5 of 7
BACKNEXT
Memphis, Tenn.
Median home price: $108,000
Value lost since 2006: 19.9%
Forecast gain by 2011*: 1%

The Memphis metro area boasts some of the most affordable housing in the country -- and it grew considerably cheaper during the past few years, falling nearly 20%.

That downturn will continue for another year or so, with prices declining another 1.2% before rebounding 2.2% during 2011. Averaged out, that means a 1% gain over the next two years*.

The economy here has always been tied to the city's position on the Mississippi and, more recently, the intersection of several railroad lines and two major interstates.

Those factors, plus a business-friendly environment, helped attract such heavy hitters as FedEx and AutoZone, a Fortune 500 autoparts retailer. "Memphis," said Mark Fleming, chief economist for First American CoreLogic, "is perfectly positioned for distribution nationwide."

Still, unemployment in the metro area has been a problem lately, with the rate rising to 10.4% in August.

The metro area has been growing steadily in population since the 2000 census, up nearly 7%. The added demand for housing should support home prices, although land in the city's far-flung exurbs can be purchased and developed quite reasonably. The competition from new home builders tends to keep a tight lid on the gains of existing home prices.

NEXT: Oakland, Calif.

Last updated October 21 2009: 4:51 AM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
Source: Fiserv
* From June 30, 2009, through June 30, 2011.
More Galleries
8 must-have travel apps Whether you've got wanderlust or an airline grievance, here are some apps to pack onto your phone. More
Hot stocks: 10 record breaking companies The S&P 500 is trading at all-time highs, and many well-known businesses are leading the charge. Time to buy or sell? More
My biggest retirement mistake Five CNNMoney readers share stories about saving that you can learn from. What they would do differently if they had another chance. More

Special Offer
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.