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LANCASTER, Pa. (CBS) – Lancaster, Pennsylvania has been ranked as the best place in the U.S. to retire, according to U.S. News and World Report.

In its annual rankings released on Wednesday, Lancaster is up from No. 2 due to increases in housing affordability and the overall happiness of its residents.

The report found Lancaster is affordable compared to other major metro areas, and homes are less expensive than the national median home sale price. However, other living expenses like food, health, transportation and miscellaneous expenses fall in line with the national average.

U.S. News analyzed 125 metro areas in the U.S. based on housing affordability, desirability, health care and overall happiness.

Rounding out the top 10 were:

1. Lancaster, Pa.
2. Fort Myers, Fla.
3. Sarasota, Fla.
4. Austin, Texas
5. Pittsburgh, Pa.
6. Grand Rapids, Mich.
7. Nashville, Tenn.
8. San Antonio, Texas
9. Dallas–Fort Worth, Texas
10. Lakeland, Fla.

Philadelphia ranked 31st and Bakersfield, California came in at 100.

Lancaster came in 32nd in last year’s “Best Places To Live” in the nation.

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