Skimping on Just $500K a Year?

Forbes magazine is at it again... they have ranked the Top Ten Cities To Live on for $500,000. When I first heard about this list - I thought it was the best cities with a median or average home price under $500,000.

Nope.

These are suggestions for the executives whose salary is being capped by the Obama administration when their companies accept bailout money. So where do you live when your annual salary is only $500,000?

And what does that have to do with real estate investing? Check out the criteria Forbes used for the ranking. They surveyed 9000 of the largest U.S. cities and ranked them using:

• Affordability of a 4 bedroom, 2 bathroom, 2200 square foot home
• Patent filing activity in top 10% of cities (indicating innovation)
• High venture capital investing (also indicating innovation)
• Shorter commute time
• Average annual cost of living less than $100,000

In other words - the ranking values affordability (a relative thing), jobs, and quality of life. All things that affect the choice of a good market for real estate investing. So I am not surprised that some of my favorite markets for real estate investing show up on this list: The top cities were:

1. Irvine, California
2. Raleigh, North Carolina
3. Bellevue, Washington
4. Portland, Oregon
5. Sunnyvale, California
6. Redmond, Washington
7. Austin, Texas
8. Chandler, Arizona
9. Rochester, New York
10. Plano, Texas

I think an investor would be well served to investigate Raleigh, Portland, Austin, Chandler, and Plano... probably not quite in the same neighborhoods where these penny-pinching executives will be relocating!

I wonder what Forbes will be ranking next week?