By JIM BAINBRIDGE THE GAZETTE

Gen. William Jackson Palmer's little prairie town is all grown up.

Money magazine's 19th annual survey of the Best Places to Live in America ranks Colorado Springs No. 1 in the big city category, population of 300,000 or more.

The Springs outperformed Austin, Texas, and Mesa, Ariz. - not to mention New York and San Diego - in a study released Monday that factored a range of financial, housing, educational, health, weather, leisure and quality-of-life issues in 59 big cities.

One economic indicator that helped put the city over the top: a median home price of $192,250 that was well below the Best Places' average of $256,659.

"Colorado Springs also did very well on education scores," said Money magazine executive editor Craig Matters, "and in ease of living," which he said included "factors like commute times and health."

The Springs benefited from a change in methodology in the Money survey this year. In 2005, the editors had focused on communities of 14,000 people or larger but this year decided to alter their guidelines and include only those cities of 50,000 or more.

That decreased the sample from around 1,400 communities to 745 and allowed Money's editors to look deeper, Matters said. They increased the number of measuring categories from 23 to 41 and did a breakout of big cities they did not have last year.

This magnified look at each community - and that breakout - pushed Colorado Springs to the top of the list. It was not even mentioned in the top 100 under the previous format.

Fort Collins was No. 1 in the small cities category, 50,000 to 299,999.

"I'm a little surprised we ended up No. 1," said Fred Crowley, senior economist for the Southern Colorado Economic Forum. "I think it is wonderful that we rank well. It speaks well of the community on average. It doesn't matter where we rank in individual categories, but that we rank well overall."

Predictably, business leaders were as happy as if the No. 1 ranking came with a cash prize - which it doesn't.

"It's worth its weight in gold," said David White, marketing vice president for the Greater Colorado Springs Economic Development Corp.

For the EDC, the top billing will help the Springs get noticed as it attempts to recruit new employers, as well as when it seeks to retain existing companies and get others to expand.

"It helps to put us on the radar screen," White said. "It makes more people aware that Colorado Springs is a great place to live. Before, they may not have included Colorado Springs in their site selection survey. It's an important tool in our tool bag to help market the region."

Dennis Donovan, a New Jersey-based consultant who helps companies select locations and who toured the Springs last year, agrees that "once you've got Colorado Springs appearing in such a survey, you go to your boss to get approval, and you say, 'Look, man, Money magazine says this is a great place.' It legitimizes it. It makes it a much easier sell."

Money is the nation's largest personal finance magazine, with nearly 2 million subscribers and newsstand buyers.

Expect the Money magazine ranking to show up on the EDC's Web site, White said. And when the EDC targets an area for a marketing campaign, it plans to place ads in local business journals in the area that tout the No 1. ranking.

"We'll definitely play this for all it's worth," White said.

Will Temby, president and CEO of the Greater Colorado Springs Chamber of Commerce, was also happy to see the ranking.

"I think it makes people feel good about the location in which they reside," he said, "and I think it validates why we live here."

Beyond economics, the Springs also received positive health scores, which match other recent findings. The city was ranked as the third-fittest city in the nation by Men's Fitness magazine in 2005 and came in as the leanest city in a 2005 study by the Trust for America's Health advocacy group.

"We are in a state where recreation is a premium - we have the mountains to hike in, and we have people biking, running - you name it," said Bradd Hafer, spokesman for city-owned Memorial Health System.

Colorado Springs also falls well below the national averages for cancer mortality and cardiac mortality in Money's study.

One category in which the Springs scored poorly was crime. Property and personal crimes ranked above per-capita average compared with the other ranked cities.

In education, local student test scores in reading and math exceeded the state average - but not by as much as the survey's best places overall.

The city outscored the state average by 4.8 percent in reading and 8.3 percent in math, while the top cities exceeded their state averages by nearly 12 percent in reading and 15 percent in math.

What struck many city officials as the most significant aspect of the study was that Colorado Springs scored so well in so many areas.

"I think it might all add up to people wanting the amenities of a big town but all the benefits of a small town," said Amy Long, spokeswoman from Experience Colorado Springs at Pikes Peak, the convention and visitors bureau. "Between the cultural facilities, the schools and other attractions, we have lots of things you normally don't find in a town this small. We have a great balance.

Said Mayor Lionel Rivera: "It is a reflection of job growth of nearly 9 percent since 2000, good housing affordability and purchasing power, clear air, low commute times and a very healthy community. It is very encouraging. It will be a strong attraction for businesses that are considering moving here."

Sarah Colwell, Wayne Heilman, Debbie Kelley, Rich Laden, Brian

Newsome and Anslee Willet contributed to this report

BEST SMALLER CITIES

Money magazine's Best Places to Live in America 2006, population 50,000-299,999: 1. Fort Collins 2. Naperville, Ill. 3. Sugar Land, Texas 4. Columbia/Ellicott City, Md. 5. Cary, N.C. 6. Overland Park, Kans. 7. Scottsdale, Ariz. 8. Boise, Idaho 9. Fairfield, Conn. 10. Eden Prairie, Minn.

BEST PLACES TO LIVE

Money magazine's Best Places to Live in America 2006, population 300,000 or more: 1. Colorado Springs 2. Austin, Texas 3. Mesa, Ariz. 4. Raleigh, N.C. 5. San Diego 6. Virginia Beach, Va. 7. Omaha, Neb. 8. Columbus, Ohio 9. Wichita, Kan. 10. New York

http://money.cnn.com/magazines/moneymag/bplive/2006/top100/bigcities.html

Following are statistics for the month of March 2006 for Colorado Springs and surrounding areas (new and existing single family/patio homes):

- Listings Sold: 962
- Average Sale Price: $253,802
- Median Sale Price: $213,902
- Average days on market: 70

- Average List Price: $339,750
- Median List Price: $214,925

- Total Active Listings: 3,632
- New Listings for March: 1,817

Continued job growth and a healthy local economy should keep home construction and sales stong in 2006.

The Springs economy should also get a boost later this year from the expected arrival of more than 10,000 additional troops at Fort Carson - the result of military unit realignments that are part of last year's base-closing process.

The Springs area should see construction begin on more than 5,000 homes this year, which is slightly less than 2005, but still very strong when compared with 10 to 15 years ago.

If you would like additional information on the Colorado Springs area, or if you are in the market to buy or sell a home, please call 719-649-4762 and ask for Roxann. I'd be happy to assist you.

ZIP Codes: 80903, 80904, 80906, 80907, 80908, 80915, 80916, 80917, 80918, 80919, 80920, 80921, 80922, 80831

Location Characteristics: Colorado Springs is east of the Rocky Mountains, at the foot of majestic Pikes Peak.

It is Colorado's second largest city. It boasts moderate temperatures throughout the year because it is protected by the Rocky Mountains to the west and Monument Divide to the north.

Colorado Springs is proud to be the home of the U.S. Air Force Academy, Fort Carson, Peterson Air Force Base, and NORAD.

Rental Woes

Owning a home is best investment, new book explains By MEG RICHARDS
THE ASSOCIATED PRESS

Renting a home is definitely not the route to wealth. In fact, statistics from the Federal Reserve indicate it's a good way to stay broke.

According to data collected in 2003, the average American renter's net worth amounted to less than $5,000, while homeowners were worth almost $172,000 - making them 34 times richer.

That's but one of the many fun facts financial adviser and author David Bach offers up in his upcoming book, "The Automatic Millionaire Homeowner." When you add up all the evidence, Bach says, homeownership is as close to a financial no-brainer as you can get.

"The argument is that it's cheaper to rent. That's the whole argument, and it's simply not true,"Bach said."As long as you're alive you have to live somewhere. The question is, will you pay someone else to live there, and make that person rich, or will you pay yourself to live there and make yourself rich? "To drive home the point, Bach offers the following example: Suppose you rent a house for $1,500 a month, and you stay there for 30 years. If the landlord raises the rent 5 percent a year, you'll wind up paying almost $1.2 million in rent and have absolutely nothing to show for it.

If you bought the house for $200,000, however, your monthly costs including mortgage, taxes and maintenance would add up to about the same as your rent but wouldn't rise at the same rate. Best of all, the house likely will increase in value. If it rose 6 percent annually (just less than the national average), your home would be worth $1.1 million in 30 years.

While owing lots of money on a mortgage may seem like a scary burden, it's important to remember that the payments you make each month will actually serve to increase your net worth. By decreasing your loan balance, you're building equity for yourself. The longer you own your home, the more equity you build and the richer you get, Bach says.

Another incentive to buy is the simple fact that there are no tax breaks for renting. Among the perks enjoyed by homeowners is a little thing called the mortgage-interest deduction, which allows you to deduct from your taxable income the interest charges o n the first $1 million of your mortgage.

This means in the early years of your mortgage, when the bulk of your monthly payment is going toward interest charges, you can write off almost all of your housing costs, Bach says. On top of that, if your home increases in value and you decide to sell after a couple years, you won't owe any capital-gains taxes on the first $250,000 in profit - the first $500,000 if you' re married.

Of course, the real estate market has been hot lately, and depending on where you live, it might seem like a crazy time to jump in. If you're anxious about the real estate bubble, take heart: Homeownership is not a fad. Of course, no investment goes up in a straight line forever, and real estate prices are cyclical. But for those in it for the long haul, homeownership has proven to be an exceptional investment.

"There truly is a separation between rich and poor in America, and it's getting bigger all the time, and it really comes down to real estate. The longer you rent, the harder it is to catch up. It's like an escalator going in reverse," Bach said.

"It's impossible to time the real estate market. It's time in the real estate market that matters."