The fourth Family Friendly Hotspots report ranked the Potteries only behind Plymouth and Wolverhampton as the best place to live.
The city's position is based on key factors such as housing affordability, educational achievements and low crime rates.
Stoke-on-Trent City Council leader Mohammed Pervez said: â€œStoke-on-Trent is a great place to live with affordable housing, swathes of parks and incredibly friendly and warm local people.
â€œOur economy is one of the fastest growing in the UK, but the city still has its character and history.
â€œBusinesses are investing here and we have masses of space to grow and prosper even further. This is a city bursting with energy and opportunity.â€
The city's Building Schools for the Future programme has seen £270 million invested in secondary and special schools.
This reports focuses mainly on investment in schools and facilities for families but investment in the city is much broader than that. The Potteries have faced a lot of problems not least during the latest recession. We opened the Martin and Co office in Hanley just as the recession took hold, the area wasn't affluent beforehand but we have seen how hard the city has been hit. It is great to see the investment going on around the city and reports of this nature give everyone a boost.
House prices are below the national average which gives families more choice and also means there are still some great investment opportunities. Here at both the local Martin and Co offices in Stoke on Trent and Newcastle under Lyme we talk to property investors on an almost daily basis showing that this is an area well worth investing in.