Housing

While home prices rise across the nation, prompting economists to worry about a "housing bubble," housing in the Augusta-Aiken area remains a relative bargain.

The Augusta area is one of only 15 markets in which home prices are considered "undervalued" relative to the prevailing income levels of its residents, according to a 2005 survey of 125 metro areas by Wellesley, Mass.-based Local Market Monitor for Consumer Reports magazine. Homes in the other 110 markets were considered either "fair value" or "overpriced."

Abundant land, labor and building materials help keep local real estate priced well below the national average. The median home sale in the Augusta area during 2005 was $125,685, according to the Greater Augusta Association of Realtors, compared with the $219,400 national median reported by the National Association of Realtors.

Despite rising mortgage rates,

strong demand for housing is keeping area builders busy. New home construction, as measured by single-family permits filed with Richmond, Columbia and Aiken counties, was up 10.6 percent as of the second week of November 2005 compared with the same period last year.

Many of the area's homes are fairly new; census figures show more than 24 percent of the market's housing was built after 1990.

Most of the area's growth is in Aiken and Columbia counties, though the more urbanized Richmond County has growth potential in undeveloped areas in the south region.

Many families are drawn to Columbia County for its schools, often considered among Georgia's best. Aiken appeals to many retirees, most of whom are from cold-weather, high-cost areas in the Northeast.

Though costs vary widely according to house style and community, Columbia County has the most expensive homes in the area, with an average price of $186,883. The average for the entire market is $144,968, according to the Greater Augusta Association of Realtors.

Property taxes can vary greatly. In Richmond County, for example, a homeowner could pay from less than $1,000 to more than $2,000 in annual taxes for a $100,000 home.

Both Fort Gordon and the Medical College of Georgia contribute to a steady stream of renters year-round.

Ranging from townhomes to downtown lofts, rent for a two-bedroom, two-bathroom apartment that is about 1,000 square feet runs roughly $545 to $900 per month.