WalletHub Names Carmel Indiana Best Small City in America 2025

A recent WalletHub study ranked more than 1,300 U.S. small cities, defined as those with populations between 25,000 and 100,000, based on affordability, economic health, education and health, quality of life, and safety. Carmel, Indiana, topped the list for the second consecutive year due to its strong economic indicators, including a low unemployment rate of 3.3%, a high median household income near $135,000, and an excellent median credit score of 775. Other top-ranked small cities included Brookfield, Wisconsin; Apex, North Carolina; Lexington, Massachusetts; and Westfield, Indiana. Cities in Pennsylvania, such as Lancaster, placed among the best small cities nationally, while New Jersey cities like Atlantic City, Vineland, and Millville also scored well, particularly in quality of life and affordability. Holland, Michigan, ranked 18th nationally and was the highest-ranked Michigan city, noted for its quality of life and economic health. The study highlights the benefits of small cities, such as lower costs of living and strong job markets, making them attractive alternatives to larger metropolitan areas.