Austin is continuing a lukewarm streak of being labeled one of the nation's mildly happy cities for the second year in a row.
The Capital of Texas is only the second happiest city in the state, but appeared 59th of 182 on personal finance website WalletHub's new national list of the "Happiest Cities in America (2025)."
WalletHub annually ranks the most populous U.S. cities based on 29 metrics, categorized by each city's emotional and physical well-being; income and employment; and community and environment.
The top three happiest cities on the list are all located in California: Fremont (No. 1), San Jose (No. 2), and Irvine (No. 3), followed by Sioux Falls, South Dakota, at No. 4; and Overland Park, Kansas, at No. 5.
Austin's reputation as a somewhat happy city is well established: It was named the No. 65 happiest city in America in a separate 2024 report by SmartAsset (that only analyzed 90 U.S. cities).
Austin's happiness really shines when it comes to its residents' financial and employment stability, as the city ranked No. 22 nationwide in that category.
The U.S. Census Bureau says Austin households make a median income of $91,461 annually, but research says money doesn't guarantee happiness. Individuals stop seeing correlated improvements in happiness once they hit about $75,000 a year.
Financial stability can lead to more flexibility when it comes to a person's lifestyle choices, but it's not the only factor that contributes to someone's happiness, the report says.
"Therefore, when deciding where to live to maximize your happiness, you’ll want to pick a city that offers more than just a decent average income," WalletHub analyst Chip Lupo. "The ideal city provides conditions that foster good mental and physical health, like reasonable work hours, short commutes, good weather, and caring neighbors.”
Austin came in at No. 44 for its "emotional and physical well-being," and at No. 142 for its "community and environment" ranking.
There's so much more to Austin's happiness that can't be defined by a collection of rankings. Besides large-scale events like SXSW, ACL, and Formula 1, there's plenty of hometown entertainment to be found throughout the city.
Plus, Austin's vibrant restaurant scene is constantly innovating to bring diverse cuisines to residents, from a new Mediterranean food trailer to buzzy food festivals featuring bites from talented chefs.
Other happy cities in Texas
Plano was dubbed the No. 1 happiest Texas city, and ranked No. 20 overall. But in general, Texas cities aren't very happy.
Austinites can at least find some solace in not being as miserable as Brownsville, a South Texas town that took the title as the unhappiest city in Texas. Brownsville ranked dead last in the statewide comparison and No. 170 nationwide.
Here's how other Texas cities fared in the report:
- No. 81 – Irving
- No. 101 – Garland
- No. 113 – Grand Prairie
- No. 124 – Dallas
- No. 125 – Fort Worth
- No. 128 – Arlington
- No. 151 – Houston
- No. 152 – Laredo
- No. 155 – Lubbock
- No. 156 – Amarillo
- No. 158 – El Paso
- No. 164 – San Antonio
- No. 167 – Corpus Christi
