Millions of Americans desperate to find an affordable home still have hope if they are willing to move to one of a handful of markets, according to research from RealtyHop.
Property values in many places have surged in recent years, and they remain elevated despite a cooling trend over the past year. Those buying a home in 68 big cities have to spend more than 30% of their income on housing costs, RealtyHop says.
However, price growth has been more restrained in a few places. In these markets, homeowners spend less than $1,000 per month on mortgage payments and property taxes.
Following are the most affordable housing markets in America.
5. Fort Wayne, Indiana
Homeownership burden in this city: 22.95% of the median household income is spent on mortgage payments and property taxes for a median-priced home.
Median home price in this city as of March 2023: $209,950
Bargain hunters should give Fort Wayne a close look. Indiana’s second-largest city finished at No. 1 among the “The 10 Cheapest Places to Live in America.”
4. St. Louis
Homeownership burden in this city: 21.99% of the median household income is spent on mortgage payments and property taxes for a median-priced home.
Median home price in this city as of March 2023: $174,900
St. Louis can be a great choice for young families hoping to find an affordable place to make a start. Missouri’s biggest metro is one of “The 10 Best Cities for First-Time Homebuyers in 2023.”
3. Cleveland
Homeownership burden in this city: 21.57% of the median household income is spent on mortgage payments and property taxes for a median-priced home.
Median home price in this city as of March 2023: $109,000
Not only are Cleveland homes affordable, but people really love them. Residents who purchase a home stay there an average of 17.1 years, making the Ohio city one of the “5 Places Where Homeowners Really Stay Put.”
2. Wichita, Kansas
Homeownership burden in this city: 18.73% of the median household income is spent on mortgage payments and property taxes for a median-priced home.
Median home price in this city as of March 2023: $170,000
For many buyers, Wichita offers the best of both worlds: affordable homes that also are spacious. The city in south-central Kansas was featured in the story “Which U.S. Cities Have the Largest Houses?”
1. Detroit
Homeownership burden in this city: 17.01% of the median household income is spent on mortgage payments and property taxes for a median-priced home.
Median home price in this city as of March 2023: $85,000
If you want a more modest, affordable place to live, Detroit can be a good option for buying a home. Michigan is one of the “10 States With the Smallest Homes.”