2011 MSN Real Estate Most Livable Bargain Markets

1. Rochester, N.Y.

Rochester provides a lot of bang for your buck. It has big-city culture, a highly educated population, picturesque scenery, affordable housing and an expanding high-tech job base. 

The city of Rochester anchors a 90-mile stretch of Lake Ontario shoreline, which serves as its northern border. Affluent suburbs Pittsford to the south and Webster along the shore are populated with workers from companies such as Kodak, Bausch & Lomb and Xerox.

Although it lost many jobs to the Sunbelt in the past few decades, it has now diversified its economy and is adding jobs in health care, food and beverage manufacturing and technology, including alternative energy, as well as in higher education.

"It's not any one thing growing the economy now; it's all of these things," says Mark Peterson, CEO of the Greater Rochester Enterprise, an economic-development organization.

Indeed, the Brooking Institution's MetroMonitor ranked Rochester among the 10 strongest performing metros in the recovery.

Small to midsize technology firms are locating here in part because of the universities, including the Rochester Institute of Technology and the University of Rochester, which provide a highly educated work force.

And there is increasingly more for graduates to do, with the city pouring $1 billion into revitalizing its downtown in the next three years.

There's also the Finger Lakes to the south of Rochester for recreation and wine tasting, and trails for hikers and bikers, including the towpath of the Erie Canal.

It has some of the cleanest air in the country, and a high concentration of physicians and specialists, thanks to the University of Rochester School of Medicine and Dentistry.

There's likely no road-rage epidemic here, as commutes are blissfully short, compared to other cities.

"I have a 12-minute commute to my downtown office," Peterson says. "You can work a full day here and still make it home for the soccer game and home for dinner."

Cons: High state income and property taxes, an aging population in some suburbs and cold winters.

• Population: 1.02 million
• Affordability index: 2.2
• Unemployment: 7.72%
• Job growth: -0.9%
• Median home price: $115,700
• Cost-of-living index: 90.8
• Median household income: $52,600
• Average commute time: 22.8 minutes
• Commutes longer than an hour: 3.27%

• Video: Which cities are the most hospitable?

2. Sioux City, Iowa-Neb.-S.D.

This safe, affordable, family-friendly metro is where the Midwest meets the West. Located where three states meet, Sioux City proper is in Iowa, and its suburbs are in Nebraska and South Dakota.

The economy is solid here as its health care, equipment and food-manufacturing sectors grow, even as its historic meatpacking base has declined recently with the shutdown of a large plant.

Unemployment is a relatively low 6.4%, and there's not much traffic to speak of. Crime is rare, and home prices are on the rebound, but still affordable.

Most people rave about Sioux City's polite and friendly residents and tolerate its weather. Overall, they say, it's a good place to raise a family.

If you're not an outdoorsy person, however, you might get a little bored in Sioux City. While golf, hiking and biking are abundant in its gently rolling hills, museums, live theater and galleries are scarce.

Winters are full of wind and snow, but summers are nice with lots of activities, such as boating on the Missouri River or Lake Okoboji resort area, which is only two hours away.

There also are several large casinos on the north side of town for high rollers, and sports fans can root for several minor-league teams.

Cons: Wind, tornadoes, flooding and harsh snowy winters, a lack of culture and colleges, fewer direct flights into its airport and a somewhat unhealthy population.

• Population: 143,131
• Affordability index: 2.2
• Unemployment: 6.39%
• Job growth: -1%
• Median home price: $103,600
• Cost-of-living index: 80.9
• Median household income: $46,600
• Average commute time: 18.8 minutes
• Commutes longer than an hour: 2.32%

• Bing Cube: Check out photos of Sioux City

3. Pittsburgh

Smaller. Smarter. Younger. Those are words you could use to describe Pittsburgh today. After 50 years of population loss, this former steel town is now growing again, as its economy has diversified into fields such as biotechnology, health care and software.

Several large research universities in the city are driving this growth — Carnegie Mellon University, Duquesne University and the University of Pittsburgh. High educational attainment along with a large number of bookstores, libraries and newspaper subscribers help rank Pittsburgh as one of the most literate cities in the U.S. in a study by Central Connecticut State University.

Endowments from Pittsburgh's industrial barons support its libraries, theaters and major museums, including one for that local pioneer of pop culture, Andy Warhol.

The city is also sports rich, with professional teams including the MLB's Pirates, NFL's Steelers and NHL's Penguins. And there's no shortage of hiking and biking trails, says real-estate agent Liz Caplan of Re/Max Realty Brokers.

"Every neighborhood has wonderful resources for hiking and biking or (is) close to resources for hiking and biking, even the urban neighborhoods," she says.

This architecture-rich city also is affordable. Housing in Pittsburgh didn't experience a bust like many other areas. Home values appreciated at about the same rate as income. Indeed, the city's peak for prices was posted in the third quarter of 2010.

Retirees love it because there's no state tax on money withdrawn from pensions.  And locals can get a 10-year break on its high property taxes if they move to new construction downtown.

"That's a huge attraction," Caplan says.

There's also a high concentration of physicians, specialists and hospital beds. But the city is still working on cleaning its air. Trapped automobile exhaust in the steep Allegheny valleys has contributed to some of the highest levels of air-particle pollution in the country.  

Cons: Pollution, older population, high property taxes, gray weather, snowy winters.

• Population: 2.3 million
• Affordability index: 2.8
• Unemployment: 7.46%
• Job growth: 0%
• Median home price: $124,200
• Cost-of-living index: 87.8
• Median household income: $47,600
• Average commute time: 27.8 minutes
• Commutes longer than an hour: 7.2%

• On our blog, 'Listed': Places where the bust is over: Start with Pittsburgh

4. Waterloo-Cedar Falls, Iowa

This is a great place to live if you like fresh vegetables, a lively arts scene, live theater and a little more ethnic diversity than other Midwest cities.

Waterloo, and smaller Cedar Falls along the Cedar River, recovered nicely after losing a significant part of the population during the agricultural recession of the 1980s.

John Deere is still the largest employer here, but the local economy has expanded to include more jobs in health care, other types of manufacturing and financial services. Unemployment is low, and the median home price was the lowest on our list at $114,700.

The adult population skews a little older, with many people past 65, but the University of Northern Iowa (UNI) in Cedar Falls adds a younger influence and a bit more cultural diversity and entertainment.

Cedar Falls and Waterloo both have an active visual-arts community. The Hearst Center for the Arts in Cedar Falls has two large galleries and classrooms, as well as a theater for films and studios for rent. UNI has its own exhibit space, and there's also the Waterloo Center for the Arts, a regional center for visual and performing arts that houses works by many artist,s including Iowa painter Grant Wood of "American Gothic" fame, as well as an interactive children's art museum. In summer there's the College Hill Arts Festival, where artists exhibit and sell their works in the parks of Cedar Falls.

"Cedar Falls has always had a reputation for its efforts, to maintain a high level quality of life for the citizens," says "Mr. Lucky," a former resident responding on a City-data.com forum. "Great schools, great parks and walking trails, the music festival every year, nice houses, the 'Parkade' (shopping area) downtown. What is there not to like?"

Locals don't have any professional sports teams to brag about, but many take in the UNI NCAA Division I Panthers.

Many people here say they walk or ride their bikes to work and that traffic is generally not a problem. The area has some of the cleanest air in the country, encouraging locals to get outdoors and walk the Cedar Valley Nature Trail that starts south of Waterloo and runs 52 miles to Cedar Rapids along abandoned railroad grade. In addition, the Cedar Trails Partnership helps maintain an extensive regional network of paths for bikers and hikers.

Sure, there's a threat that the Cedar River will flood every spring. But the flood-control system Waterloo that built decades ago worked as designed, sparing the city the worst during the great June 2008 flood. Cedar Falls, just downstream, was hit much harder.

Cons: Flooding, wind, older population, major airport is over an hour away, lower number of physicians and specialists.

• Population: 163,486
• Affordability index: 2.4
• Unemployment: 6.35%
• Job growth: 1.5%
• Median home price: $114,700
• Cost-of-living index: 82.7
• Median household income: $47,100
• Average commute time: 18 minutes
• Commutes longer than an hour: 2.58%

• Bing Cube: Check out photos of Waterloo

5. Lafayette, Ind.  

Look no further if you want an affordable, safe, sports-happy university town with a growing economy.

Located an hour's drive north of Indianapolis, and two hours south of Chicago, Lafayette is a town of "Makers," as its local university's slogan suggests.

Engineers make the economy run and Purdue University, with its enrollment of almost 40,000, churns them out in abundance in West Lafayette, which is divided from its sister city by the Wabash River.

Manufacturers such as Subaru, Caterpillar and Alcoa have operations in Lafayette. Purdue sponsors a large research park with more than 150 companies.

Jobs are growing rapidly and so is the downtown, which now boasts a redeveloped public square that houses farmers markets and events, as well as restaurants and shops.  

There are several historic districts in the area including Ninth Street Hill, where mansions built by Wabash River shipping magnates are lovingly maintained. The cultural center of the area is the Edward C. Elliott Hall of Music that seats 6,000. And Lafayette has its own community symphony, opera and chorale.

Locals root for the Purdue Boilermakers, founding members of the NCAA Big Ten conference, who have a fierce rivalry with the downstate Indiana University Hoosiers.  There are plenty of parks, and the Wabash and Tippecanoe rivers offer trails and opportunities for kayaking, canoeing and fishing in the clean Lafayette air — among the lowest in atmospheric ozone in the country.

Violent crime is rare, property crime is below the national average and Lafayette recently ranked as the 16^th "greenest" city in the nation, according to a survey by Newsweek/Daily Beast Co., mostly for its recycling program and wide use of public transportation.

Cons: Not the best place for singles, closest airport is an hour away in Indianapolis, cold snowy winters, might be boring for transplanted urbanites.

• Population: 195,702
• Affordability index: 2.7
• Unemployment: 7.12%
• Job growth: 1.4%
• Median home price: $120,600
• Cost-of-living index: 87.8
• Median household income: $44,300
• Average commute time: 20.4 minutes
• Commutes longer than an hour: 3.82%

Slide show:  2010 Most livable bargain markets

Slide show:  2009 Most livable bargain markets

6. Ann Arbor, Mich.

It's hard to believe that Ann Arbor is just about 30 miles outside of Detroit. Its quality of life and economy seem worlds away.

Ann Arbor's auto-industry jobs may have dwindled, but the city has managed to keep a nice base of well-paying research and development jobs in the car business.

The city, home to the University of Michigan, also has boosted its life-sciences employment to more than 100 companies and has grown its information technology sector to more than 300 firms, according to Donna Shirilla, director of research and business information for Ann Arbor's Spark economic-development team.

"This is one of the few places in Michigan that hasn't cratered," Sperling says.

Employers like Ann Arbor's educated population: About 70% of residents here hold a bachelor's degree or higher. And that shows in the area's median income. It tops our list at $60,700.

AARP voted it one of the healthiest cities in the U.S. because so many of its residents exercise regularly and because its health care resources are exceptional. It has one of the highest numbers of doctors per residents, thanks to the University of Michigan Medical Center.

It's a young, bike-friendly community and one of the top metros in the U.S. for walking or biking to work.

The university provides much of Ann Arbor's entertainment, with several performing-arts groups and theaters on campus, as well as museums of art and natural history. There also are symphony, opera, ballet and theater companies not associated with the university. Locals here can browse art galleries and independent bookstores or take in a game at the world's largest college football stadium that can fit more than 110,000 screaming Wolverine fans.

Cons: Brutally cold winters, higher taxes, may be too liberal for some.

• Population: 354,206
• Affordability index: 2.6
• Unemployment: 7.1%
• Job growth: 0.4%
• Median home price: $157,600
• Cost-of-living index: 98.1
• Median household income: $60,700
• Average commute time: 25.2 minutes
• Commutes longer than an hour: 4.93%

• Moving? Find a home for sale that fits you

7. Logan, Utah-Idaho

An outdoor mecca, Logan lies at the south end of the Cache Valley against the Wasatch Range and the dramatic Wellsville Mountains to the west. Weekends here are all about outdoor recreation, including hiking, skiing and fly-fishing. The town also is home to Utah State University, which brings residents big-city cultural events and basketball games with the USU Aggies.

It's also a major research center in aerospace, computer science and environmental studies, which helps drive creation here. Logan's employers include biomedical and high-tech companies, food-processing plants and large call centers. The work force here is young and well-educated. Unemployment is a low 5.69% here and crime is almost unheard of.

Logan's sleepy downtown area has pedestrian-friendly streets and family-owned businesses. However, you won't find many wine bars or coffee shops. The majority of the population practices the Mormon or LDS religion, which forbids alcohol, coffee, tea and cola.

The climate is generally dry and pleasant and brings only a few blasts of brutally cold weather each year. However, temperature inversions in winter trap automobile exhaust, bringing a brown layer of smog until fresh winds blow it away.  

Still, low commute times, clean living and high rates of good mental health could help Logan rank as one of the least-stressed cities in the U.S. And you can't argue with its breathtaking views.

There are, however, two potentially major drawbacks to living in this mountain community: its isolation and lack of diversity.

The area's beautiful geography makes for some tough traveling to other big cities. Salt Lake City is 75 miles away across a mountain pass, which can be difficult to drive in winter. And its population and politics are predominantly white, conservative and Mormon.

It's not for everyone. But if you love the great outdoors and are looking for a nice safe place to raise your family, Logan might be the place.

Cons: Isolation, lack of diversity, little nightlife or culture, winter smog.

• Population: 123,753
• Affordability index: 3.2
• Unemployment: 5.69%
• Job growth: -0.1%
• Median home price: $155,500
• Cost-of-living index: 98.5
• Median household income: $48,200
• Average commute time: 18.7 minutes
• Commutes longer than an hour: 4.02%

• Bing Cube: View photos of the Cache Valley

8. Lincoln, Neb.

If you're looking for an affordable place with good college football and decent job prospects that's also a good place to raise your family, consider Lincoln.

This capital town of nearly 300,000 people about 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.

The unemployment rate in Lincoln was a shockingly low 4.11% in March, thanks to its thriving mix of financial services, insurance and manufacturing employers.

The cost of living in Lincoln ranks among the bottom one-tenth of metros in the country, mainly because of its inexpensive housing costs. The median home will set you back just $142,700. Couple that with slightly higher salaries than in other Midwest cities, and you've got a population with more money in their pockets.

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

"It has a surprisingly hip culture going on," Sperling said of the city last year when it made our list. "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.

True, there's no professional football in Lincoln, but residents of this town are crazy about their Cornhuskers.

And there's plenty to do for hikers and bikers in this town of gently rolling hills, including the MoPac East Trail, which runs about 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 higher than the national average here.

Cons: Tornadoes and floods, higher crime rate.

• Population: 297,215
• Affordability index: 2.8
• Unemployment: 4.11%
• Job growth: 0.5%
• Median home price: $142,700
• Cost-of-living index: 87
• Median household income: $51,800
• Average commute time: 20.1 minutes
• Commutes longer than an hour: 2.87%

• Video: Which cities are the most hospitable?

9. Fort Worth-Arlington, Texas

Fort Worth, which prides itself as the cultural gateway to the West, is often overshadowed by nearby Dallas. But Fort Worth is a boomtown in its own right, with a growing job base and a rich character, Sperling says.

"It has more of a coherent architecture, more of a downtown and an extensive park system," he says.

Fort Worth began at the eastern end of the Old Chisholm Trail, and for years, it was dominated by the stockyards. The Fort Worth metro area — which also includes the city of Arlington and family-friendly Euless — is now home to a number of large corporations, including American Airlines, Radio Shack and a long list of aerospace and electronics firms that have slowed but are still going. Incomes are high relative to its affordable home prices.

Its population is ethnically diverse and young. After work, many head over to Sundance Square, a 35-block entertainment district with beautifully preserved 19^th-century architecture so named for the Sundance Kid, who passed through town with his pal Butch Cassidy.

Locals here can go out to a honky-tonk at night or attend a grand opera at Bass Performance Hall. On the weekends, there are a number of beautiful museums to visit such as the Modern Art Museum of Fort Worth designed by Tadao Ando or the Philip Johnson-designed Amon Carter Museum.

Arlington is home to the MLB's Texas Rangers and NFL's Dallas Cowboys. And it has an extensive system of parks, including bike paths along the Trinity River and a 20-mile trail to Lake Mineral Wells.

Fort Worth itself has a low number of physicians, specialists and hospital beds. However those in Dallas aren't far away. The big challenges here are the congestion and air pollution. It is one of the worst places in the country for allergy and asthma sufferers.

The city also rates high on Sperling's stress index that examines such factors as rates of suicide, divorce and alcohol abuse. Still, most locals here say they are satisfied with life.

Cons: Air pollution, traffic congestion, high rates of violent and property crime, lacks good public transportation.

• Population: 2.1 million
• Affordability index: 2.3
• Unemployment: 8.01%
• Job growth: 1.4%
• Median home price: $132,600
• Cost-of-living index: 86.1
• Median household income: $56,600
• Average commute time: 29.1 minutes
• Commutes longer than an hour: 7.49%

• Bing: Just how big is the JumboTron inside Cowboys Stadium?

10. Fayetteville-Springdale-Rogers, Ark.-Mo.

Fayetteville and the surrounding cities of Springdale and Rogers are corporate America's beautiful backyard. Nestled between the White River and the Ozark Mountains, this metro area has grown rapidly along with its local companies such as Wal-Mart Stores, Tyson Foods and J.B. Hunt Transport Services.

Home to the University of Arkansas and its Razorbacks football team, family-friendly Fayetteville has a quaint downtown with a great weekend farmers market, outdoor summer concerts, good college sports and entertainment and a progressive feel for such a small town.

Springdale, meanwhile, is more of a commercial center, with light manufacturing, trucking and agricultural operations, including poultry giant Tyson.

Rogers is a sleepy little town that has boomed as a major residential area just minutes from Wal-Mart Stores' Bentonville headquarters. While Wal-Mart has an overwhelming influence here, the area is attracting other companies as well.

There's a small but growing base of culture, with a large performing-arts center endowed by the Waltons (Wal-Mart's founding family) and a Walton-supported art museum scheduled to open at the end of this year after a long delay.

Career opportunities, affordable housing and the beauty of the surrounding mountains and lakes have helped land it on many "best places" lists in the past decade.

"The climate is nice, it's affordable and it's a great places for retirees," Sperling says.

"John," commenting on Sperling's Best Places site about Fayetteville, says he was pleasantly surprised when he moved there from North Carolina, finding "very nice people," a "seriously 'green'" attitude and "pretty rolling hills."

Cons: Lack of public transportation, high obesity rates, fewer cultural amenities than other cities.

• Population: 454,580
• Affordability index: 2.5
• Unemployment: 6.2%
• Job growth: 2.9%
• Median home price: $117,200
• Cost-of-living index: 84
• Median household income: $46,500
• Average commute time: 23.9 minutes
• Commutes longer than an hour: 3.83%

Slide show:  2010 Most livable bargain markets

Slide show:  2009 Most livable bargain markets