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San Francisco falls from 27th to 126th in ranking of best US cities

May 24, 2025
in Business
San Francisco falls from 27th to 126th in ranking of best US cities
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San Francisco has plummeted in the rankings of America’s best cities as its soaring cost of living, rampant crime, homelessness and an exodus of companies takes a major toll.

The once shining City by the Bay fell from 27th last year to 126th in the most recent study by the Milken Institute, which rates metro areas nationwide.

The precipitous fall from grace comes after San Francisco was ranked No. 1 as recently as 2020 — the year that set off its COVID-induced struggles.

The Milken Institute’s annual report gauges the best cities based on metrics including job and wage growth, affordable housing, economic equality and other factors.

San Francisco, once rated the best city in the US in which to live, has fallen on hard times. SeanPavonePhoto – stock.adobe.com

At the top of the list was Raleigh, NC, followed by Ogden, Utah and Salt Lake City. Huntsville, Ala. and Colorado Springs, Colo. rounded out the top five.

Since 2020, several major companies, including X, Oracle, Tesla, Hewlett Packard, Charles Schwab and Palantir have relocated their headquarters from the San Francisco Bay Area to states like Texas and Colorado. The companies cited California’s high costs and regulatory challenges, and a more business-friendly climate in the other states.

This trend reflects a broader shift as corporations seek lower taxes, reduced operational expenses, and better economic conditions, impacting the Bay Area’s commercial real estate and job market.

Since the pandemic, the Bay Area also has faced significant challenges related to crime.

Oakland has experienced a surge in homicides, with 114 reported in 2023, marking the fourth consecutive year with over 100 homicides.

The city’s lack of affordable housing as well as rampant crime and homelessness have led to a deterioration in the quality of life. Anadolu via Getty Images

Meanwhile, a brazen wave of shoplifting prompted California Gov. Gavin Newsom to sign legislation in August aimed at combating organized retail crime.

The San Francisco Police Department has deployed high-tech drones equipped with surveillance capabilities to enhance crime-fighting efforts, leading to numerous arrests and improved response times.

San Francisco is also consistently ranked among the most expensive cities in the US alongside New York, San Jose, Calif., and Honolulu.

The deterioration in San Francisco’s quality of life has had political repercussions.

In the Nov. 5 mayoral election, billionaire philanthropist and Levi Strauss heir Daniel Lurie defeated incumbent Mayor London Breed, winning approximately 56% of the vote to Breed’s 44%.

The San Francisco Bay Area has also been plagued by a surge in violent crime as well as retail theft. Getty Images

Lurie, founder of the non-profit Tipping Point Community, is the first political outsider to be elected as San Francisco’s mayor since 1911.

His campaign focused on addressing crime, homelessness and housing affordability.

During the race, Lurie pledged to secure 1,500 shelter units within his first six months in office and to prioritize public safety by increasing police staffing.



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