The top 10 most livable small cities in America are located in Troy, Michigan and Oshkosh, Wisconsin.

The 2024 study by SmartAsset on the most livable small cities in the United States has been released.

According to the research, small cities are defined as having a population ranging from 65,000 to 100,000 individuals. To determine the rankings, SmartAsset utilized data from the Bureau of Labor Statistics for 2023, the U.S. Census Bureau's American Community Survey for 2022, and the Census County Business Patterns Survey for 2021.

SmartAsset ranked the cities by comparing them across the following metrics:

• Housing costs as a percentage of household income
• Percentage of residents below the poverty line
• Unemployment rate
• Percentage of residents with health insurance
• Average commute time
• Proportions of art, entertainment and recreating establishments
• Proportion of accommodation and food service establishments
• Proportion of healthcare establishments

In the top 10 small cities, the Midwest has the highest number of cities, with three in Michigan and three in Wisconsin.

Financial planners typically suggest that housing costs should not exceed 28% of your gross income. However, in these two states, we often observe housing costs being lower than even 20%, which provides more budget room for residents.

The biggest surprises for DeJohn were the numerous small cities with housing costs exceeding the recommended amount. In Florida and New Jersey, some residents paid more than 40% of their annual income towards housing.

"DeJohn emphasizes that the cost pressures experienced by people in small cities are not limited to just large cities. He suggests that it is crucial to examine these metrics on a city-by-city basis rather than generalizing the situation based on the size of the city."

The No. 1 most livable small city: Troy, Michigan

In the U.S., SmartAsset ranked Troy, Michigan as the most livable small city.

The Michigan city was ranked No. 1 due to its residents having the most affordable housing relative to their incomes. Housing costs in the city average 15% of the median household income of $109,444, which is approximately $1,365.

In the top 10 cities ranked, Troy had the lowest average housing cost of 15%, which is lower than the usual recommended 28%. This is considered somewhat unheard of in terms of affordability, according to DeJohn.

According to this study, Troy ranks highly due to its residents having health insurance, which is linked to livability.

According to DeJohn, interpreting livability means that people can meet their basic needs, and having health insurance is crucial not only for individuals but also for their community because it provides an automatic stabilizer.

Troy, located about 20 minutes from Detroit, provides residents with access to numerous parks, shopping centers, and golf courses. The city is also home to several corporate headquarters, including HTC Global Services.

According to Zillow, the average home value in Troy, Michigan, increased by 7.6% to $438,375 over the past year.

10 most livable small cities in America

1. Troy, Mich.
2. Rochester Hills, Mich.
3. Eau Claire, Wisc.
4. Franklin, Tenn.
5. Redmond, Wash.
6. Appleton, Wisc.
7. Apex, N.C.
8. Plymouth, Minn.
9. Livonia, Mich.
10. Oshkosh, Wisc.

Rochester Hills, located in Michigan, is the No. 2 most livable small city.

Rochester Hills' housing costs are 16.8% of the median household income of $107,137, which amounts to approximately $1,504.

Rochester Hills, like Troy, excelled in the health insurance category, but it also distinguished itself with its ranking in the percentage of residents living below the poverty line — ninth best out of the 281 cities surveyed.

"DeJohn emphasizes that poverty is crucial not only for individuals to escape it but also for the stability of the entire community. If a community is impoverished, more residents will feel desperate, which will negatively impact the community's dynamics."

Rochester Hills, a suburb of Detroit, is located near Troy and has an average home value of $447,050, which is up 6.8% from the previous year.

The Village of Rochester Hills, a 375,000-square-foot outdoor shopping district, is also located in the city.

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