Last year Utah was the happiest state in America, but this year, a different state took the No. 1 spot on WalletHub's annual ranking.
To determine where people living in America are the happiest, the personal finance website compared the 50 states across 30 metrics within three key categories:
- Emotional and physical well-being
- Work environment
- Community and environment
Each metric was graded on a 100-point scale, with a score of 100 representing maximum happiness.
"The happiest states are those that provide above-average quality of life in a wide variety of areas, from strong state economies and high quality physical and mental health care to adequate amounts of leisure time and good weather," WalletHub analyst, Chip Lupo, stated in the report.
California and Florida, two states that are typically synonymous with good weather all year round and retirement, didn't even rank in the top 10. The Golden State ranked No. 13 while the Sunshine State ranked No. 14.
Hawaii is the happiest state in America
Money Report
Hawaii ranked as the No. 1 happiest state in the U.S. with an overall score of 68.71.
Though it ranked No. 31 for work and environment, it came in at No. 1 and No. 3 for emotional and physical well-being and community and environment, respectively.
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According to WalletHub, Hawaii had the lowest depression rate in the U.S. and 86% of adults reported they are in good or better health. It also had one of the lowest unemployment rates and the second-highest share of households with an annual income above $75,000.
However, Hawaii is also one of the most expensive states to live in.
In CNBC's 2024 America's Top States for Business study, Hawaii tied with Massachusetts as one of the most expensive states to live in. The average home price in Honolulu is $1,674,195 and the monthly energy bill is $359.53, according to CNBC.
Only one in five households in the state can afford to buy a single-family home, according to a May report from the University of Hawaii.
The report also stated that the 2023 Maui wildfires and higher interest rates have made the housing situation in the Aloha state even worse.
The 10 happiest states in America
- Hawaii
- Maryland
- New Jersey
- Utah
- Delaware
- Minnesota
- Connecticut
- Idaho
- Nebraska
- Massachusetts
Maryland moved up from No. 3 to the No. 2 spot on the list. The Old Line State had a total score of 64.67, according to WalletHub's report.
The state ranked third in the emotional and physical well-being metric, tenth in the work environment and sixth in the community and environment rank.
Maryland's capital city Annapolis is also known as the world's sailing capital, according to the state government.
Annapolis is home to the Maryland State House, the oldest state capital still in continuous legislative use.
While Maryland is the No. 2 happiest state in the U.S., it's important to note that the cost of living in Maryland is 16% higher than the national average, according to RentCafe. Housing is 44% higher than the national average, while utilities are 10% higher.
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