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Best places to live methodology

When it comes to choosing the perfect place to live, the decision is highly personal and dependent on various factors. To help you make an informed choice, Bankrate has conducted extensive research, considering key aspects like affordability, job opportunities, well-being, diversity, and net migration. In this guide, we’ll break down the methodology and data sources used to determine the best places to live across the United States.

Categories and Weighting

We’ve divided our evaluation into five primary categories, each representing a crucial aspect of what makes a location an ideal home. Here’s a breakdown of these categories and their respective weightings:

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  1. Well-being: 30%
  2. Job market: 25%
  3. Affordability: 20%
  4. Net migration: 15%
  5. Diversity: 10%

Understanding the Data

  1. Well-being

To assess well-being in each city, we relied on data from the Sharecare Community Well-Being Index. This index is based on millions of surveys conducted in communities across America, measuring factors from physical and emotional health to financial security and community resources. A perfect score is 100, indicating optimal well-being.

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Source: Sharecare, Community Well-Being Index (CWBI) Location specificity: Metro area Update cadence: Annually Data last updated: 2021

  1. Job Market

The job market evaluation was based on two key data sets from the U.S. Bureau of Labor Statistics. We aimed to gauge how conducive an area is to securing employment. One dataset provides the local unemployment rate, while the other offers information on the area’s total number of employees.

Unemployment rate: Source: U.S. Bureau of Labor Statistics, Local Area Unemployment Statistics Location specificity: Metro area Update cadence: Monthly Data last updated: May 2023

Total employees year-over-year: Source: U.S. Bureau of Labor Statistics, Employees on nonfarm payrolls by state and metropolitan area Location specificity: Metro area Update cadence: Monthly Data last updated: May 2023

  1. Affordability

Affordability is determined by considering three sets of data: cost of living, average income, and median home-sale price. These metrics provide a comprehensive view of the financial aspects of living in a particular area.

Cost of living: Source: The Council for Community and Economic Research, Cost of Living Index Location specificity: Varies between city and metro area; city is prioritized if both exist Update cadence: Quarterly Data last updated: Q4 2022

Average income: Source: U.S. Bureau of Economic Analysis, Personal Income by County and Metropolitan Area Location specificity: Metro area Update cadence: Annually Data last updated: 2021

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Median home-sale price: Source: Redfin Data Center, Monthly Housing Market Data Location specificity: City Update cadence: Monthly Data last updated: May 2023

  1. Net Migration

This metric tracks population changes in an area, indicating how many new residents are moving in and how many previous residents are moving out. Data for this evaluation was sourced from the U.S. Census Bureau.

Source: U.S. Census Bureau, Metropolitan and Micropolitan Statistical Areas Population Totals and Components of Change: CBSA-EST2021 Location specificity: Metro area Update cadence: Annually Data last updated: 2021

  1. Diversity

Diversity contributes to the cultural richness of an area. We assessed an area’s diversity using U.S. Census Bureau data, which measures racial diversity based on seven race groups.

Source: U.S. Census Bureau, 2020 Census Redistricting Data Location specificity: Metro area Update cadence: Every decade Data last updated: 2020 Census

Calculating the Scores

Each city on our list received a “weighted sum score” based on the above data. This score was then compared to other cities to determine rankings within a particular state. The formula used is as follows:

Weighted sum score = (Well-being * 0.30) + (Unemployment rate * -0.20) + (Total employees year-over-year * 0.05) + (Cost of living * -0.10) + (Average income * 0.05) + (Median home sale price * -0.05) + (Net migration * 0.15) + (Diversity * 0.10)

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Note: Negative values are assigned for certain factors (e.g., unemployment rate) where a lower score indicates better performance.

Other Ranking Considerations

  • Cities with populations larger than 50,000 were included.
  • Only the top-scored city from each Metropolitan Statistical Area (MSA) was considered.
  • Cities with data for at least five of the eight metrics were included.

In cases where a metric was missing, the city was assigned the state average for that metric.

Conclusion

Choosing the best place to live involves considering a multitude of factors, and our comprehensive research aims to make this decision-making process easier for you. By understanding the data behind each category, you can make an informed choice about where to call home. Explore our list and discover the perfect place that suits your unique preferences and lifestyle.

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