While I have called Chicago my home for the past 10 years, I grew up in the "Lou," or better known as St. Louis by outsiders. So with my allegiance split between the two cities (sorry Redbirds, I'm an official Cubs fan now), it put a smile on my face to see that St. Louis ranked No. 3 on Forbes.com's 2008 "10 Best Cities to Buy a Home" list.
Home sweet home
When I was growing up, St. Louis's downtown area comprised of large sections of abandoned buildings and run-down neighborhoods. Racial tension and economic strife over the past two decades contributed to massive urban blight, with many families flocking to neighboring suburbs outside the city limits.
While the city boasts historic landmarks like the Old Court House building and Union Station, the downtown area largely became desolate after special events held in the city. But in recent years, thanks to revitalization projects spearheaded by the city and private investors, St. Louis has sparked new residential and commercial developments along the Washington Street corridor and along the riverbanks, breathing much-needed life back into the fledgling metropolis. With a thriving bar and entertainment scene, St. Louis has also attracted many recent college grads who are looking for cities where they can live, work and play.
Home prices and vacancy rate
Forbes.com's list of Best Cities to Buy a Home was constructed by examining the country's 40 largest metropolitan areas and looking at where home prices have appreciated over the last two years. The survey also measured tightening vacancy rates. These metrics indicate places where buyers are investing in homes in order to live, not just make a quick buck, and where the housing market is relatively solid. The data was taken from vacancy and home price information from the U.S. Census Bureau and the National Association of Realtors.
Forbes also factored in the spread between the average monthly rent and mortgage payments at the median level based on a 10 percent down payment and a fixed interest rate of 6.25 percent.
Texas did very well in its ranking, dominating Forbes's mortgage-worthy areas. Houston came in on the list at No. 1, Austin No. 2, San Antonio No. 5 and Dallas No. 6.
Top 10 cities:
This 4-bed, 3-bath Houston, TX, home is listed at $175,000.
1. Houston, TX:
· Median home price: $152,000 with home price on rise by 6.6 percent
· Home vacancy rate has dropped by 11.3 percent in last two years
View Houston, TX, homes for sale
This spacious 4-bed, 2-bath, Austin, TX, home is listed at $275,000.
2. Austin, TX:
· Average mortgage payment: $1,022.40 vs. average rent of $767
· Home vacancy rate has dropped 37.5 percent in last two years to 1.5 percent.
View Austin, TX, home for sale
This 1-bed, 1-bath, condo in St. Louis, MO, is located just steps away from nearby restaurants and bars. The unit is listed at $129,995.
3. St. Louis, MO:
· Median home price: $145,400
· Strong economy with major companies, such as Anheuser-Bush and Edward Jones, headquartered in the city
View St. Louis, MO, homes for sale
4. Philadelphia, PA:
· Home vacancy rate: 1.9 percent
· Median home price: $234,900, up from $215,000 in 2005
View Philadelphia, PA, homes for sale
5. San Antonio, TX:
· Home vacancy rate: 2.4 percent
· Median home price: $150,900, up from $133,900 in 2005
View Antonio San Antonio, TX, homes for sale
6. Dallas, TX:
· Median home price: $150,000
· Home vacancy rate: 2.5 percent
View Dallas, TX, homes for sale
7. Charlotte, NC:
· Median home price: $205,400, up from $180,900 in 2005
· Home vacancy rate: 3.1 percent
View Charlotte, NC, homes for sale
This 2-bed, 1-bath, Victorian-style home in San Francisco is listed at $849,000.
8. San Francisco, CA:
· Median home price: $805,000, up from $752,200 in 2005
· Rich in history, culture, restaurants and entertainment, this city also made Forbes' Best Cities for Young Urban Professionals.
View San Francisco, CA, homes for sale
9. Jacksonville, FL:
· Median home price climbed 14 percent in last two years to $189,200.
· Population has grown by 8 percent over the past seven years.
View Jacksonville, FL, homes for sale
This stylish 1-bed, 1-bath Atlanta, GA, condo is listed at $175,000.
10. Atlanta, GA:
· Median home price: $170,000
· Strong economy with low cost of living
View Atlanta, GA, homes for sale
Got hot local housing tips or a story you want to share? Contact Amy Le at openingdoorsblog@homescape.com.
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