By Venessa Wong, BusinessWeek

Mar 3rd, 2010

Life with children is expensive, but in some places a dollar goes a lot further. Bloomberg BusinessWeek evaluated information provided by community data company OnBoard Informatics to determine the best affordable suburb in each state.

While many of the places on this year’s list are near amenities such as country clubs and golf courses, the focus is not luxury, but rather communities where families can live well for less and enjoy good schools, low crime, and reasonable commutes. The selected suburbs were limited to towns within 25 miles of the most populated city in the state, with populations of 5,000 to 60,000, median family incomes of $51,000 to $120,000, and lower-than-average crime rates. We weighted a variety of factors including livability (short commutes, low pollution, green space), education (well-educated residents, high test scores), crime (low personal and property crime), economy (high job growth, low unemployment rate, high family income), and affordability (median household income, cost of expenditures). Affordability was most heavily weighted in our calculations. We penalized places with bad weather, a lack of racial diversity, high divorce rates, and few children.

The results range from established high-income neighborhoods to growing middle-income communities. For example, the smallest town on the list, Cave Creek, Ariz., has a population of about 5,000 and a median family income of $108,546, while Moore, Okla., one of the largest, has more than 51,000 residents and a median income of $63,309, according to OnBoard’s estimates. Despite their differences, all these places offer young families an attractive location to raise children and remain close to employment opportunities

Top 10 Best Affordable Suburbs in America

1. Fishers, Ind.
Nearest major city: Indianapolis
Population: 58,856
Median family income: $108,086
Median home price: $174,438
Unemployment rate: 6.5%
Violent crime index: 12

With reasonable property prices, an unemployment rate lower than average, and a good grade for safety, Fishers is the best affordable suburb overall in this year’s survey. The school district here has grown in recent years to accommodate the expanding population, and now includes 12 elementary schools, several intermediate and junior high schools, and two high schools. The town, on the West Fork of the White River, has 12 developed parks, five undeveloped sites totaling 152 acres, and more than 65 miles of multipurpose trail.

2. Papillion, Neb.
Nearest major city: Omaha
Population: 16,428
Median family income: $92,077
Median home price: $145,000
Unemployment rate: 4.5%
Violent crime index: 13

Papillion was one of the best affordable suburbs overall on this year’s list. Golf courses, nature trails, parks, and recreational opportunities near Papio Creek and Walnut Creek can be found. Many residents of this bedroom community commute to Omaha, about 20 minutes away. Students in the Papillion area score above the national and Nebraska average on the American College Test, according to the city’s Web site.

3. Mililani Town, Hawaii
Nearest major city: Honolulu
Population: 26,790
Median family income: $98,384
Median home price: $370,000
Unemployment rate: 5.3%
Violent crime index: 3

This planned community has a golf course, tech park, community centers, and shopping malls. There are several schools in this upper-middle-class area, which serves as a bedroom community for Honolulu. The area also has upscale communities, such as Mililani Mauka, and a very low crime rate. It was considered by Money magazine to be one of the best places to live in 2005.

4. Huntersville, N.C.
Nearest major city: Charlotte
Population: 43,917
Median family income: $103,394
Median home price: $205,500
Unemployment rate: 11.2%
Violent crime index: 25

A fast-growing suburb 10 miles from Charlotte, Huntersville is located along Lake Norman, a manmade lake with 520 miles of shoreline. There is an entertainment and shopping center, nature preserve, and amusement park, and the mountains and beach are a short drive away. Education here is also exceptional: Huntersville Elementary School earned a Blue Ribbon Award in 2008.

5. Montgomeryville, Pa.
Nearest major city: Philadelphia
Population: 11,848
Median family income: $108,071
Median home price: $258,750
Unemployment rate: 6.8%
Violent crime index: 11

Shopping is plentiful in Montgomeryville. There are several malls in the vicinity, including the Water Tower Square Shopping Center and the Montgomeryville Five Points Plaza Shopping Center, located near Five Points, the spot where five roads intersect. The upper-middle-class neighborhood also has outdoor amenities like its own golf course and is constructing a new trail system. The area’s schools are part of the North Penn School District.

6. Hales Corners, Wis.
Nearest major city: Milwaukee
Population: 8,235
Median family income: $83,179
Median home price: $198,000
Unemployment rate: 9.3%
Violent crime index: 12

This village, only 3.2 miles square, provides residents with access to shopping centers, two pools in the Hales Corners County Park, Whitnall Park Golf Course, Boerner Botanical Gardens, and Wehr Nature Center. It is a short drive to General Mitchell International Airport and the shore of Lake Michigan. It is part of the Whitnall School District, which has four public schools and a charter school.

7. Roxborough Park, Colo.
Nearest major city: Denver
Population: 8,211
Median family income: $94,084
Median home price: $230,000
Unemployment rate: 5.9%
Violent crime index: 16

The red rock formations near Roxborough Park, a community that developed in the 1970s, are considered some of the most spectacular mountain scenery in Colorado. The 3,339-acre state park offers residents hiking and biking trails, cross-country skiing, and educational programs for Colorado geology and wildlife. The Douglas County School District is one of the best in the state.

8. Brandon, S.D.
Nearest major city: Sioux Falls
Population: 9,056
Median family income: $79,040
Median home price: $138,400
Unemployment rate: 4.8%
Violent crime index: 21

Nature parks, wineries, a speedway, and golf courses are some of the amenities enjoyed by the residents of Brandon, a fast-growing suburb of Sioux Falls. The Brandon Valley School District has a few elementary schools, a middle school, and a high school. About 40% of residents are married with children and the average commute is 19 minutes.

9. Savage, Minn.
Nearest major city: Minneapolis
Population: 27,976
Median family income: $102,025
Median home price: $213,750
Unemployment rate: 7.3%
Violent crime index: 28

The residents of this green suburb enjoy 304 acres of city-managed park space and more than 2,400 acres of state and county-managed parkland. South of Minneapolis near the Minnesota River, Savage is in one of the state’s fastest-growing areas, Scott County. About 57% of residents here are married with children, according to OnBoard. Savage is part of three school districts: Prior Lake-Savage, Burnsville-Eagan-Savage, and Shakopee.

10. Clark, N.J.
Nearest major city: Newark
Population: 13,862
Median family income: $97,668
Median home price: $380,500
Unemployment rate: 9.7%
Violent crime index: 4

Formerly a farm community, Clark has grown into a popular suburb at nearly full capacity of occupied land, according to the town Web site. Its school district has a preschool, two elementary schools, a middle school, and a high school. Clark is near several medical centers in neighboring communities. Amenities include a golf complex, community pool, tennis courts, and parks. A new ranking by Monmouth University’s Polling Institute named Clark one of the state’s best places to live, according to a report on njtoday.net.

Homeowners should buck the conventional wisdom about selling in the spring.

Putting a home on the market in this grim real-estate climate might seem like lunacy considering how heavily the market favors buyers. Home prices are down 28% from their national peak in the second quarter of 2006, according to the S&P/Case-Shiller home price index, which tracks sales in 20 major housing markets. Still, listing a home during certain months can improve a seller’s odds.

See More: The Best Time Of Year To Sell A Home

Late spring and summer are usually thought of as the best times to put a home on the market because buyer demand builds steadily through spring. Sales then peak during the warmest months, when it’s easiest for families to move without uprooting their children from school. But this year, experts predict that the selling boom, which normally starts in spring, will hit at a different time than it has in the past. Sellers with flexibility should market their homes earlier in the year.

According to data from Zillow.com, an online real-estate database, the volume of home sales was highest in June, July or August every year since 2000. This year, however, an $8,000 credit for those buying their first home–that expires on June 30, 2010 and requires buyers to have closed on a home by April 30, 2010–will force buyers to speed up their decisions. Historically low interest rates also suggest that sellers will face a busier market as early as February.

“This year, we’re anticipating sales will peak earlier,” says Nicole Hall, editor in chief of Lendingtree.com, an online mortgage comparison service. “The best time to get your house on the market will be February or early March, and maybe even earlier if you want to avoid competition.”

The Economy Upsets Seasonal Trends

House hunting may have traditionally sped up after March, but nothing about the last few years in real estate has been traditional. In 2008, sales failed to pick up with their usual gusto in late winter because the financial crisis cast a shadow of fear over buyers, and lending seized up.

“Between the fall of 2008 and March of 2009, there was a long dead period in real estate,” says Ken Shuman, spokesman for the real estate Web site Trulia.com. “You don’t want to buy a house if you don’t have job security, and a lot of people had jobs but didn’t feel too secure about them.”

2009 didn’t follow typical trends, either. Fall, when sales usually plummet, saw more sales activity than usual this year because of the introduction of the government’s tax credit, which was initially set to expire on Nov. 30, 2009.

Improving the Odds

Granted, some sellers have no choice but to sell at a slow time of year. Job relocation and the need to free up assets are facts of life that can deprive families of the luxury of waiting until the peonies bloom to put their homes on the market.

But Hall says that there are ways to improve your chances of a sale if you have to list your home late in the year, like playing up holiday decorations and shoveling walkways tomaximize curb appeal. She adds that selling at this point in the cycle isn’t always the worst fate.

“Look at how you can turn it to your advantage. Maybe because you’re forced to sell at a different time, there will be less competition,” she says. “Also, be realistic about your price. If you know you’re selling at a tough time, it can be a tough call, but you might have to drop that price a little.”

Shuman and Hall agree that the season shouldn’t be the only factor homeowners consider when getting ready to sell. Paying attention to the vagaries of the local real-estate market, where inventory and prices can fluctuate week to week, will offer more guidance to sellers than simple seasonal trends.

“Check out your local inventory,” says Hall. “Read the housing-market blogs, follow the local market really carefully, and look at the unemployment rate. That will make a big difference.”

For smart sellers, Shuman and Hall agree, taking a chance and starting the sale process earlier will reap distinct benefits in 2010.

“The beginning of the year is going to be make-it-or-break-it,” says Shuman. “If you’re a seller, get your property listed as early in the year as you can.”

Stacy Williams owns a three-bedroom house with a full basement and central air-conditioning in a quiet neighborhood on the upper west side of Youngstown, Ohio.

Williams, now 33, was earning $8.05 an hour as a manager at McDonald’s when she moved into the house with her husband, a laborer at a construction equipment manufacturer, and son back in 2004. The couple’s combined annual salary was $33,000. But the purchase didn’t require much of a financial stretch: The house cost $48,000. “If you have the credit score to do it, there’s nothing that can stop you from buying a home in Youngstown,” said Williams, whose plans for the house include a second bathroom.

A fallout from the real estate slump is that once again many homeowners are forced to look for homes that are within their budget. Access to cheap adjustable-rate mortgages gave many Americans the chance to live in homes that under normal circumstances they could have never afforded. People such as the Williamses are lucky that their income matches up well with the average home prices in Youngstown, but if they had lived somewhere more expensive, they might not have been able to buy their own home or would have spent too much, and now could have been facing the prospect of foreclosure.

So what metro areas are most and least affordable? The Youngstown metro area, which has a median income of $52,000 and a median home price of $77,000, is the second most affordable metro area in the U.S., according to the new National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) for the second quarter. BusinessWeek.com used the index to rank the 10 most affordable and 10 least affordable major metros based on incomes and home prices. Indianapolis was the most affordable—91.6% of homes sold in the second quarter could be afforded by median-income households. The least affordable was the New York City-White Plains (N.Y.)-Wayne (N.J.) metro area, where only 11.4% of homes are affordable to median-income earners. (A decade ago, 66.4% of New York-area homes were affordable).

Affordable Youngstown

Stacy Williams owns a three-bedroom house with a full basement and central air-conditioning in a quiet neighborhood on the upper west side of Youngstown, Ohio.

Williams, now 33, was earning $8.05 an hour as a manager at McDonald’s when she moved into the house with her husband, a laborer at a construction equipment manufacturer, and son back in 2004. The couple’s combined annual salary was $33,000. But the purchase didn’t require much of a financial stretch: The house cost $48,000. “If you have the credit score to do it, there’s nothing that can stop you from buying a home in Youngstown,” said Williams, whose plans for the house include a second bathroom.

A fallout from the real estate slump is that once again many homeowners are forced to look for homes that are within their budget. Access to cheap adjustable-rate mortgages gave many Americans the chance to live in homes that under normal circumstances they could have never afforded. People such as the Williamses are lucky that their income matches up well with the average home prices in Youngstown, but if they had lived somewhere more expensive, they might not have been able to buy their own home or would have spent too much, and now could have been facing the prospect of foreclosure.

So what metro areas are most and least affordable? The Youngstown metro area, which has a median income of $52,000 and a median home price of $77,000, is the second most affordable metro area in the U.S., according to the new National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) for the second quarter. BusinessWeek.com used the index to rank the 10 most affordable and 10 least affordable major metros based on incomes and home prices. Indianapolis was the most affordable—91.6% of homes sold in the second quarter could be afforded by median-income households. The least affordable was the New York City-White Plains (N.Y.)-Wayne (N.J.) metro area, where only 11.4% of homes are affordable to median-income earners. (A decade ago, 66.4% of New York-area homes were affordable).

Buyer’s Blues in New York

Longtime Manhattan renters Olive Hayes, 64, a New York City nurse, and her husband, Kevin, a Verizon employee, were hoping to spend no more than $450,000 when they started looking for a house more than a year ago. Hayes said she wanted a large apartment with a terrace and a separate living room and dining room. They wanted to buy, in part, because Hayes plans to retire and they will have to give up the spacious two-bedroom apartment they rent from the hospital. It’s located in a doorman building overlooking the East River on 96th Street and First Avenue.

On Aug. 25, the Hayeses closed on a one-bedroom pad in a newly built condo building eight blocks north of their current home. It doesn’t have a terrace and is about 764 square feet, much smaller than what Olive Hayes had originally hoped for. It’s going to be a tight fit for her plants and piano. “It’s not easy. It would probably be $1.5 million for what I’m used to,” she said.

Hayes’ agent, Lynda D. Gray of Bellmarc Realty, said first-time buyers in New York often have to lower their expectations and stretch their finances. “The motivator is the investment,” she said. “You’re not going to have as much space as you like…but you’re going to be able to sell for a profit and possibly buy something outside of the city.”

The 10 Most Affordable Housing Markets

1. Indianapolis-Carmel, Ind.
Median home price: $108,000
Median household income: $65,100
Share of homes affordable to median-income families: 91.6%
Share of affordable homes in Q2 1998: 73.1%

2. Youngstown-Warren-Boardman, Ohio-Pa.
Median home price: $77,000
Median household income: $52,000
Share of homes affordable to median-income families: 90.1% 
Share of affordable homes in Q2 1998: 80.1%

Wikimedia.org/Andrew Balet

Detroit-Livonia-Dearborn

3. Detroit-Livonia-Dearborn, Mich.
Median home price: $92,000
Median household income: $54,400 
Share of homes affordable to median-income families: 88.4%
Share of affordable homes in Q2 1998: 62.8%

4. Warren-Troy-Farmington Hills, Mich.
Median home price: $140,000
Median household income: $78,800 
Share of homes affordable to median-income families: 86.8%
Share of affordable homes in Q2 1998: N/A

5. Grand Rapids-Wyoming, Mich.
Median home price: $112,000 
Median household income: $59,200
Share of homes affordable to median-income families: 86.3% 
Share of affordable homes in Q2 1998: 74.8%

Wikimedia.org/Joel Rossol

Toledo

6. Toledo, Ohio

Median home price: $104,000
Median household income: $60,100 
Share of homes affordable to median-income families: 85.5%
Share of affordable homes in Q2 1998: 77.3%

7. Dayton, Ohio
Median home price: $102,000 
Median household income: $59,800 
Share of homes affordable to median-income families: 85.4% 
Share of affordable homes in Q2 1998: 83.8%

8. Akron, Ohio
Median home price: $100,000 
Median household income: $61,700 
Share of homes affordable to median-income families: 84.5%
Share of affordable homes in Q2 1998: 69.6%

Syracuse

9. Syracuse, N.Y.

Median home price: $98,000
Median household income: $61,000 
Share of homes affordable to median-income families: 84.2%
Share of affordable homes in Q2 1998: 83.6%

10. Scranton/Wilkes-Barre, Pa.
Median home price: $91,000 
Median household income: $54,700 
Share of homes affordable to median-income families: 82.5%
Share of affordable homes in Q2 1998: N/A

View the 10 least affordable housing markets.

Great jobs, schools, housing—these 10 small cities have all that and more

Courtesy of City of Plymouth, Photo: Martha Johnston

Plymouth’s Medicine Lake at sunset

Chances are, you love the corner of the nation your family calls home. And that’s exactly as it should be. But let’s face it: Certain towns have more of the things that make a place great for raising a family and building a rich life—like plentiful jobs, excellent schools, scenic beauty and houses that won’t suck away your last dime.

As we do every year, we set out to identify those communities that just seem to have it all. We analyzed the nation’s small cities, those with populations of 50,000 to 300,000. That means you won’t find, for example, Chicago on our top 10 list—but you will find places that offer Chicago-like amenities (such as cafés and culture) plus other benefits the Windy City can only dream of (such as low crime and affordable homes).

These 10 towns aren’t mere suburbs; they’re places in their own right, with thriving commerce and job growth. That means many residents need not leave town for work—a huge plus with gas at $4—and some rarely need to drive at all. One result: a strong sense of community. “One of the great things about walkable cities is that if you’re constantly passing by someone you don’t know, eventually you say hello,” says Elizabeth Plater-Zyberk, dean of the University of Miami’s School of Architecture.

No 1: Plymouth, Minn.

Population: 70,100

Miles from Minneapolis: 10

Number of lakes: Eight

Rank of its main school district: Top three in the state

Pros: Plenty of green, great schools, close to the Twin Cities

Con: A long, cold winter

When Steve and Sarah Berg had their second son, Tanner, back in 1993, they were living in a Minneapolis suburb full of older people and craving a more congenial place to raise their family. They drove through Plymouth and knew they’d found the perfect spot. “It was National Night Out, and we went past all these neighborhoods with hundreds of kids outside, and I said, ‘Okay, we’ve got to move here,’ ” remembers Sarah, a 43-year-old stay-at-home mom. She and Steve, 43, a managing director at an investment firm, bought a house near the wooded 310-acre French Regional Park, and they’ve never looked back. “Whether it’s grocery shopping, entertainment, friends or activities,” Sarah says, “Plymouth is great for raising a family.”

Courtesy of City of Plymouth

Steve Berg and sons Tanner (left) and Andrew head to Medicine Lake

Topnotch schools, good jobs, affordable housing, low crime, an active outdoor culture—yep, they’re pretty much all here. Ten miles from Minneapolis and 18 from St. Paul, Plymouth (originally a Dakota Indian settlement) could easily have become just another Twin Cities suburb. But more than 50,000 jobs in industries from professional services to education keep many residents working in town. Home prices, while not dirt cheap, are hardly stratospheric: The typical three-bedroom, two-bath house goes for $350,000. Education is a big draw—the city’s main school district is ranked among the top three in the state—and the arts are close at hand. Plymouth’s open-air amphitheater, the Hilde Performance Center, hosts numerous summer concerts, including symphonies by the Minnesota Orchestra. Residents are a quick drive from the Twin Cities’ professional sports teams and the Mall of America, the nation’s biggest mall.

Courtesy of City of Plymouth

Kids playing at the Hilde Performance Center

And did we mention the outdoors? Plymouth boasts more than half a dozen sizable bodies of water, including Medicine Lake, a huge (900-plus-acre) magnet for boaters, water skiers and fishermen. Want to learn how to wakeboard? The city offers a tutorial. And with 53 parks and more than 100 miles of trails, residents such as finance director Darren Harmon, 38, can walk, bike and jog on paths that connect every neighborhood. “There are lots of places to go to enjoy a meal or a cup of coffee,” he adds.

Of course, this being Minnesota, winter can be brutal: The average low temperature in January is about 13°F. But when the mercury plummets, the locals get busy. In February the city hosts a Fire & Ice Festival that includes mini-golf, bowling and basketball—all right on the ice. “There are sledding hills everywhere, and ice rinks and lakes for skating,” says Della Kolpin, 45, an architect. “When you live in Minnesota, you embrace it.”

No. 2: Fort Collins, Colo.

Courtesy: City of Fort Collins

Population: 129,500

Miles from Denver: 59

Hiking and biking trails: 25 miles

Average July temperature: 
69°F

Pros: Environmentally minded, lots of high-tech jobs, outdoor paradise

Con: More than an hour from a major city

One of the first things you notice about this Rocky Mountain city is that practically every new road has a bike lane. Even the wheelless can get in on the action now that Fort Collins (which ranked No. 1 on our list in 2006) has a bike library in the middle of its historic downtown: Residents and visitors can check out a bicycle for up to seven days, free. “I’m generally out on my bike two to three times a week,” says Greg Churchman, 46, who owns a human-resources consulting firm. He and his wife Beth, 50, a probation officer, sometimes ride to nearby Horsetooth Reservoir with their sons James, 16, and Lucas, 14. “The park and trails system in this town are incredible,” says Beth.

Even if you’re not the outdoorsy type, Fort Collins has a ton to recommend it. Old Town, the city’s historic district, contains four microbreweries and more than two dozen restaurants, most of them with alfresco seating. A healthy concentration of bioscience and tech companies, including Agilent Technologies, Hewlett-Packard and Kodak, keeps employment opportunities high. Colorado State University occupies a scenic spot in the middle of town, providing a college-town feel and youthful energy. And the city is on the forefront of environmental planning; it just received a grant from the Department of Energy to start a solar-energy project downtown. As for health care, the award-winning Poudre Valley Health System will soon be home to a brand-new cancer center.

While the excellent schools have been overcrowded in recent years, officials have taken steps to correct the problem by moving some grades to different buildings. “I moved here for the quality of the schools and basically the quality of life,” says Tracy Riley, 39, a marketing communications specialist who arrived last year from Windsor, Calif. “Fort Collins has everything.”

No. 3: Naperville, Ill.

Courtesy: City of Naperville

Population: 142,900

Miles from Chicago: 26

Job growth: 18.8% since 2000

Public library: Ranked No. 1 among small cities

Pros: Topnotch schools, abundant parks, a booming downtown

Con: Lots of traffic

When Pete Makris’ employer, a large winery, transferred him to an office in Chicago’s populous western suburbs last year, he and his wife Libby had their pick of towns to live in. Naperville won in a landslide. “The education and the services here just blew away any of the other places we could have chosen,” says Pete, 40. They love Naperville’s schools (they have three daughters, Olivia, 8, Anna Grace, 7, and Hope, 3), vibrant downtown and strong sense of community. “You meet incredibly nice, wonderful people almost on a daily basis,” Libby says. “And I think that’s pretty rare.”

No wonder Naperville has made MONEY’s Best Places list three times now. The walkable downtown area is packed with restaurants and shops. Residents point you toward the popular Riverwalk, a nearly two-mile brick path that follows the DuPage River’s course through town. On it you’ll pass Centennial Beach, a swim park fashioned out of an old quarry, and Millennium Carillon, a 72-bell tower that sits at the base of grassy Rotary Hill and plays music three times a day. A renovation, due to be completed next year, will make the path even more scenic.

Naperville’s proximity to Chicago—it’s just 30 miles away—is a plus, but there are plenty of jobs to be had right here. Edward Hospital and Nicor Gas employ more than 8,000 people between them, and companies such as BP America, Lucent and Tellabs have offices in town as well. Graduates of the city’s schools handily outscore state and national averages on college entrance exams. And Naperville residents like to boast that their public library is ranked the best in the nation among small cities by Hennen’s American Public Library Ratings.

On the downside, housing is pricier here than in some nearby suburbs; the typical three-bedroom, two-bath house runs $380,000. And congestion on the city’s major roads can slow traffic to a crawl. But for Kristen Bolduc, 39, a stay-at-home mother of three who moved here 16 years ago, the good things far outweigh the bad. “I’m very lucky to be raising my family in this area,” Kristen says. “We’ll never move.”

No. 4: Irvine, Calif.

Courtesy: City of Irvine

Population: 194,000

Miles from Los Angeles: 36

Green space: One-third of the city

Sunny days per year: 280

Pros: Topnotch schools, great weather, lots of green space

Con: High home prices

Long before developers embraced the idea of mixed-use communities where residents could live, work and play, there was Irvine. Born in the 1960s, when the University of California commissioned architect William Pereira to design a new campus and town, “it was one of the first of the large planned communities that offered residents more than just a house and a yard,” says Jerold Kayden, a professor of urban planning and design at Harvard University.

Today, Irvine’s population hovers around 200,000, yet it feels much smaller thanks to its tight-knit neighborhoods and more than 16,000 acres of green space. From their house here, Megan and Brent Gess and their daughters, Emily, 10, Natalie, 7, and Lily, 4, can walk to six different parks. “Most neighborhoods have their own pools, swim teams and recreation programs,” says Megan, 34, a mergers-and-acquisitions attorney. “It makes for very close communities.”

Families say Irvine is pretty close to perfect. The school district has won national recognition, and not just because of stellar test scores. Innovative curriculums, year-round schedules and open-style classrooms all win kudos. “Education is a high priority here,” says Brent, 37, an intellectual-property attorney. “We’re surrounded by a lot of very smart people”—in part because the university is the city’s largest employer. Some two dozen international companies, from Gateway to St. John’s Knits, also call Irvine home.

One drawback—and it’s a big one—is the cost of housing. While median prices have fallen nearly 19% since the 2006 market peak, a typical three-bedroom, two-bath house still runs about $700,000, says Cesi Pagano, a realtor with Keller Williams Realty. But prices in Irvine have held up better than those elsewhere in Orange County, and foreclosures aren’t nearly as widespread.

No. 5: Franklin Township, N.J.

Courtesy: Township of Franklin

Population: 59,200

Miles from New York City: 33

Green space: 11,930 acres

Typical single-family home:$385,000

Pros: Natural beauty, diversity, affordability

Con: High taxes

When you hear the phrase “primeval old-growth forest,” chances are New Jersey doesn’t spring immediately to mind. But the state known for jokes about its mammoth turnpike does in fact boast such a pristine wilderness: a 65-acre one. In Franklin Township. This surprising 46-square-mile municipality, home to several different villages, also contains a towpath along a 19th-century canal beloved by bikers and runners, and bucolic back roads dotted with colonial houses and working farms. “The other day I saw a fox in my backyard,” says Angela Wen-Bianchi, 37, a full-time mother who moved here in 1998. Is this place really just an hour from Manhattan?

Residents can catch a train to New York City in neighboring New Brunswick, which also has good restaurants and theaters, but they need not head to the big city to find jobs. There are plenty of high-tech, pharmaceutical and research and development firms in the area, not to mention Princeton just to the south and Rutgers and Robert Wood Johnson Medical School to the north. What’s more, housing is a deal—for this part of the country, anyway. Starter homes go for less than $250,000 in Somerset (the neighborhood closest to Manhattan); a lovely Cape Cod on nearly an acre in the verdant historical village of Griggstown recently listed for $369,500. And the solid school system has a 95% graduation rate.

On the downside, New Jersey’s tax burden is notoriously high. The township’s property taxes run about $7,000 for the typical $385,000 three-bedrooom, two-bath house. Still, for overall affordability, convenience and natural beauty, as well as remarkable economic, religious and ethnic diversity, nowhere else in Jersey—and few places anywhere—can match it.

No. 6: Norman, Okla.

From: www.normanoklahomarealestate.us

Population: 102,800

Miles from Oklahoma City: 17

Typical single-family home:$163,600

People at the typical OU game:84,860

Pros: Affordable housing, football mania

Cons: Severe weather, football mania

Sit down for lunch at Café Plaid in Norman and you’ll see a little of everything: mothers with babies, students with laptops, and out-of-towners visiting the University of Oklahoma across the street. The café is a perfect microcosm of Norman itself. People flock here from around the world to study and teach—and then to stay and raise a family.

Carlos Lamarche, 36, a professor at OU who is originally from Argentina, had several job offers around the country after completing his Ph.D. in the spring. But he and his wife Barbara liked Norman because, he says, “We felt this would be a great place to raise a family.”

The university not only helps draw educated workers here but also serves as a major source of entertainment for residents. When the OU Sooners play football against their longtime rival, the University of Texas, Norman schools are almost always closed on Friday (you read that right) and the town packs the stadium. That’s terrific if you love all things gridiron. If you don’t, then not so much. Console yourself with the campus’ world-class art museum, which houses works by Degas, Monet and Renoir.

Affordability is another plus: Starter homes go for about $135,000. While Norman hasn’t had huge run-ups in housing prices, the city has also been spared the devastating downside.

No 7: Round Rock, Texas

Courtesy: City of Round Rock

Population: 92,400

Miles from Austin: 17

Typical single-family home:$192,500

Job growth since 2000: 46.8%

Pros: Affordable homes, loads of outdoor amenities

Con: One employer dominates the economy

When Walter Rock, 49, moved here in 1990, he says, the biggest entertainment was watching people play dominoes in front of the gas station. Now, says the engineer turned real estate agent, “I rarely have to leave Round Rock for anything.”

Once merely a bedroom community of Austin, Round Rock today is very much its own city thanks largely to three things: affordable housing, excellent schools and computer maker Dell, which has established its headquarters here.

The city boasts three medical centers and a campus of Texas State University. There’s a lot of shopping, from an IKEA to a premium outlet mall, and a minor league baseball team, the Round Rock Express. Residents enjoy more than 800 acres of open space, two golf courses and 64-mile-long Lake Travis, just west of the city.

No. 8: Columbia/Ellicott City, Md.

Courtesy of Columbia Association

Population: 
158,800

Miles from Baltimore:
21

Median family income:
$107,318

Job growth since 2000: 
10.7%

Pros: Strong economy; family-friendly amenities

Con: Traffic can be heavy

One of the nation’s oldest settlements (it was founded in 1772), Ellicott City snuggles up to one of its newest, Columbia (a planned community conjured up out of 14,000 acres of farmland in 1967). This duo remains a perennial contender on our Best Places list thanks to its mix of charm, comfort and careful zoning.

Historic Ellicott City’s steep Main Street is lined with antique shops and teahouses, while Columbia, a cluster of nine residential villages around a town center, is home to offices of such high-powered tech companies as Arbitron, Merkle and Northrop Grumman. No wonder residents’ median household income has risen more than 20% since 2000.

Though traffic can be a headache, it’s easy to escape it: More than a third of Columbia’s acreage has been set aside as open space, including a 950-acre nature preserve, a skateboard park and three lakes.

No. 9: Overland Park, Kans.

Courtesy: City of Overland Park

Population: 166,700

Miles from Kansas City: 10

Typical single-family home:$275,000

Job growth since 2000: 16.8%

Pros: Reasonably priced housing, great job market

Con: Sometimes feels a little too planned

Overland Park’s flat terrain and grid layout don’t provide much drama, but for its residents, reasonable housing prices, good jobs and proximity to Kansas City, Mo. are excitement enough. “I’ve had a lot of opportunities to move,” says Chris Price, 46, a manager at an engineering consulting firm, “but the quality of life has always kept us here.” The city (where Sprint Nextel employs 12,000 people) recently began building a dozen soccer fields to host national tournaments—good news for local businesses. There are six major medical centers here too, and schools are among the best in the nation. Happily, development hasn’t paved over the green space: The Arboretum and Botanical Gardens covers 300 lush acres, for example.

No. 10: Fishers, Ind.

Courtesy: Town of Fishers

Population: 61,800

Miles from Indianapolis: 15

Economic development spending: $700 million from 2008 to 2010

Transit: New rail line in the next five years

Pros: Public transportation, growing economy

Con: Minimal downtown

Fishers is growing fast, attracting residents who are young (median age: 30) and smart (over 60% have a bachelor’s degree or more). It has the range of pluses common among our top 10, including a strong economy (lots of life-science companies are moving in), low home prices ($149,700 for the typical house) and good schools (they get high rankings in the state). Though a walkable downtown is still in the planning stages, transportation is already here: Fishers started a commuter bus service to downtown Indianapolis and plans rapid transit via rail in the next two to five years. When it comes to smart planning and sheer livability, other places could learn a lot from this little city in the Midwest.

WASHINGTON – Buying a home is about to get cheaper for a whole new crop of homebuyers — $6,500 cheaper.

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the Senate voted Wednesday to extend and expand the tax credit to include many buyers who already own homes. The House is scheduled to vote on the bill Thursday.

Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn’t owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.

“This is probably the last extension,” said Sen. Johnny Isakson, R-Ga., a former real estate executive who championed the credits.

The homebuyers tax credit is one of two tax breaks totaling more than $21 billion that the Senate included in a bill extending unemployment benefits for those without a job for more than a year. The other would let companies now losing money recoup taxes they paid on profits earned in the previous five years.

“We are still in a world of economic hurt, and Congress must continue to act boldly and creatively,” said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee. “With the right mix of tax breaks and investments we will get through this recession and get folks working again.”

The real estate industry has been pushing to extend and expand the housing tax credit. About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.

Extending and expanding the tax credit for homebuyers is projected to cost the government about $10.8 billion in lost taxes. While the measure passed the Senate by a 98-0 vote, Sen. Kit Bond, R-Mo., questioned its efficiency in stimulating home sales.

“For the vast majority of cases, the homebuyer tax credit amounted to a free gift since it did not affect their decision to purchase a home,” Bond said. “And for the small minority of buyers whose decision was directly caused by the credit, this raises the question of whether we are subsidizing buyers who may not have been able to afford buying a home in the first place.”

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.

Expanding the tax credit for money-losing companies is projected to cost $10.4 billion.

The business tax break would allow money-losing companies to use current losses to offset taxable profits earned in the previous five years, giving them refunds of taxes paid in those years. Under current law, businesses with annual gross receipts of more than $15 million can claim losses back only two years.

The tax break would help industries suffering losses in 2008 or 2009, including retailers, homebuilders and newspapers. Congress included a scaled-back version of the tax break — for companies with revenues of $15 million or less — in the economic recovery package enacted in February. The new tax break would be available to companies of any size, providing a quick source of cash.

The U.S Chamber of Commerce has been a big backer of the tax break for money-losing companies.

“It frees up capital that they can use to maintain jobs and potentially even hire new people as the economy returns,” said Caroline Harris, senior tax counsel for the U.S. Chamber of Commerce.

The tax breaks would be paid for largely by delaying a tax break for multinational companies that pay foreign taxes. It was passed in 2004 and originally was to have taken effect this year, but would now be delayed until 2018.

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The bill is H.R. 3548.

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On the Net:

Congress: http://thomas.loc.gov