Sunday, Jun 18, 2023 - 12:15 AM
Before the pandemic hit, the average U.S. home price was $313,000; this figure has now risen by
To $436,800 in today's dollars. Mortgage rates and home prices are increasing.
Home ownership has become an unattainable dream for many
Visual Capitalist Avery Koop
The chart below shows the results.
In some cities, buying a home is an easier goal to achieve.
This study by
The most affordable U.S. cities for homebuyers are ranked. The ranking is based on a 100-point scale. The higher the score, the more affordable the city for homebuyers.
When it comes to affordability, this ranking takes into account much more than the price of a home. The overall affordability score for each city is calculated using 10 metrics that cover a range of important factors for homebuyers.
Take a look at each of the 10 categories to see how they were weighed and measured.
The most important metric to consider is the median home price divided by the median income of households in the area. This is called house affordability.
The availability of homes on the market, the average cost for homeowner's insurance and maintenance costs are all important factors to consider.
What are the most affordable cities in America for home buyers?
Take a look at 50 of the most affordable U.S. cities for homebuyers:
Palm Bay, FL
Grand Rapids (MI)
Cedar Rapids, IA
North Las Vegas, NV
Des Moines (IA)
Las Vegas, NV
Fort Smith, AR
Green Bay, WI
High Point, NC
Cape Coral, FL
Fort Wayne, IN
Here are some of the cities that scored the highest in the different categories.
Springfield, Illinois is the #1 city for housing affordability
Sunnyvale, CA is the #1 city for maintenance affordability.
Flint, MI is the #1 city for rent-to-price ratio.
Miami Beach, FL - #1 in Vacancy rate
Location, location, location
Narrowing the locations that are viable from a lifestyle perspective
You can also find out more about the following:
The first step to buying a home is to consider your financial situation. Popular suburbs and iconic hubs such as Los Angeles or NYC are attractive, but they often come at a high price or offer housing that does not fit your lifestyle.
Some of the most desirable cities can also be the least affordable. Flint, Michigan, the #1 city, is widely perceived as having problems with its water. Detroit (#4), Yuma, Arizona (9), or other places with high crime rates or limited economic opportunities are also included.
The majority of cities on the list are located in Michigan, Arizona and Ohio. Pittsburgh, Columbus and Philadelphia are all well-known cities that make the list of affordable big cities.
The ranking also includes a few ties, which makes for some interesting juxtapositions. Las Vegas, for example, is as affordable as Cleveland (#22). Take a look at other cities where homebuyers can find the same affordability:
Montgomery, Alabama (#1) and Flint, Michigan
Springfield, Illinois, and Palm Bay, Florida, (#9)
Buffalo, New York, and Cedar Rapids (#15).
Fayetteville and Des Moines in Iowa (#19).
Dayton, Ohio, and Erie Pennsylvania (#25).
Birmingham, Alabama, Louisville, Kentucky, Fort Smith, Arkansas, and Gilbert, Arizona
Indianapolis, Indiana, Joliet, Illinois, and Tuscaloosa (#45).
Home ownership rate
According to FRED, the share of U.S. homes that are owned by their owners is currently 66%. The trend is showing a general recovery after the sharp drop-off that occurred during pandemic. However, it will be some time before the U.S. figures reach pre-2020 levels. These affordable towns may offer a solution.