While most real estate data stories focus on big cities and major metro areas, the number crunchers at WalletHub are putting their focus on the cozier-sized municipalities with its list of 2025’s Best Small Cities in America, as well as expert commentary.
For this analysis, WalletHub compared more than 1,300 cities with populations between 25,000 and 100,000 across 45 key indicators of livability divided between the categories of affordability, economic health, education and health, quality of life, and safety. Housing costs and school system quality were of prime importance.
Topping the list was Carmel, Indiana, which was cited for having one of the lowest unemployment rates in the country, a median annual household income is nearly $135,000 – the 125th among the cities in the study – and a citywide median credit score of 775 which is the 20th highest in the country.
The other small cities in the top five included Brookfield, Wisconsin; Apex, North Carolina; Lexington, Massachusetts; and Westfield, Indiana. At the other end of the spectrum was Bessemer, Alabama, which scored the lowest ranking among the small cities in the data analysis.
“Moving from a bustling metropolis to a small city could drastically cut down your cost of living,” said Chip Lupo, WalletHub analyst. “On top of that, the best small cities offer strong job markets, high-quality education, good health care, safe living conditions and plenty of local flair to help you achieve a high quality of life. While small cities may lack some advantages of big cities, like robust public transportation systems, they make up for these shortcomings in other areas.”
Photo courtesy of City of Carmel
