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.

[...]

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).

[Hat tip to Jade at WTTN]