In 1797, Albany became the official capital of New York State. Since then, Albany has been a center for banking, railroads, and international trade. Four New York state governors went on to become President of the United States. The telegraph, electric motor, and celluloid plastic were all pioneered here.

In 1797 the decision was made to establish Albany as its permanent capital. Albany's rich history, its central location on the Hudson, being a trading and military planning hub, as well a military supply center, are all reasons it was chosen to be the capital after the burning of Kingston.

Albany's housing expenses are 3% higher than the national average and the utility prices are 3% lower than the national average. Transportation expenses like bus fares and gas prices are 2% higher than the national average. Albany has grocery prices that are 9% higher than the national average.

The New York ranking crowns the state's capital as the best place to live given its "lively downtown that serves as both a commercial and cultural center," its "old-world appeal" and its proximity to a legion of outdoor treasures, from the Finger Lakes wine region to Massachusetts' Berkshire Mountains.