Well it's 2005 now. I wonder if these answers still hold. Or any new ideas.

We live in a small town in West Texas, approx. 100,000 pop. I'm a LVN and DH is an in-town truck driver. We purchased an older home in a nice area, typical neighborhood, built 1955, 3 bedroom, 2 bath, 1,185sq foot that had been gutted and remodled through out for a mere: $49,000.

It can be done, but you will have to move out of the major metropolitian areas.

We lived in Dallas from 1986 to 1999 and we could buy a nice house there for around $100,000 to $150,000, but they we small like the one we have now. We ended up uying a manufactured home on an acre of land 45 minutes from work for $82,000. Land was another $17,000. The house was 2,200 sq. foot though.

The further from either coast and any big city, the cheaper the housing, obviously. The trick here is to find an area where you still have some of the benefits of either or both, but can find a house under 150K.

Let's see -- the Raleigh-Durham-Cary-Chapel Hill area of North Carolina! Housing prices are creeping up here, but there are areas where you can still find a very nice new house in that range.

There are homes in Tampa for urban pioneers at that price. But be prepared for a desirable home in an undesirable neighborhood. BUT...that's how one ends up with desirable real estate as cities like Tampa go through twists and turns as people, like yourself, search for desirable housing. But I'm sure that's not what you're looking for.

Govenator you brought up an old one but I'll give you an answer. Hope you actually want one and read precisely what I am posting. These are important places to "start" from on this issue. But, of course, each region has definite variables.

Everywhere I travel I visit at least one real estate office. Following is my experience/thoughts.

You can buy a home with quality for that (plus land) in many of the states that many call "fly-over" country. Not all, but most.

If you insist on city living or very close access, your choices will be cut significantly. Regardless, many smaller cities have this price range.

One thought not mentioned is that land and property on inland lakes is a finite quantity. (Exception man-made lake/subdivision- artificial and not what I am posting about.) Think about what that means. I have found within the last ten years lake property is what has appreciated the most. And in almost every non-coastal state.

Saying that, I have scoped out houses in Kentucky / Tennessee that are beautiful and talk about bang for your buck! Near Knoxville, in the foothills especially. Arkansas lakes have some buys now that are beyond belief. And they are not going to last beyond about 2010 at the most. The Boomers are retiring and buying up quickly.

The biggest advice I have for someone wih your question is this. Consider-
JOB (you don't mention and beyond that family needs, but also think way outside the norm on this and possible self employment.) The more you think like the marketing people, the worst off your choices will be. If you haven't heard about the spot, that's GOOD. Check it out.

There are some drop dead beautiful locations in Michigan that are still selling for $40,000 for 20 acres or more. One friend built for less than $150,000 a 2400 sq.foot deluxe home with homestead taxes that are 1/8th, yes 1/8th of what mine near Chicago are. In towns there you can get a 100 year old Victorian for $80,000. (And need $60,000 to fix, at least!)

DO NOT CONSIDER PLACES that are retire-speak, like NC, SC, FL, AZ etc. There are still bargains there but they have boom/bust times galore, because of popularity/economic cycles. Doesn't stop the majority of people. Good for them, but you are looking for something "out there" that is a good deal. I have two friends in FL (Englewood and Venice) who can not sell there homes for what they bought them for several years ago.

Best deals now are on lakes. Scared myself to death, but just did it 3 years ago this June. The house was just under the $150K in the original post. It's three bedroom, 2 bath 1987 modular and quite nice but not an estate, by any means (2200 sq.feet.) I had to do extremely little except rehab the three level deck. Someone this last week offered me $275K for the house, as is. Detroit/ Chicago natives have found our big lake.

There are some lakes out there, few have found yet. I spent about 45 weekends over 10 years riding around lakes in 3 states. It was great fun and visited many B&B's also. If you want beautiful farm property, you can get LARGE with circa houses and stables for great prices in Iowa, Illinois, Michigan, Indiana, Missouri for sure. Those are the ones I know well. Many towns are 22,000-50,000 pop. nearby and have great quality of life reports. In town homes run about $80k to $100k for best, but do not have the land attachments. Anything you consider, you do need to get a lawyer/professional from that state to verify tax structure, property tax levels, conditions of ownership for your situation in particular. Many states have vastly different taxing bodies and homestead laws.

I, at this time, pay taxes in two states and at very high amounts in both because of the two home rules. If it is your first and only home, you may still need to access tax structures vs costs etc.

Lastly, you can still get a condo in Chicago suburbs for this amount and sell it eventually for about the same. But they are not in easy commute time from downtown. Condos in my surburb are running up to 275K now, big ones- with basements and garages. Small ones are between 150k-180k and are usually needing some updating. I'm SW. NW and N you get less for more $. You don't even get bricks or a basement and space is often much less.

Forgot- the last condo statement goes for single family houses dwellings also. They are small (1800 sq.feet to 2000 sq.feet) but usually have basements and are tri-level types for the most part. But they are homes on lots with their own yards/garages (usually attached)and are not condos.

Also important: the diversity issue.
Everyone on these boards seem to think that only cities have the diversity they might require in a place of residence. In my Midwest experience this is just not true. I had a small home in Koontz Lake IND for 10 years and have had one in Michigan for 3. They both are in rural/country areas (counties) but have diverse populations by stats and in nearly every locale. The ages are diverse, as well. A large Amish community is also in close attendance to our town life in Michigan.

Whoever said you could buy a house for 130 or 150K in Phoenix is talking about a cookie cutter house on a lot so small your next door neighbor's house is 6 feet away. And not in a desirable neighborhood. I would say for anything decent, you would have to spend at least 250K, and that would still be on a small lot.

Sigh! No one wants to hear my tale of woe, but I have a 2540 sq ft home in a desirable neighborhood on a 1 1/2 acre wooded lot with fruit trees, azaleas and dogwoods for sale in an area of GA north of Waycross that I CANNOT sell for $119,000!!!

Well - for about $90,000 you could own a permanent spot in my garage. Unfortunately - in Manhattan the average (2 bedroom) condo or co-op goes for over $1 million - plus mainenance of course.

I'm sure there are places you could buy some sort of residence (cabin, teepee??) for $130,000 - but am also fairly sure that there would be no way to make a living there.

Sorry - there has been almost continuous inflation since 1492 - and there is no sign of it stopping anytime in the next several centuries. the laws of nature are simple - swim forward or die (stagnation really isn;t a viable option).

Doesn't Houston have inexpensive housing? We gave friends who moved from Houston to the Seattle area for work. They had to pay more than 2 1/2 times as much for a smaller home that is farther from the city.

pollyvw--We used to live in Kingsland so I know what you are up against, lol! When we sold our house we were very happy, because many friends had a hard time.

Western NY - There are plenty of old Victorian or Arts & Crafts style homes in Buffalo in the 120K-150K range. If you prefer a small town, check out the village of East Aurora (home of Fisher Price HQ's) which is about 18 miles south of Buffalo.

LB,
I bought a nice 1450 sq ft 3BR 1 1/2BA in a nice area of University City (San Diego) in 1975 for $56.5K - no down VA - sold it in 1980 for $143.K. It's now probably close to the median.
I have lived in Dallas for nearly 25 years and cannot imagine any desireable houses in the $100-150K. range within reasonable driving distances of "D". There are many new areas many miles away which might qualify.
M

The unemployment in my small Michigan towns (Marcellus, Lawton) is not any higher than in Chicago. There is employment out there. I actually, at my age, could get a job, if I wanted to there. Less $ than my Chicago job, absolutely. But the salaries there are very appropriate for the relative living expenses, including housing and education etc. It just isn't true that you have to keep running faster and faster to stay in the same place. You will if you remain in a city that is becoming more and more and more competitive, though- or want to move up to one of those regions.

Many people have jobs in education, health care, trades galore, factory, arts, mechanical repair, services etc. etc. etc. People need to get their hair cut, shop etc. just like in most any big city. And they are not always driving to a Wal-Mart either. My stores pack my food and carries it to my car, knows me as well.

No, you are not going to be a trader at the Board of Trade. Yet you might successfully run a well drilling outfit (working about 6 months a year)or something that is more rural related, and be independent and much better off in just a few years. I know at least three young couples who have done this. In fact, from what I am reading,(there was just a tv report on this, and I wish I could remember- I think it was on NBC)- the new STAR up and coming person will be in the educated trades and not in what is now considered white collar and business owner/services "work". Air conditioning /heating/car etc. repair and construction of all types in the lead. Women as well as men. Everyone went to college and now these skills are in great demand. They will be the highest paying jobs and most desireable in the future.

The town itself hires quite a few for governmental capacities/postal etc. One of my towns has a Welch's grape factory and tons of wineries- we are surrounded by vineyards. The coasts' posters on these boards tend to include their own areas in definitive statements,and postulate that for the entire USA. Many "rectangular" states have areas with work available,and also with smaller costs of living in every category- it is a huge country. And the opportunities are out there. They are.
And most of the places are not without libraries, schools, colleges, small theaters etc. My house in Michigan is better than most housing in Chicago, both esthetically and physically. It has pure filtered well water with systems to put water back cleaner than when it came it, heating, air-conditioning, a hot tub, two bath tubs etc. It is definitely not a teepee. And it is on Michigan wetlands that can not be developed. There is a whole lot out there, so don't be negative to those who want to find it.

And for the GA poster, I have empathy. Properties like yours are the best buys in the USA. Someone will find you. And I'm sure yours is not a hut or teepee either.

We have a new definition for the term "land locked" here my town in Sonoma County,CA where the median price of a house is now $715K.
It is simply outrageous.
The only way to profit is to sell and move to another state. Buying again would at least triple our property taxes.
We have been considering Albuquerqe.
Here's an interesting website:
http://www.nmsitesearch.com/
qualityoflife/quality_1_1.htm
R5

Concernng upstate New York - yes there are areas in which housing costs are very reasonable. A friend of mine inherited a house - in I believe elmira - from a deceased uncle a couple of years ago - and he and his siblings were astonished at the price they had to take to get it off their hands. However, in that area jobs are very few and far between - and the ones available seem to be for minimal pay.

So - really the issue is not the price of housing - but the price of housing vs the job and salary market. for someone on a fixed income unrelated to the job market - of course inflation in a big city is onerous =- and they will get the most for their money in a place with very low housing costs - but the same low income situation is rarely good for people starting out or trying to get together the money to raise a family (no one gies you college for free just because to choose to live in a low income part of the country).

And the simple fact is that high income areas go with high real estate prices - and I don;t see how anyone can realisticaly complain about this. If your choice is lower income/lower real estate prices fine - but don;t complain that anyone is doing anything to you - this is just market factors at work.

10 years ago Chicago was still pretty affordable. Not anymore. There are a few decent areas where you can get a house ready to be torn down at that price. You're really looking at $250,000 to start and even then there will be some kind of trade off to make. Still, compared to the coasts Chicago is a bargain. Compared to other inland cities, though, like Indianapolis or Des Moines, Chicago has gotten very expensive in recent years.

I have a small, 2 bed. condo, no garage, laundry downstairs. It's in a very nice inner ring suburb, a relatively quick trip downtown by train, but a long, long way from suburban job markets. I paid $90,000 less than two years ago. Condos here are now selling for $110,000 and up. There are several new condos going up near the train station, starting at almost $250,000. Housing prices have gotten crazy. In the north and west suburbs a condo near the train will start at close to $400,000. I don't have much hope of ever buying a house here.

Oh, and I forget to mention it's a 30 year old building with all drywall construction. Not exactly soundproof.

nytraveler - The problem is that, even in high income areas, housing prices are escalating at a rate that exceeds income levels. The DC area is a prime example.

No way was I complaining about paying high taxes in two places. I could easily avoid paying in one, actually. All I would have to do is make Michigan my first legal residence, and because I use it very much, it would be quite easy.

That is not the perception I meant to give at all. I was just explaining some of the ramifications you need to consider. In fact, I do pay for a rural school, an urban school (both in Michigan) at a millage rate of three times the person with only a Michigan home. But I don't begrudge it at all, just would like to get to vote on issues because of it. I get no vote, yet pay taxes more than farms etc. near me. Something that the Founding Fathers of the USA- rebelled against as they consider representation a primary principle of democratic freedom. Because of the services I do get- to sustain lake quality etc.- and just because of the general community parks/boat launches etc.- whatever extra taxes seem well spent to me.

The young couples (about 10 on a 600 acre lake) that I know have an excellent opportunity to improve their net worth on wages that are just a little less than in prime housing territory. And at the same time their quality of life is terrific. Much better than I had with my young family in a poorer suburb of Chicago. Some of them have doubled the equity in their homes in the last 2 to 3 years, not bad for any start as far as I can see. Friends in Tennessee and in Kentucky have done similarly well. And in the later, some choose to move to a higher housing market etc.- and they, at least, had something to sell toward that very high priced home.

Many young people in Chicago can do nothing much beyond rental with nothing but rent receipts when they are done, at this time.

And as for college costs, that is something that the true middle class has been pounded on in this country for the last 20 years at least. I know who gets the Pell Grants and big cost reductions in both the private and public sector colleges. And middle class people, with two parent incomes get the least. My kids all went to state colleges, had some loans, got some help from me- but in no way did I pay for their entire education. My youngest got his college education free from the Catholic private university I work for, as an employee benefit. There are all kinds of ways to "afford" college, but that is another thread. I have strong belief in making the student the captain of his/her own ship and not to "give" him/her an education. Turned out great adults and terrific citizens in my case. Engineer, CPA, Secondary School teacher, and Occupational Therapist. All of them make more money than I do.

Missouri, Kentucky, Tennesee, most of the South, Arkansas, and other mid-continent areas have many small towns, big towns, where growth and opportunity still abound and a house (single family with yard) can still be obtained for this amount of money. Some college towns are prime also. And they can be very interesting places to live for starter families.