Austin bumped reigning city Denver to the No. 2 spot, with San Jose, California claiming the No. 3 spot.
"We celebrate what we’re doing right to be ranked first, recognizing it also highlights the accompanying affordability, equity, and mobility challenges that our city faces," said Austin Mayor Steve Adler in a news release. "Inherent in that ranking is the strength to manage growth so we can preserve Austin's special spirit.”
About 50 people a day move to Austin, according to the report. The city of nearly 2 million people, whose median age is around 33 years old, is still one of the fastest-growing metro areas in the country.
And while the cost of housing exceeds the national average at $262,182, the report said Austin offers a better value than similarly-sized metros when you compare housing costs to median houshold income.
The report also pointed out Austin is among the cities with the most amount of traffic congestion, with 87 percent of Austinites commuting each day.
Here are the top 10 cities on the list this year:
1. Austin, TX
2. Denver, CO
3. San Jose, CA
4. Washington, DC
5. Fayetteville, AR
6. Seattle, WA
7. Raleigh & Durham, NC
8. Boston, MA
9. Des Moines, IA
10. Salt Lake City, UT
See the 100 cities that made the list here.