The prime reason: According to our data, no other part of the country has had such strong recent employment growth, sizzling-yet still affordable-housing values and dazzling prospects for job creation. Take Gainesville, a small city (metro area pop. 186,300) in north central Florida. Its unemployment rate is a microscopic 2.8% (the national average: 5.9%), and this leafy college town enjoyed 6.2% job growth over the past year, which is nearly double the national average, according to Arizona State University's Economic Outlook Center. "In the past three years, Florida's economy has come roaring out of the gate, doing much better than the nation as a whole," says Atlanta Federal Reserve economist Andrew Krikelas.
The Sunshine State also offers a magnetic lure for tax-weary workers. It's one of only nine states with no tax on earned income. (The others: Alaska, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.)
So toast the Florida Five with a raised glass of Gatorade--that popular thirst quencher invented at the University of Florida. All but Gainesville are breaking into our top 10 for the first time since we started our annual ranking in 1987. The other honorees: No. 3, Jacksonville (up from 67 last year); No. 5, Ocala (78); No. 6, Fort Lauderdale (56); and No. 10, Naples (28). Also, Gainesville becomes only our second southern winner, after 1994's No. 1, Raleigh/Durham/Chapel Hill, N.C.; it slipped to a still outstanding No. 8 as job growth slowed to 3.6% from last year's torrid 4.9%.
Excluding the Florida quintet, the remaining cities in the winners' circle dot the map, reflecting the nation's generally healthy economy. Two are former champions: No. 2, Rochester, Minn. (tops in '93 and our runner-up last year too), continues to attract new employers to counterbalance some shrinkage at its famed Mayo Clinic, IBM and U S West operations. Thanks to booming Microsoft nearby, No. 4, Seattle (No. 8 last year and No. 1 in '89), is faring remarkably well in the face of 6,900 Boeing layoffs last year. Finally, there are two more new faces in the top 10: No. 7 is the Salem, N.H./Haverhill, Mass. area (up from 146), which offers no state taxes on earned income for its New Hampshire residents; it is only about an hour's drive to Boston's top doctors, and cultural and sporting attractions. And No. 9, fast-growing Las Vegas (up from 43), is transforming itself from the U.S. gambling capital to a Mecca for young ambitious families who may never set foot in a casino. (For the complete ranking of all 300 areas, choose "The Results" below.)
All in all, our top 10 cities boast the kinds of attributes Americans value most today in choosing a place to live. Three key factors:
 | Hardy local economies. For example, the Florida Five's kind of stable growth and recession-resistance can enhance your life whether you're age 27 or 72. |
| Medium to small populations. Let's face it. America prefers smaller cities. In our top 10, only Seattle and Fort Lauderdale have populations larger than 1 million. Most have between 200,000 and 1 million people. |
| And low taxes. In eight of our winners, residents pay no state taxes on earned income (exceptions are Raleigh/Durham/Chapel Hill, N.C. and Rochester, Minn.--plus the Massachusetts side of the Salem, N.H./Haverhill, Mass. area). |
