• Serenbe (Palmetto, GA)
• Baldwin's Run (Camden, NJ)
• NorthWest Crossing (Bend, OR)
• Parkview Neighborhood (Redding, CA)
• Agritopia (Gilbert, AZ)
• Arbolera de Vida (Albuquerque, NM)
• Holiday Neighborhood (Boulder, CO)
• Westside (Kansas, MO)
• Noisette (North Charleston, SC)
• Prairie Crossing (Grayslake, IL)

» Take Video Tours of our Top 10 Neighborhoods for 2008

photography: Jerome Cookson

The best communities make us feel deep-down good. The kind of good that springs from inspiring design, from a sense of belonging, from taking care of ourselves and others, and from doing right by the environment. If you live in a cottage, you're probably already treading lightly on the planet. And if you live in a tight-knit community, chances are you belong.

The best communities care for the land as much as for the people, so we've focused on three land-use types: Greenfield, Infill, and Adaptive Reuse. Developers of new neighborhoods are preserving open space. They're adopting green building principles, turning to more natural storm-water management systems, and filling landscapes with native plants. And thanks to organic farms on shared community land, fresh food is more available than ever. That brings us back to the smiles: Great communities draw good neighbors.

Each year, we scour the country for the best cottage communities. Here's what we look for and the weight given each category:

HOMES 30%
Along with inspiring architecture, cottage-y scale, and relative affordability, we look for unifying design elements and walkable streets.

PEOPLE 30%
Behind every great neighborhood are people—either the residents who live there, those responsible for sparking a neighborhood comeback, or the designers and developers who had the vision to create something new.

BRIGHT IDEA 30%
Not only are the best communities fine places to live, but their innovations spur positive changes on a regional and even national level.

COTTAGE TWIST 10%
Every one of these areas offers something unique that brings a smile.