Meghan Markle and Prince Harry are happier living in the U.S. with their son Archie – and they wouldn’t have it any other way.

Nearly a year ago, the Duke and Duchess of Sussex announced they would take "a step back" as senior members of the British royal family and instead work independently, splitting their time between the United Kingdom and North America. 

The former American actress, 39, and the British prince, 36, currently reside in Santa Barbara, Calif. with their firstborn, 1.

"Despite everything that has been going on this year, they don’t regret their move to the U.S.," a source close to the couple told People magazine on Wednesday. "They love that they are able to focus on projects and causes that are important to them."

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Prince Harry and Meghan Markle tied the knot in May 2018.

Prince Harry and Meghan Markle tied the knot in May 2018. (Photo by Karwai Tang/WireImage/Getty Images)

Harry and Markle are now focusing on several passion projects, including their new Archewell foundation, as well as a Spotify podcast named Archewell Audio. They released their first episode shortly before New Year’s Day.

"It was always their dream to be financially independent and pay their own way," the source explained to the outlet. "The year started out with a lot of excitement and anticipation. Harry was finally doing what he’d wanted to do for years, and to have Meghan and Archie with him was all he could have asked for."

"Meghan and Harry took a huge leap of faith to embark on their new life," added the pal.

Another source recently told Us Weekly that Harry is especially feeling free since the family’s royal exit.

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"Harry doesn’t have any regrets about leaving the royal family whatsoever and is really happy in Montecito," the insider told the outlet on Tuesday. 

A source told Us Weekly that Prince Harry "doesn't have any regrets about leaving the royal family whatsoever and is really happy in Montecito."

A source told Us Weekly that Prince Harry "doesn't have any regrets about leaving the royal family whatsoever and is really happy in Montecito." (Photo by Karwai Tang/WireImage/Getty Images)

"He and Meghan are enjoying their new life in California – being a normal family and having the freedom to make their own decisions without anyone watching over them. Harry has grown in confidence since the move. Harry isn’t looking back, although he does miss his friends at home."

Back in January 2020, the Duke and Duchess of Sussex announced that their decision to step back came "after many months of reflection and internal discussions."

"We have chosen to make a transition this year in starting to carve out a progressive new role within this institution," the couple shared on Instagram. "We intend to step back as ‘senior’ members of the Royal Family and work to become financially independent, while continuing to fully support Her Majesty The Queen. It is with your encouragement, particularly over the last few years, that we feel prepared to make this adjustment.

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"We now plan to balance our time between the United Kingdom and North America, continuing to honor our duty to The Queen, the Commonwealth, and our patronages," they continued. "This geographic balance will enable us to raise our son with an appreciation for the royal tradition into which he was born, while also providing our family with the space to focus on the next chapter, including the launch of our new charitable entity."

The Duke and Duchess of Sussex currently reside in Santa Barbara, Calif.

The Duke and Duchess of Sussex currently reside in Santa Barbara, Calif. (Photo by Steve Parsons - WPA Pool/Getty Images)

The couple added they will continue to work with Queen Elizabeth, 94, as well as Harry’s father Prince Charles and older brother Prince William.

They will keep their royal titles.