New Rules of Real Estate 2007

How to play the real estate bounce-back

The housing market may be melting down, but Business 2.0 worked with Moody's Economy.com to identify 10 cities that have just about hit rock bottom - and offer opportunities for savvy investors to get in while the getting's good.

Mobile
Mobile
Projected median sales prices for single-family homes:

Q1 2008: $134,580
Q4 2009: $140,920
Growth rate: 4.7 percent

A low-wage backwater at the beginning of the decade, Mobile is emerging as the South's next boomtown and a magnet for megaprojects. The biggest is a $3.7 billion steel mill that German industrial giant ThyssenKrupp is building north of Mobile. It will create 2,700 jobs when it opens in 2010, generate almost twice as many spinoff jobs, and bring in 30,000 workers during the construction phase. Next up is a new container terminal that will catapult Mobile into the big leagues as a shipping port. At the top of the food chain, aerospace contractor Eads just opened a facility on Mobile Bay where 150 high-earning engineers will design Airbus's long-range jets.

Just how great is that for the housing market? Mobile has seen scant home construction during the past two decades, and a housing shortage means the real estate market is set to heat up. Already, a three-bedroom, 2,000-square-foot home that sold for $157,000 a year ago now goes for about $170,000. The trend has captured the notice of speculators from California, Colorado, and Florida.

Dallas-Fort Worth

Indianapolis

New Orleans

Atlanta

Montgomery

Memphis

Mobile

Austin

Houston

St. Louis
4 smart housing plays From snapping up condos on the cheap to tapping the social networking craze to find the best deals, there are ways to work the housing slump to your - and your bank account's - advantage. (more)
Real estate rebound Business 2.0 has found 10 housing markets that are near rock bottom and poised to bounce back. (more) video
Where homes are affordable Residents who buy real estate in these 25 towns see their incomes go the furthest. (more)
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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.