But this is a tight-knit community bent on preserving the things that make First Addition a desirable place to live. Not only have residents worked with city officials to set up traffic-calming strategies, but they've fought for design guidelines that encourage new construction to keep the 'hood's cottagelike feel. You’ll still see houses sized appropriately for lots, jewel-box gardens winking from behind picket fences, and fir and cedar trees towering above narrow, villagey streets.

Location: on scenic Lake Oswego, 8 miles from Portland's city limits

Map it: Lake Oswego

Number of homes: 850

What $300,000 will buy you: not much—add $150K and you can shop for a two-bedroom fixer-upper.

Closest latte: Chuck's Pacific Coast Cookies and Coffee, on Fifth Street

For more info: geocities.com/firstadditionlo

photography: Charles Gullung The Lake Oswego Public Library

Homes: First Addition is lush, with trees, gardens, and plant-festooned front porches adding a layer of green to the even blocks of homes. There are roughly 850 houses here in many sizes and styles: matchbox-size cottages, Gothic Revival frame houses, bungalows with river-rock porch piers. Locals fought to pass an ordinance that limits new construction to 3,000 square feet. They cherish the alleys that keep garages and service calls to the rear of homes. They view their pathways as places, not simply ways to get to places.

People: "People around here are fanatics about daily coffee," says Lisa Shaw-Ryan, who moved to First Addition seven years ago and opened Chuck’s Pacific Coast Cookies and Coffee with her husband, Chuck. Residents are also obsessed with First Addition. "They're always talking about what makes this neighborhood great and what can make it even better." First Addition Neighbors (FAN) worked with city officials to create the FAN Plan in 1996 to preserve housing variety and affordability and maintain the small-town atmosphere.

Shops and Hangouts: First Addition is adjacent to Lake Oswego, a city of 35,000 residents, and all it has to offer—Meringue Boutique for women’s clothing; Graham's Books and Stationery for beautiful journals and bestsellers; and Clarke’s restaurant for seasonal cuisine. Also in the neighborhood are a public library, community center, post office, grocery store, and Lisa and Chuck's coffee shop.

Greenspace: Rossman Park is lovely, and includes a fun children's play structure. But the real outdoor treasure is 645-acre Tryon Creek State Park—canyons, ravines, 8 miles of hiking trails—just north of First Addition.

Cottage Twist: Lots of neighborhoods host tours of homes, but in the past First Addition has hosted its own Tree Walk, with stops to view 18 trees, including a 100-year-old sequoia.