Every week or so, I get an e-mail that runs like this:
"My husband and I are teachers in north San Diego County and we would like to live
here for decades. However, our salaries are not enough to buy any of the houses
we have seen. What advice can you give us?"
Swap "teachers" for any number of moderately-paid professions, and "north San Diego
County" for any number of insanely overpriced real-estate markets, and you have
a lot of people in the same uncomfortable boat.
For many, the options are these:
- Continue to rent -- and despair;
- Stretch your finances to the limit with an oversized, risky mortgage and suffer
from ulcers for the next 10 years;
- Look for somewhere else to live.
If you're ready to consider Door No. 3, read on for some options.
We asked Bert Sperling of Sperling's Best Places
fame to help compile a list of places where homes are relatively cheap, the cost
of living is affordable and the local economy is going strong.
Economies are important, since robust ones typically mean plenty of opportunities
and growing incomes. Strong economies also tend to lead to better quality of life,
Sperling said, by lowering crime and divorce rates, along with other ills.
But we were looking for something else -- that spark, that liveliness, that extra
something that makes a city, however big or small, an interesting place to be. Because
let's face it, there's still plenty of cheap real estate out there; the problem
is that it's in places few people would want to live.
Our chosen cities range in size from the pretty small (Prescott, Ariz.) to the almost-big
(Austin, Texas); no huge metropolis made the cut. All eight have a university presence,
and three of the eight are also state capitals. Government and university jobs can
help provide economic stability in good times and bad, while the college presence
almost always enlivens a town.
"A college or university can boost any town from good to great," said Sperling,
co-author of "
Best Places to Raise Your Family: The Top 100 Affordable Communities in the U.S."
"There's the vibrancy of the college scene, arts and lecture series, concerts (both
touring and student-produced), guest professors, literary events, classes to audit,
and not least, college sports, which some prefer to pro sports."
All our choices also have their drawbacks, just like anyplace else. What they have
going for them, though, makes them worth checking out.
Asheville, N.C.
How Asheville compares
|
|
Asheville
|
U.S. average |
|
Population |
70,400
|
|
|
Median home price |
$166,000
|
$217,900
|
|
Median household income |
$32,976
|
$44,684
|
|
Cost-of-living index |
90.7
|
100
|
|
Unemployment |
4.80%
|
5%
|
|
Future job growth |
8.15%
|
9.06%
|
Asheville has the interesting distinction, Sperling notes, of being named a "best
place" by both Rolling Stone and Modern Maturity magazines. That's because it's
popular with artists and musicians as well as with retirees who like the vibrant
art scene, beautiful Blue Ridge Mountain scenery and the abundance of recreational
activities. The 3,500-student University of North Carolina at Asheville offers cultural
and intellectual stimulation.
Watch out for: Crime, both property and violent, is relatively
high compared to the U.S. average. Also, the economy is not as robust as in many
of our other picks.
Austin, Texas
How Austin compares
|
|
Austin
|
U.S. average |
|
Population |
681,804
|
|
|
Median home price |
$167,900
|
$217,900
|
|
Median household income |
$45,508
|
$44,684
|
|
Cost-of-living index |
90.6
|
100
|
|
Unemployment |
4.30%
|
5%
|
|
Future job growth |
24.15%
|
9.06%
|
Several years ago, a local resident told me that Austin had the largest population
in the world of "Ph.D waiters," Ph.D waiters," which was his shorthand for highly-educated
folks who opted to work menial jobs rather than leave their beloved city for better
prospects elsewhere. A world-class music scene, great bars and the largest university
in the U.S. are among Austin's attractions -- plus there's all the fun of watching
the Texas legislature, given that this is also the state capital.
These days, of course, the Ph.Ds don't have to leave Austin for better prospects.
The city's shaken off much of the fallout from the dot.com blowout: Sperling describes
Austin as a "rising star" economically.
Watch out for: Allergy season can be long and brutal. And it's
really, really hot in summer.
Boise, Idaho
How Boise compares
|
|
Boise
|
U.S. average |
|
Population |
190,122
|
|
|
Median home price |
$236,600
|
$217,900
|
|
Median household income |
$44,098
|
$44,684
|
|
Cost-of-living index |
91.2
|
100
|
|
Unemployment |
3.30%
|
5%
|
|
Future job growth |
29.30%
|
9.06%
|
Boise used to be synonymous with "the middle of nowhere," but this former fur-trading
post has transformed itself with "an economy that is hitting on all cylinders,"
Sperling said.
Government, a university and a growing high-tech sector are creating good jobs even
as the cost of living remains low. The city has its own orchestra and ballet company
as well as numerous recreational opportunities.
"People are moving here from all over the West," Sperling said, "for the affordable,
friendly lifestyle."
Watch out for: Too much growth. Longtime residents complain of
the traffic and crowding that's resulted from Boise's growing popularity. And some
newcomers complain that, despite its growth, it's still a better place for outdoors
enthusiasts and people raising families than single folks who want to party all
night long.
Fayetteville, Ark.
How Fayetteville compares
|
|
Fayetteville
|
U.S. average |
|
Population |
64,190
|
|
|
Median home price |
$172,200
|
$217,900
|
|
Median household income |
$32,125
|
$44,684
|
|
Cost-of-living index |
88.2
|
100
|
|
Unemployment |
3.30%
|
5%
|
|
Future job growth |
30.42%
|
9.06%
|
Fayetteville's another city where rapid growth is taxing residents, but the area's
advantages are undeniable: a mild Ozark-foothills climate, a bustling economy and
all the attractions of the University of Arkansas and its Razorbacks.
Fayetteville is home to many corporate executives who commute to the nearby headquarters
of Wal-Mart and Tyson Foods and who help support upscale shops and restaurants.
But it's also close to some great fishing, hiking and other recreational outlets.
Watch out for: Oh, the humidity. This is the South, after all.
Minneapolis
How Minneapolis compares
|
|
Minneapolis |
U.S average |
|
Population |
373,943
|
|
|
Median home price |
$298,900
|
$217,900
|
|
Median household income |
$44,116
|
$44,684
|
|
Cost-of-living index |
124.5
|
100
|
|
Unemployment |
3.50%
|
5%
|
|
Future job growth |
6.45%
|
9.06%
|
Minneapolis comes out on top of many "Best Places to Live" competitions, thanks
to a wealth of urban amenities combined with a cost of living that's still relatively
affordable. Abundant lakes and a terrific parks system provide plenty of outdoor
fun, while the Walker Art Center, the Guthrie Theater and four professional sports
teams provide indoor entertainment.
And Minnesotans are just so darn nice, doncha know.
Watch out for: Those winters. The average temperature in January
is about 3 degrees.
Nashua, N.H.
How Nashua compares
|
|
Nashua |
U.S. average |
|
Population |
87,411
|
|
|
Median home price |
$278,400
|
$217,900
|
|
Median household income |
$57,634
|
$44,684
|
|
Cost-of-living index |
117.7
|
100
|
|
Unemployment |
3.60%
|
5%
|
|
Future job growth |
10.60%
|
9.06%
|
Nashua sits near the Massachusetts border and is less than 50 miles from Boston,
where the median home price is considerably higher (over $400,000 these days) and
the general cost of living more expensive. Nashua's also a short drive to the seacoast
and the White Mountains, making it a favorite for recreational enthusiasts.
And unlike Boston, Nashua residents pay no sales or income tax.
Watch out for: The property tax rate, which at $24.03 per $1,000
of valuation is more than twice the rate in Boston. And this is New England, so
you've got weather: 65 inches of snow on average in winter, and January temperatures
that hover around 11 degrees.
Olympia, Wash.
How Olympia compares
|
|
Olympia |
U.S. average |
|
Population |
43,982
|
|
|
Median home price |
$236,600
|
$217,900
|
|
Median household income |
$42,526
|
$44,684
|
|
Cost-of-living index |
107.8
|
100
|
|
Unemployment |
5%
|
5%
|
|
Future job growth |
26.60%
|
9.06%
|
Like Austin and Boise, Olympia benefits from the economic pillars of government
and higher education. In Olympia's case, the higher education comes from Evergreen
State College, a small, progressive liberal-arts institution with no grades, no
tests and no tenured faculty. Evergreen's funky vibe contrasts interestingly with
the more conservative tenor of the rest of the city.
Olympia's also ideally situated for those who like the outdoors. The city itself
is located on an inlet of Puget Sound and is a couple of hours, or less, from the
ocean and the mountains.
Watch out for: The rain. Olympia is wetter than notoriously soggy
Seattle, with more rainy days (163) and more rainfall (53.5 inches).
Prescott, Ariz.
How Prescott compares
|
|
Prescott
|
U.S. average |
|
Population |
38,930
|
|
|
Median home price |
$282,200
|
$217,900
|
|
Median household income |
$36,702
|
$44,684
|
|
Cost-of-living index |
115
|
100
|
|
Unemployment |
4.20%
|
5%
|
|
Future job growth |
32.11%
|
9.06%
|
A real old-fashioned town square and a nearby neighborhood of Victorians give Prescott
more of a sense of history than most Arizona towns. It's also in the mountains,
where temperatures average 10 degrees cooler than big-city Phoenix, which is about
100 miles away.
Another thing that's different: The median age. In Prescott, it's close to 50 (compared
to 30 in Phoenix) as a steady stream of retirees discovers the area's golf courses
and other amenities.
What to watch out for: California-bashing, since Californians are
blamed for much of the growth that's driving up property values.
How to find your own best place
If you're looking for your own best place, Sperling recommends the following:
Look for a healthy economy. "Having a good job is important, but
it's important that your neighbor has one too," Sperling said. "In a poor economy,
crime goes up, and there's a lack of tax revenue for school funding and social services
for the young, old, and poor,
not to mention basic city infrastructure."
Try to avoid a place in the middle of a huge boom. "After the party,
there's often a hangover," Sperling said. "Cities and businesses necessarily plan
far into the future, and the inevitable slowdown will catch them with expensive,
and now unneeded, projects left half-completed. It's also tough to control growth
and spending in the middle of a wild boom cycle."
Look for places on the outer fringes of metro areas. This may seem
obvious, but many people trade extra commute time to get a house they can afford.
"Similarly, if you're retired, you don't need to commute, so you can be free to
move to the outskirts of a metro area, and cash in that desirable inner-city home."
Seek out that college presence. Whether you're still working or
retired, a university can provide intellectual and cultural stimulation that helps
make a town more interesting.
Do some basic research. Sperling's Best Places
allows you to drill down on a town's economy, housing situation, climate and other
telling details.
MSN City Guides can help you check out local restaurants and other businesses
-- as well as weather and local news headlines.
Get the local newspaper. "When you narrow your list down to a few
favorites, subscribe to the local paper for a couple of months," Sperling said.
"Newspapers don't pull any punches when comes to reporting all the news, and you'll
soon find out what some of the major local issues are."
Visit. "There is no substitute for 'feet on the street,' he said.
"Try to spend at least a week there, so you have enough time to relax and get the
rhythm of the place."
