Opening up the most recent issue of " Smart Money " magazine (published by the Wall Street Journal ), a cover blurb about home prices.... Opening up the most recent issue of "Smart Money" magazine (published by the Wall Street Journal), a cover blurb about home prices in 148 cities caught my eye. The story divided these cities into three categories: "Fairly Valued, Overvalued and Undervalued."

It seems I knew which cities would fall into their respective categories without looking. Boston, San Francisco and Las Vegas: overvalued. Pittsburgh: Undervalued. Sure enough, Pittsburgh made the top of the undervalued list and the aforementioned cities plus, LA, New York, Portland, Oregon and Portland, Maine made the list of overvalued cities. Of course the bulk are valued just right: Cleveland, Chicago, Philadelphia, Atlanta, Houston and Syracuse.

A recent article in the New York Times also confirmed something else I’ve suspected was true. New York, San Francisco, Boston and other long-popular cities have become so expensive that people are looking for new cities to call home.

I receive calls on a regular basis from New Yorkers who, having seen an ad for a cheap house, ask the simple question “how far is Pittsburgh from New York?” Others call excited about the housing stock available here at what seem to them like unbelievable prices.

According to the article, in 2004 a half million people left California for other parts of the United States, while fewer than 400,000 moved there. The research firm Economy.com estimates the net outflow has risen fivefold since 2001. That firm also estimates the number of people leaving New York, Boston and Washington is also on the increase. For example, net migration to Philadelphia more than doubled between 2001 and 2004. In fact, twice as many New Yorkers moved to Philadelphia as vice-versa.

A new book by Forbes magazine publisher Rich Karlgaard helps to explain this phenomena. Calling Pittsburgh a “Bohemian Bargain,” Karlgaard notes that the cost-of-living gap between urban coastal cities and the heartland of the country is now the widest it has been since the Great Depression.

Looking through a recent issue of New York magazine, it’s easy to see what makes Pittsburgh attractive. One advertisement for condo’s in a new building advertise one bedroom units starting at $555,000 and two bedroom units starting at $1,105,000. These aren’t the most luxurious of units either. The same issue notes the most expensive rental in Manhattan is $55,000 a month.

Of course outward movement from big, pricey cities won’t necessarily translate into big increases in Pittsburgh. None-the-less, this is Pittsburgh’s opportunity. It’s clear that people are looking elsewhere. They’re looking for quality of life and a low cost of living. I am confident not only that Pittsburgh can provide that, but that many have already found it in Pittsburgh.