Which Is America's Best City?

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After Raleigh, the next highest-ranked cities were Arlington, Va.; Honolulu; Scottsdale, Ariz.; and Irvine, Calif. Larger cities placed lower: New York was 14th, while Los Angeles ranked 53rd and Chicago 75th. The highest-ranked city with a population greater than 1 million was San Diego, at seventh. Washington, D.C., which has 588,433 people, came in sixth. Since some criteria were evaluated on a per population basis, places did not necessarily score higher for having a larger number of establishments or amenities.

At the bottom of this ranking of 100 cities were Detroit; Stockton, Calif.; Akron, Ohio; Laredo, Tex.; and Cleveland.

A Park With a City in It

Many urbanites appreciate cities’ bustling streets and constant activity. Raleigh, though active, is often described as “a park with a city in it,” according to the city tourism site, and the downtown area has wide sidewalks, public art, and outdoor cafes, according to the Downtown Raleigh Alliance. With several colleges in the area, it is also a young city and about one-fifth of the population are in their 20s, compared to a national rate of 13.8 percent, show 2010 Census data.

“The Raleigh area features a cluster of great universities, so education is part of the culture of the community,” says Ford W. Bell, president of the American Association of Museums. “Integral to this culture are the region’s museums, rooted as they are in education and lifelong learning.”

Most residents drive, though Raleigh also has a public bus system, including a free bus service downtown.

High quality of life combined with new and expanding business in the region have attracted more residents to Raleigh, one of the fastest-growing U.S. cities: The population in the metro area expanded by an estimated 12.2 percent from 2009 to 2010, according to economic and demographic data company Woods & Poole Economics.

Growing Economy

The city’s largest employers are the state and public school system, according to Raleigh Economic Development. Strong technology, defense technology, biotechnology, and life sciences sectors and emerging cleantech and smart grid industries have bolstered the local economy, says Sauls.

In the weak U.S. economy, Raleigh’s unemployment rate increased to 7.6 percent in July 2011 from an annual average of 4.4 percent in 2008, BLS data indicate, but joblessness in the city remains lower than the metro area, which reached 8.4 percent, and lower than the U.S. rate of 9.1 percent.

Even in today’s tough environment, a number of Raleigh companies are expanding, including software company Red Hat, which announced in January that it would add 540 jobs. The company had looked at other cities, but as Chief Executive Officer Jim Whitehurst told reporters, Raleigh offered the best overall package.

“It’s a combination of things: There’s a great university system here so it’s easy to find qualified talent and it’s a great place to hire people. The relative cost of living is low, the cost of real estate is dramatically lower [than other cities], and the state is pro-business,” says Whitehurst, who moved to the area in 2008 from Atlanta. And with most of the benefits of a major metropolitan area, he says, “it’s a wonderful lifestyle.”

Click here to see which 50 cities placed highest in our ranking.

Wong is a lifestyle and real estate reporter for Bloomberg Businessweek.