2010 MSN Real Estate Most Livable Bargain Markets

Ames, Iowa

Located in the heart of Iowa, Ames combines small-town living with bigger city recreation, sporting and cultural activities afforded by its largest employer, Iowa State University.

The city's economy, centered on biotechnology and agriculture, is relatively stable, with an unemployment rate of 5.8% and an average household income of $48,339. Buying a house here won't be a problem; the median home price is just $113,950, the lowest on our list.

Families will find plenty to do in this town, with 36 parks, 22 miles of bike trails, a new aquatic center and a downtown district for music, shopping and other entertainment.

"It has amenities that you would normally not find in a town of this size," says Ben Chamberlain, an agent with Century 21 Signature Real Estate in Ames. Chamberlain is a native of Illinois who relocated here in the early part of this decade.

And it was the only market on our list to experience any true appreciation in home prices.

However, it can be a little challenging for singles, Chamberlain says. Young professionals often drive a half-hour to Des Moines to find more dining and nightlife options.

Cons: Winters are long, and there's no shortage of floods and tornadoes.  Nightlife can be sparse, and there's little ethnic diversity.

• Population: 86,001
• Affordability index: 2.36
• Unemployment: 5.8%
• Job growth: -1.2%
• Median home price: $113,950
• House price appreciation: 1.4%
• Cost-of-living index: 83.8
• Average household income: $48,339
• Average commute time: 18.6 minutes
• Percent of commutes over an hour: 2.14%
  
  
• On our blog: Is a housing shortage on its way?
  
  
• MSN Local Edition: This summer’s hottest cities

Sioux Falls, S.D.

Here's another flat and friendly Midwest town where unemployment is low and so are taxes and the overall cost of living, allowing you to squeeze more out of your paycheck.

Winters here may be cold, but the local economy is hotter than elsewhere, thanks to the global debt crisis. Sioux Falls is a national hub for credit-card processing. Employment also is available at computer factories, meatpacking plants, hospitals and startup companies.

In 2008, 2009 and 2010, the metro was named the top small city in the U.S. for business and careers, out of 179 listed, by Forbes magazine based on the cost of doing business, job growth and educational attainment. 

It's windy and not particularly green. But its air is among the cleanest in the nation. Residents here are generally healthy, and the number calling themselves religious ranks in the top 10% nationally.

Still, there are plenty of things to do here besides go to church, with bike trails, pools, snowboard parks, university entertainment and an emerging arts scene.

"Derek," a city resident posting on Sperling's Best Places website, said that among the reasons he chose to relocate to the city were its excellent school system and health care.

"If you prefer a slower pace with the setting to raise a family, start a business or relocate yourself, Sioux Falls is an A+."

Cons: Long winters, hot humid summers, lack of diversity and cultural activities.

• Population: 235,619
• Affordability index: 2.63
• Unemployment: 4.3%
• Job growth: -2.4%
• Median home price: $135,830
• Home price appreciation: 0.5%
• Cost-of-living index: 87
• Average household income: $51,568.
• Average commute time: 19.5 minutes
• Percent of commute times over an hour: 2.9%
  
  
  
• Video: Houses cheaper than used cars
  
  
• What's the lowest mortgage rate you can get?

Lincoln, Neb.

If you're looking for a place with decent football, decent-paying jobs and decent hard-working people, Lincoln is decent on all counts. 

This capital town of nearly 300,000 people, 50 miles southwest of Omaha, has a strong economy; several colleges, including the University of Nebraska; and a higher than average number of residents with college degrees.

Its unemployment rate is among the lowest in the country, and job growth continues despite the recession in its financial services, insurance and manufacturing sectors. Indeed, Pfizer, which makes animal vaccines in Lincoln, is expanding its manufacturing work force by 15%, taking back work that was previously outsourced.

The cost of living ranks among the bottom one-tenth of metros in the country, mainly because of its inexpensive housing costs. The median home price was $134,640 in the first quarter.

True, there's no professional football here, but residents of this town are rabid about their Cornhuskers, who have won the national championship five times since 1972.

The colleges and strong job market make Lincoln a magnet for young professionals from around the Midwest, and they can find plenty of theaters, concerts and lectures. Live music can be found in the bars and restaurants that dot downtown's O Street.

"It has a surprisingly hip culture going on," Sperling says. "People from surrounding areas of the Midwest don't have to go to New York to find a good job" in the financial industry and some pleasant ways to pass their weekends.

And while there may not be much in the way of exciting geography here, there are lots of trails for bike riders, including the MoPac East Trail, which runs 25 miles east of the city to the small town of Wabash.

Just don't leave your front door unlocked in this midsize city; rates of property and violent crime are above the national average here.

Cons:  High risk of tornadoes and floods, higher crime rate.

• Population: 296,961
• Affordability index: 2.72
• Unemployment: 4.7%
• Job growth: -3.4%
• Median home price: $134,640
• Home price appreciation: -0.7%
• Cost-of-living index: 87.9
• Average household income: $49,471
• Average commute time: 19.9 minutes
• Percent of commute times over an hour: 3.11%
  
  
  
• On our blog: Is a housing shortage on its way?
  
  
• MSN Local Edition: This summer’s hottest cities

Lawrence, Kan.

When you think of small Kansas towns, you probably think of cornfields and conservatives. That's not the case in Lawrence, 25 miles east of Topeka and 40 miles west of Kansas City.

This city of 115,728 people is a liberal oasis in an overwhelmingly conservative state. City government here battles against sprawl and discourages the development of strip malls and drive-through restaurants. And it has been honored as a bike-friendly community.

The main employer here is not agriculture but education, namely the University of Kansas with its 26,000 students. And there are a growing number of bioscience startups here, inspired by research at the school of pharmacy, which holds the second-largest number of National Institutes of Health grants, says Beth Johnson, vice president of economic development for the Lawrence Chamber of Commerce. A business incubator was recently built on the campus to cater to these startups. Call centers and manufacturing concerns also add to the employment mix.

Even the terrain in Lawrence is different, a rolling valley with hills, trees and lakes.

The university provides entertainment at its Lied Center and Murphy Theater. And its Lawrence Arts Center, a community organization, offers classes in the visual arts, drama and dance for all ages, with a special emphasis on children, including arts-based preschool.

"We are very well-known for being an artistic community," says Johnson, who credits that with drawing workers and small businesses to the area.

Clinton and Perry lakes, fine spots for boating, duck hunting and fishing, are just a few miles west of town, and the city's 18-hole golf course is one of the best in the state.

However, the weather is challenging, says Nicole Bowers, a former resident, who moved to follow her husband in the military.

"Lawrence is an awesome place to live because of the people and the vibe, but it has the worst weather ever."

Cons: Long, cold winters; hot, humid summers; not very racially diverse; some traffic around the university.

• Population: 115,728
• Affordability index: 3.35
• Unemployment: 5.8%
• Job growth: -3.7%
• Median home price: $148,400
• Home price appreciation: -4.4%
• Cost-of-living index: 89.5
• Average household income: $44,284
• Average commute time: 21.8 minutes
• Percent of commute times over an hour: 3.17%
  
  
  
• Video: Houses cheaper than used cars
  
  
• What's the lowest mortgage rate you can get?

Burlington-South Burlington, Vt.

Regularly ranked as one of the healthiest places to live in the nation, with its bike-friendly streets, access to great skiing and sailing and quality medical care, Burlington also ranks high on the affordability scale.

The median house here will set you back just $198,590, and the average income is one of the highest on our list — $57,699 — thanks to its well-educated work force, many of them University of Vermont alumni who refuse to leave town.

And its employment picture looks rosy, thanks to the university and a wide base of small companies that are continuing to grow, such as Burton Snowboards and Seventh Generation, maker of eco-friendly cleaning products.

"Our focus over the last 27 years has been focusing on our small businesses and helping them grow," says Bruce Seifer, assistant director of Burlington's Community and Economic Development Office.

The creative culture and innovative businesses in this town of 208,557 attract young workers looking for a great lifestyle, with plenty of arts and entertainment. And it's a safe place for people settling down, too, Seifer says. "We have invested a lot of money in our schools."

But one of Burlington's biggest selling points is its stunning scenery, including the nearby Green Mountains and Lake Champlain.

The politics here are decidedly liberal, with almost 30 years of progressive mayors in office, and that means higher taxes and strict zoning laws. But the city has made big investments in its infrastructure and helped redevelop areas such as Church Street Marketplace, with its shops and restaurants, and Waterfront Park.

Cons: Higher taxes; long, brutal winters; limited number of direct flights to its airport.

• Population: 208,557
• Affordability index: 3.44
• Unemployment: 5.2%
• Job growth: -2.5%
• Median home price: $198,590
• Home price appreciation: -2.5%
• Cost-of-living index: 109.9
• Average household income: $57,699
• Average commute time: 23.6 minutes
• Percent of commute times over an hour: 4.02%
  
  
• On our blog: Is a housing shortage on its way?
  
  
• MSN Local Edition: This summer’s hottest cities

Billings, Mont.

If you're looking for a smaller city with beautiful scenery, a thriving economy and a generous helping of culture, this might be the place for you.

Ditto if you want land -- lots of land all around you. Billings is the biggest city for hundreds of miles in all directions, and therefore a hub for all kinds of products and services for these smaller rural areas.

"We are the place that people come for their goods and services, medical care and education," says John Brewer, CEO of the Billings Chamber of Commerce/Convention and Visitors Bureau.

It's also a regional center for the oil and gas industries, with three refineries that serve as major employers, and it's starting to attract a growing number of technology-related companies. With this much demand for its goods and services, unemployment is relatively low at 5.7%.

But the big draw for Billings is its quality of life, locals say, from its spectacular outdoor recreation around the Yellowstone River and the Rimrocks that surround it to the surprising amount of culture in its thriving downtown.

Due in part to its location in a valley, the climate here is also a bit more moderate than the rest of the state. Still, this area that residents like to call "the banana belt" of Montana for its slightly warmer weather does have long winters, and temperatures in some summer weeks can peak at more than 100 degrees. 

Cons: Isolated from other major cities; extremes in temperature; few direct flights into its airport.

• Population: 152,193
• Affordability index: 3.48
• Unemployment: 5.7%
• Job growth: -4.6%
• Median home price: $167,800
• Home price appreciation: -0.4%
• Cost-of-living index: 97.9
• Average household income: $48,176
• Average commute time: 19.9 minutes
• Percent of commute times over an hour: 3.78%
  
  
• Video: Houses cheaper than used cars
  
  
• What's the lowest mortgage rate you can get?

Durham, N.C.

Tobacco may have launched this city in North Carolina's Piedmont region, but Durham's economy is now solidly based in science.

The hub is Research Triangle Park, the largest research park in the U.S., which is home to more than 170 companies, many of them life-sciences or information-technology firms.

Durham claims the title City of Medicine, with more than 300 medical and health-related companies and medical practices with a combined payroll that exceeds $1.5 billion annually, according to city data.

These companies are drawn by one of the largest concentrations of college graduates and post-graduate degree holders in the country, many of them from the University of North Carolina in Chapel Hill and Duke University, which are also large employers and provide much of the city's entertainment.

Unlike the nearby city of Raleigh to the west, Durham is much smaller and more organized around universities and hospitals. And its median home price is affordable to many at $177,410.

"It is a tremendous bang for the buck that is offered in Durham" says real-estate agent Larry Toller, who moved to Durham from New England seven years ago. "You can get a very nice home for $250,000.

Cons: Hot, humid summers; above-average crime rate.

• Population: 491,178
• Affordability index: 3.61
• Unemployment: 7.5%
• Job growth: -5.3%
• Median home price: $177,410
• Home price appreciation: -0.6%
• Cost-of-living index: 98.9
• Average household income: $49, 095
• Average commute time: 24.7 minutes
• Percent of commute times over an hour: 4.07%
  
  
• On our blog: Is a housing shortage on its way?
  
  
• MSN Local Edition: This summer’s hottest cities

Tucson, Ariz.

If you like the desert, but Phoenix and Las Vegas are too big and hot, Tucson might be the place for you.

Although it's just an hour's drive from the Mexican border, its higher elevation makes for slightly cooler temperatures — only one month with an average temperature over 100 degrees — and much less air pollution than its big neighbor to the north.

And although the city topped 1 million residents in 2008, it has the feeling of a smaller, slower-paced town, locals say, and many of its residents walk or bike to work.

Alternative energy is one of the drivers of the expanding local economy; the city receives funding from the Energy Department to integrate more solar panels in its homes and businesses. Other major employers are in aerospace and defense, bioscience, logistics and, of course, the University of Arizona, which is based here.

When the weekend rolls around, there are plenty of opportunities for recreation, with a large number of parks, cycling routes and golf courses around town. And in winter, there's always skiing at Mount Lemmon, a 9,000-foot peak just north of town. The town has several theater companies, an annual symphony season and a major folk festival in May.

Sports buffs might bemoan the dearth of professional sports teams in Tucson, but its University of Arizona Wildcats are perennial Pac 10 conference contenders in football, basketball and baseball.

And many will appreciate its blend of cultures, with three out of 10 residents having Mexican ancestry. Of course its proximity to Mexico also has its downside, namely that a large share of its law enforcement's resources go to combat illegal immigration, rather than to deal with other types of crime.

Cons: Hot summers, higher property crime, smaller airport with fewer direct flights, less high-end shopping than in nearby Phoenix.

"We don't have a Nordstrom yet," says Eric Schrader, a real-estate broker and owner of Century 21 1^st American. "That has been an issue for some people."

• Population: 1 million
• Affordability index: 3.71
• Unemployment: 9%
• Job growth: -2.1%
• Median home price: $167,710
• Home price appreciation: -9.1%
• Cost-of-living index: 94.6
• Average household income: $45,194
• Average commute time: 26.3 minutes
• Percent of commute times over an hour: 4.7%
  
  
• Video: Houses cheaper than used cars
  
  
• What's the lowest mortgage rate you can get?

Rochester, Minn.

You won't have to worry about access to quality health care in this city, 80 miles south of Minneapolis.

Known as Med City, Rochester is home to the famed Mayo Clinic, the second-best hospital in the country, according to US News and World Report. Mayo Clinic is this city's largest employer.

Here, residents have the eighth-longest life expectancy in the country, perhaps due to Mayo's aggressive approach to education and preventive care or to the huge volume of physicians residing here — it has the highest number of doctors per capita of any metro in the U.S.

Unemployment is relatively low, at 5.6%, because many of the large employers — IBM, as well as agriculture and food-processing operations — have managed to retain their workers.

Rochester’s combination of good jobs, good schools and low taxes put it on Money magazine's 2008 list of 100 best small cities.

It's a great place to raise kids, residents say. But while Rochester does have art galleries, museums and community theater groups, it's no Minneapolis, and younger professionals and singles may get bored.

"There is virtually no nightlife," says “Nicholas,” posting on Sperling's site.

What is impressive is its recreation, with several municipal golf courses that double as cross-country ski areas in the winter, and 60 miles of paved bike trails.

Cons: Lack of racial diversity; long, harsh winters; not rich in culture.

• Population: 183,938
• Affordability index: 2.4
• Unemployment: 5.6%
• Job growth: -0.1%
• Median home price: $143,550
• Home price appreciation: -4.8%
• Cost-of-living index: 95.7
• Average household income: $49,471
• Average commute time: 19.3 minutes
• Percent of commute times over an hour: 3.18%
  
  
  
• On our blog: Is a housing shortage on its way?
  
  
• MSN Local Edition: This summer’s hottest cities

Portland-South Portland-Biddeford, Maine

Looking for a quaint coastal town that you can actually afford? Then Portland should top your list.

This New England city of half a million, about 100 miles northeast of Boston, seems to have it all: low unemployment, a thriving cultural scene, great restaurants, beautiful sea views and low crime.

Portland is a regional financial and medical center and is home to a large port, so there are good jobs to be had, and commuting to these jobs isn't stressful.

"We don't have traffic jams," says real-estate agent Jean-Marie Caterina, with Keller Williams Realty in Portland.  "When we say 'traffic,' it means it may take an extra 10 minutes to get home."

And when people go out, they have some nice dining choices. Bon Appétit magazine and the Food Network have singled it out as a destination for foodies, with its award-winning chefs and access to the freshest seafood.

For entertainment, there's the Downtown Arts District, home to the large Portland Museum of Art, Portland Stage Company and the Portland Symphony Orchestra. Or you could just sit on a bench off Commercial Street off the waterfront and watch birds wheeling over islands in Casco Bay.

Cons:  Not a lot of public transportation; direct flights to local airport are limited; lack of nightlife and smaller proportion of young residents may make this a hard town for singles. 

• Population: 516,049
• Affordability index: 3.65
• Unemployment: 6.4%
• Job growth: -3.4%
• Median home price: $200,770
• Home price appreciation: -3.6%
• Cost-of-living index: 106.4
• Average household income: $55,047
• Average commute time: 25.5 minutes
• Percent of commute times over an hour: 5.69%
  
• Video: Houses cheaper than used cars

Read:  2008 MSN Real Estate Best Bargain Markets

Slide show:  2009 MSN Real Estate Most-Livable Bargain Markets