jurisdictions in the long run. Alex Krieger Professor in Practice of Urban Design at Harvard Graduate School of Design What are the most important financial factors to consider when deciding where to live? Earlier in life it might the where the opportunity to advance one’s career is greatest. Therefore, places that offer a diverse set of employers and institutions related to one’s chosen or pursued profession/career. Later in life – with a certain success in one’s career achieved – it might be the place that offers the highest quality of life within one’s ability to afford living there. What is the biggest mistake people make when planning a move to a new place? The use of the phrase 'when planning’ suggests that one is not doing so on a lark or willy-nilly, which would usually be a big mistake. So, having done some planning, the mistake would be not having a sense of the quality of available housing/neighborhoods in one’s range of affordability. Close behind would be too little research about the social and cultural milieu of the place which would could lead to a diminished social life. What steps should a person take to determine if an area is right for him/her to move to? Each of the factors mentioned above: career opportunities, quality of places to live, their affordability, favorable social networks. Then also cultural and recreational amenities, local traditions and history, ease of access to other nearby places, urban or natural. Is it always a good idea to rent before buying in a new area? I would not elevate that to a universal truth. There may very well be reasons (say commitment to a place and family roots) or circumstances (an opportunistic buy and the means to go for it) that would make buying the right early choice. However, in the absence of such special circumstances it is generally wise to rent first, especially if still in the process of setting away some means to a mortgage. What can local policymakers do to attract and retain new residents? For the majority of citizens, that would first mean making sure that there was ample and affordable choices readily available for housing. Secondly, it would mean maintaining a diverse local economy and thus career/ job options. And close behind would be continuing to expand cultural and recreational amenities to enjoy life.

Methodology

In order to identify the best and worst large cities in which to live, WalletHub compared all of the 62 cities in the U.S. with a population of more than 300,000 each across four key dimensions: 1) Livability, 2) Education, 3) Health, and 4) Local Economy & Taxes. We evaluated these categories using 31 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a scale from 0 to 100, with 100 representing the most favorable living conditions.

We then calculated overall scores for each city using the weighted average across all metrics, which we then used to construct our overall rankings.

Please bear in mind that data for metrics marked with an asterisk (*) were available only at the state level. Furthermore, “city” refers to city proper and excludes surrounding metro areas.

Livability – Total Points: 25

• “Best & Worst Cities for Families” Ranking (includes all measures from the original report except “Health”, “Education” and “Family Activities & Fun”): Quadruple Weight (~8.00 Points)
• “Best & Worst Cities for Recreation” Ranking: Double Weight (~4.00 Points)
• “Best Cities for Sports Fans” Ranking: Full Weight (~2.00 Points)
• “Best and Worst Cities for Pet Lovers” Ranking: Full Weight (~2.00 Points)
• “Best & Worst Cities for People with Disabilities” Ranking: Full Weight (~2.00 Points)
• “Most Diverse Cities in America” Ranking: Full Weight (~2.00 Points)
• “Most and Least Politically Engaged States” Ranking: Half* Weight (~1.00 Point)
• “Best & Worst States for Working Moms” Ranking (includes all measures from original report except “Child Care”): Half* Weight (~1.00 Point)
• “Best & Worst States for Working Dads” Ranking (includes all measures from original report except “Child Care”): Half* Weight (~1.00 Point)
• “Best & Worst Cities to Be a Driver” Ranking: Full Weight (~2.00 Points)

Education – Total Points: 25

• School System Quality (“GreatSchools City” Score): Triple Weight (~18.75 Points)
• “Most and Least Educated Cities” Ranking: Full Weight (~6.25 Points)

Health – Total Points: 25

• “Health” Ranking (from “Best & Worst Cities for Families” report): Double Weight (~3.57 Points)
• Binge Drinking (percentage of adults who self-report having four or more (for women) or five or more (for men) alcoholic beverages on at least one occasion): Full Weight (~1.79 Points)
• Percentage of the Population Smoking Daily: Full Weight (~1.79 Points)
• Cholesterol Check (percentage of adults who have had their blood cholesterol checked within the last five years): Full Weight (~1.79 Points)
• Obesity (percentage of adults with a BMI of 30 or higher): Full Weight (~1.79 Points)
• Percentage of Adults in Excellent or Very Good Health: Double Weight (~3.57 Points)
• Participation in Physical Activities: Full Weight (~1.79 Points)
• Percentage of Adults Eating Fruits or Vegetables (less than one serving per day): Full Weight (~1.79 Points)
• Number of Fitness Centers per 100,000 Residents: Full Weight (~1.79 Points)
• Percentage of People Bicycling or Walking to Work: Full Weight (~1.79 Points)
• Life Expectancy: Double Weight (~3.57 Points)

Local Economy & Taxes – Total Points: 25

• “Job Market” Ranking (from “Best & Worst Cities to Find a Job” report): Full Weight (~3.33 Points)
• “Best Large Cities to Start a Business” Ranking: Full Weight (~3.33 Points)
• “Metro Areas with the Best and Worst Budgeters” Ranking (includes only “Spending & Debt Ranking” and “Credit Ranking” measures from original report): Full Weight (~3.33 Points)
• “Best and Worst Cities for First-Time Home Buyers” Ranking (includes only “Housing Affordability Ranking” and “Real-Estate Market Ranking” measures from original report): Full Weight (~3.33 Points)
• “Most & Least Energy-Expensive States” Ranking: Half* Weight (~1.67 Points)
• “Cities with the Fastest Growing Economies” Ranking: Full Weight (~3.33 Points)
• “States with the Best & Worst Tax Rates as a % of Income” Ranking (Middle Income Ranking): Full Weight (~3.33 Points)
• Household Income Adjusted by Cost Of Living: Full Weight (~3.33 Points)

 

Sources: Data used to create these rankings were obtained from the U.S. Census Bureau, the U.S. Bureau of Labor Statistics, the Federal Bureau of Investigation, the Centers for Disease Control and Prevention, the Council for Community and Economic Research, the Child Care Aware of America, the National Partnership for Women & Families, GreatSchools.org, US Environmental Protection Agency, Environmental Working Group, Measure of America, Yelp and WalletHub research.

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