In a recent analysis by WalletHub, Austin has clinched the top spot as the best state capital in the United States for living conditions in 2025. According to FOX 7 Austin, this isn't the city's first rodeo—Austin has consistently held this position since at least 2019. The study compares 50 state capitals across 48 key indicators, including affordability, economic well-being, quality of education, health care, and quality of life.
Earning high marks in both the economic well-being and quality of education and health categories, Austin rises to number one in these areas. Its economic prowess is highlighted by a leading median household income of $87,519, which is adjusted for cost of living, and a robust environment for businesses, with the fourth-highest growth rate of new businesses nationwide. This data, together with additional metrics, ensure Austin's state capital index sits at a comfortable 64.75, placing it nearly four full points above the runner-up, Madison, Wisconsin. All of these factors contributing to WalletHub's esteem for Austin were detailed in Austin CultureMap.
The study also applauds Austin's education system, proclaiming it to be one of the most educated cities in the United States. "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," states WalletHub's analysis. Complementing this, Austin takes pride in the third-highest percentage of high schoolers who graduate within four years.
Quality of life in Austin is nothing to balk at, with the city ranked eleventh overall in the United States. Austin continues to attract a significant number of millennial newcomers, and its residents enjoy the second-highest life expectancy. Boasting an extremely high number of attractions and restaurants per capita, the capital makes for a vibrant urban setting that has drawn many new residents over recent years, a detail echoed by the analysis performed by WalletHub.
The five best state capitals following Austin on WalletHub's 2025 list are Madison, Raleigh, Boise, and Atlanta, and rounding out the top ten are Lincoln, Salt Lake City, Denver, St. Paul, and Columbus. Meanwhile, those capitals making up the bottom five were Augusta, Trenton, Jackson, Baton Rouge, and Dover.
