Homebuyers

The Best Places to Live in 2026 Are Affordable and Family-Friendly

As rising housing costs and pricier everyday essentials continue to reshape where Americans want to live, affordability is increasingly winning out over aspiration.

The shift is reflected in the newly released 2026-2027 Best Places to Live rankings from U.S. News & World Report, which found that two neighboring suburbs outside Indianapolis claimed the top spots for the first time in the ranking’s history.

Leading the pack was Carmel, which ranked No. 1 thanks to strong scores for desirability, affordability, and job market strength.

Neighboring Fishers landed at No. 2, boosted by affordability, quality of life, and a robust employment picture.

The back-to-back wins for the Indianapolis suburbs point to a broader trend shaping where people are putting down roots: many Americans are increasingly prioritizing affordability without sacrificing amenities, schools, or economic opportunity.

“The 2026-2027 Best Places to Live rankings offer consumers a look at places throughout the U.S. that might meet their needs for livability best,” Erika Giovanetti, consumer lending analyst at U.S. News & World Report, said in a statement.

“Carmel and Fishers, Indiana, are two neighboring locations that offer residents a good quality of life without breaking the bank,” she added.

Local Carmel agent Jeffrey Cummings with RE/MAX Complete said he’s seen firsthand “that Carmel’s top ranking comes down to how effortlessly it supports family life. The exceptional public schools and incredibly safe neighborhoods provide the perfect foundation for raising kids, while the beautiful parks and walkable cultural districts offer endless entertainment.”

Texas also emerged as a standout in this year’s rankings, with four cities landing in the top 10 thanks largely to affordability and strong local economies.

Flower Mound, a suburb of Dallas, ranked No. 3 after earning high marks for affordability, desirability, and job opportunities. Nearby Frisco secured the No. 9 spot, performing especially well for desirability and quality of life.

Meanwhile, Leander, outside Austin, ranked No. 8 due to strong desirability and job market scores, while Sugar Land climbed eight spots to No. 10, helped by strong marks for desirability.

Other cities rounding out the top 10 included Ankeny, Iowa at No. 4, Johns Creek, Ga. at No. 5, Hoover, Ala. at No. 6, and Rochester Hills, Mich. at No. 7.

To determine the rankings, U.S. News evaluated cities based on affordability, desirability, quality of life, and job market strength. The methodology incorporates survey responses from thousands of Americans about what matters most in a place to live, alongside data from government agencies and internal research, including information from the U.S. Census Bureau, the Federal Bureau of Investigation, and the National Oceanic and Atmospheric Administration.

Affordability emerged as an especially important factor this year.

“While U.S. News’ consumer survey indicated that quality of life and affordability were close in importance, cost-of-living concerns resulted in many Americans putting what they can afford above their aspirations,” said Giovanetti.

The 10 best places to live in 2026, according to U.S. News:

1. Carmel, Ind.
2. Fishers, Ind.
3. Flower Mound, Texas
4. Ankeny, Iowa
5. Johns Creek, Ga.
6. Hoover, Ala.
7. Rochester Hills, Mich.
8. Leander, Texas
9. Frisco, Texas
10. Sugar Land, Texas