The Census Bureau released its annual report on income and poverty on Tuesday, showing that Plano, TX is the most affluent amongst cities with populations of 250,000 or more. It had the highest median household income of $84,492, up 10% from 2006, and the lowest poverty rate. San Jose came in second with a median income of only $76,963.

I grew up in a neighboring city to San Jose, CA so I have first hand experience of the difference in lifestyle between the No. 1 and 2 cities. San Jose and its neighboring suburbs are great cities, with plenty of places to go and things to do. San Francisco's Golden Gate Bridge, Fisherman's Wharf, and Alcatraz are only an hour drive up the peninsula. Lake Tahoe's beautiful blue shores in the summer or snow-covered peaks in the winter are only 3 hours North. The Santa Cruz beach boardwalk or Monterey Bay Aquarium and Cannery Row are only an hour South. If you feel like relaxing for a weekend, Napa's rolling hills and vineyards with award winning wineries and Bed & Breakfast resorts will do the trick. In addition, San Jose is the hub for Silicon Valley's brightest minds and start-ups during the dot-com boom.  Jobs and opportunities brought lots of talent into the area. In addition, the Bay Area has one of the most diverse populations in the country with plenty of multi-cultural foods and restaurants. However, like any place in CA, its great only if you were able to establish yourself before the real estate got ridiculously expensive. I can still remember when an average home was in the mid $300's in 2001. This is affordable considering the 1% property tax rates in CA. However, prices spiked after 2001 with average home prices hovering in the high $600's. Unlike Texas, property taxes in CA are not the major source of income for schools. And even if it is, the 1% property taxes (assessed at time of purchase) are hardly enough to adequately provide for the schools since the taxes are frozen and are not reassessed every year based on market price. Schools are understaffed and under funded, with 30+ class sizes, inadequate school material, and canceled educational programs. School districts that are considered "good" are not easily affordable by the average household because home cost $1M+ around those areas.  Some people opt to put their kids into private schools, paying over $1,000 per month per child. Despite the plentiful things to do and beautiful surroundings, the high cost of living makes it hard to enjoy life because people are busy chasing the next dollar to pay for their mortgages and kid's education.

"Plano, TX" on the other hand, isn't nationally recognized like San Francisco or even San Jose, and doesn't have Napa, Santa Cruz, or Lake Tahoe. However, it does have affordable cost of living, great schools, and a great lifestyle. With the average median price of homes in the $225's, most residents are able to own a home and afford a higher quality of life.  In addition to the affordable real estate, neighborhoods are focused around children and family with tight communities and friendly neighbors. The school systems such as Plano ISD, Frisco ISD, Allen ISD and surrounding areas are top notch with a multitude of local and national recognition and awards. Small class sizes and ample teachers and staff provide a much better education for children. There are plenty of jobs for residents, with Plano being home to corporate headquarters such as Frito-Lay, JC Penney, EDS, and Perot Systems. Fortune Magazine reports twenty-two Forbes 500 companies are headquartered in the Dallas-Fort Worth area including Exxon, J.C. Penney, EDS, Kimberly-Clark, Texas Instruments, Tandy, and CompUSA. From a macroscopic level, the Texas economy is a bustling epicenter of growth. In 2008, Texas surpassed New York as home to the most Fortune 500 companies in the latest list compiled by Fortune magazine. The Lone Star now boasts 58 headquarters, three more than New York, the previous No.1, and California, with 52. Texas ranked No. 2 overall in the nation for Best States for Businesses in 2007 by CNBC.

So, while San Jose may have better weather and more things to do locally, I am convinced that living in Plano or surrounding suburbs is worth it.  You have better schools for your kids, no state income tax so you take home more, lower mortgages, better communities, and a better quality of life. With all the wealth you are building by living in Plano (according to study by CNNMoney), you can visit San Francisco, Lake Tahoe, or Napa anytime you want, and still have plenty left over to enjoy life!

Content by Janus Real Estate Group. All rights reserved. Copyright 2008.