As seen in Money Magazine
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To find America's hottest places to live, we started with statistics on 271 U.S. cities provided to us by OnBoard LLC, a real estate information company. These cities in that list had the highest median household incomes in the nation and above average population growth.
Then, combining OnBoard's statistics with MOSAIC lifestyle segmentation data provided by Applied Geographic Solutions, we narrowed the list down to these 87 cities.
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First, we divided OnBoard's 271-city list into three regions: east, central and west. Those lists were sorted by population.
Then, based on careful examination of MOSAIC lifestyle segmentation data, we narrowed the list further by identifying those towns with demographics that closely mirrored that of the typical MONEY reader: college educated, working professional, well-above average median income.
In addition, the town had to be located no more than 60 miles from a major city. That ensures reasonable access art and culture resources. Only cities with median incomes above $50,000 a year and unemployment rates below the national average were included in our search.
We divided the resulting list of cities into three distinct regions and further divided it by population level -- over 100,000 population and under. We ranked each city within the resulting six lists based on population growth and what we call the "housing premium ratio," or the cost of residential real estate relative to local income levels. The formula ranks each city in terms of its category's norms. Many cities do so well on one measure such that they rank near the top despite a low score on the other.

