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Top 10 Reasonably Priced Cities in 2024 to Purchase a House Getty
Developing money is one of the primary motivations for property purchases. “Why pay someone else’s mortgage and contribute to their equity (via rent) when you can spend the same amount of money or less and benefit from the same outcomes?” is the typical line of reasoning.”
However, if you live in an expensive place, your money may be rapidly consumed by a mortgage that acts like a tapeworm, draining your savings account until it is empty. This is what’s known as “house poor,” to put it frankly.
If you reside in a costly metropolis, you can choose to relocate to greener—and less expensive—pastures instead of purchasing a tiny house. Cheaper doesn’t always equal worse, after all.
Learn more about the affordability of homes here:
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Forbes Advisor determined the top 10 most affordable places for homebuyers by examining 100 metro regions with a population of at least 100,000. In order to determine affordability, we examined a number of variables, such as the city’s median income, average home price, and median real estate taxes.
“I grinned when I saw the list. Undervalued markets are perfectly exemplified by this, according to Realtor.com senior economist George Ratiu. “These cities have the potential for long-term economic growth; they are not boom-and-bust cities.”
- Michigan’s Detroit
median income
36,000.
2023 median listing price for a home
$270,000
Real estate tax median
$1,268
State income tax average
4.25%
monthly costs for utilities
$290
Cost of food annually
$8,277
The most economical spots to buy a house are all in the Motor City. Although the median pay in these affordable locations is among the lowest, house prices are also among the lowest. It is astonishingly low that Detroit’s typical earnings will pay off their mortgage with only 6% of their monthly salary.
Despite several significant setbacks over the years, including a collapsing auto industry, suburban exodus driven by racism, and abandoned neighborhoods brought on by the Great Recession, Detroit has been experiencing growth in recent years.
The headquarters of significant businesses including Quicken Loans, Ally Financial, and General Motors are located in Detroit. There is also a presence of big tech, such as LinkedIn, Google, and Microsoft. The most recent announcement was made by Apple, which stated it will collaborate with Michigan State University to establish its first developer academy in North America in Detroit.
“Detroit and its environs have always been fantastic places to work, live, and have fun. The firm that created Central Park in New York City also designed Belle Isle Park, according to Randolph Barker, president of the Detroit Association of Realtors. Our varied menu selections showcase the city’s eclectic culture. The food in Mexicantown, Greektown, Midtown, Corktown, and Downtown is some of the greatest I’ve ever had.
- Ohio’s Cleveland
median income
47,268 dollars
2023 median listing price for a home
$248,480
The average annual real estate tax
$1,508
State income tax average
3.84%
monthly costs for utilities
$187
Cost of food annually
$7,682
Cleveland is a youthful city that is also reasonably priced; the median age is roughly 36, which is slightly lower than the national median. Cleveland’s vibrancy is what sets it apart. Situated on Lake Erie, the area is popular for boat parties and water activities.
The city and the beaches around Lake Erie are surrounded by a vast network of environmental preserves, which is ideal for those who enjoy the outdoors. The Cleveland Metroparks system includes picnic spots, nature centers, golf courses, fishing sites, and more than 300 miles of paths for bicyclists, walkers, and horseback riders.
But it’s not all fun and games—Cleveland’s economy is strong and expanding. The Cleveland Innovation District, a new public-private collaboration involving the state of Ohio, three hospitals, and two colleges, is expected to generate 20,000 employment over the course of the next ten years.
Senior manager of communications and media relations for the Greater Cleveland Partnership Dena Cipriano claims that “Cleveland was not as impacted by the recession caused by the pandemic as the rest of the country.” “The unemployment rate in the Cleveland metro area is lower than the national average. And among all the main metro areas affected by the epidemic, we have had the second-highest surge in the influx of IT workers.
- Ohio’s Toledo
median income
$37,220
2023 median listing price for a home
$239,900
The average annual real estate tax
$1,541
State income tax average
3.84%
monthly costs for utilities
$201
Cost of food annually
$7,682
Toledo is situated in a strategic location. Situated at the westernmost point of Lake Erie, the distance to Detroit is one hour by car, to Cleveland it is two hours, and to Chicago it takes approximately four hours.
Toledo, a rust belt city, has made progress toward a brighter future in recent years despite having a struggling economy since the 1980s.
The Federal Reserve Bank of Cleveland reported that Toledo had the highest rate of increase in construction jobs (6.4% between March 2018 and 2019). Furthermore, the research notes that employment in the financial activities sector “grew faster in the metro area (at 1.4%) than it did in Ohio (0.6%) and in the United States (1.3%).”
A remarkable concentration of potentially highly trained individuals may be found within 60 miles of Toledo, which is home to both Bowling Green University and the University of Toledo, as well as almost three dozen other universities and higher education institutions.
The Toledo Clinic, Owens Corning, and HCR Manor Care are among the biggest employers in Toledo.
- Tennessee’s Memphis
median income
$38,949
2023 median listing price for a home
$327,275
The average annual real estate tax
$1,658
State income tax average
1.0%
monthly costs for utilities
$158
Cost of food annually
$7,616
There are roughly 650,000 people living in Memphis, with a median age of about 34. This city in the Mississippi Delta may be ready for a tech boom, in fact.
According to Anthony Young, capital executive in residence at Epicenter, a non-profit that promotes entrepreneurship in the greater Memphis area, Memphis is leading other cities in terms of Black-owned businesses’ access to venture capital, as he recently told the publication AfroTech. A Black entrepreneur is involved in 16% of early-stage companies that access venture capital (VC) in the Memphis area (about 1% of all companies), and 13% of startup capital invested has gone to companies with Black founders.
You can invest in Memphis. When it comes to capital investments, Memphis performs better than our national rivals, especially when examining the proportion of funds invested in Black tech firms and the percentage of Black-led enterprises that receive funding, according to Young.
The three biggest employers in the area are FedEx, the state of Tennessee, and the federal government, in addition to a burgeoning tech sector. The Federal Reserve reports that from 2018 to 2019, Memphis’s per capita income increased by 9.88%.
Memphis has a rich artistic history that rivals that of any other city. Graceland is located here, and it’s nearly synonymous with music—blues, rock ‘n’ roll, and Elvis. Memphis’ reputation as “the cradle of American music” is understandable.
- Maryland’s Baltimore
median income
$50,108
2023 median listing price for a home
$365,875
The average annual real estate tax
$2,799
State income tax average
4.41%
monthly costs for utilities
$241
Cost of food annually
$8,434
High-profile employers in Baltimore include Northrop Grumman, one of the biggest producers of military technology and weaponry worldwide, and John Hopkins University. More over 18% of workers in Baltimore are employed by the federal (145,695), state (99,127), or local (245,253) governments, demonstrating the importance of the government to the city’s economy.
It’s also in a wonderful location—Washington, D.C. is less than an hour away by car, and Baltimore residents can work in the more costly city by taking the MARC Penn line from Penn Station. not having to pay a high D.C. house prices—in a just eight railroad stops.
Regarding traveling from Baltimore to Washington, D.C., one Redditor said as follows:
“I’ve been traveling to and from D.C. from Baltimore. (inexplicably, Dupont Circle) for more than eight years. Advantages: You can live in Baltimore, it’s less expensive than D.C., and when it functions well, it can be calming. Cons: Extremely time-consuming, yet worthwhile if you can organize your schedule well. Try it for a few months and see if you can handle it, is my advice.
- New York’s Rochester
median income
41,646
2023 median listing price for a home
$274,338
The average annual real estate tax
$2,625
State income tax average
6%
monthly costs for utilities
$197
Cost of food annually
$8,966
Although Rochester was included in our ranking of the most cheap cities, it may soon become somewhat less so. Rochester was one of the metro cities (with a population of at least 1 million in 2020) that witnessed the most increases in return on investment (ROI) for sellers in the US, up by 49.9%, according to a recent analysis by real estate analytics company ATTOM Data Solutions.
Many housing specialists have also been keeping an eye on it as individuals move out of Manhattan in search of greater space and cheaper housing.
According to Realtor.com’s Ratiu, Rochester “made our list of top housing markets from 2019.” There’s a lot of New York City influence here. Many people in their mid-20s relocate to New York to begin their professions; ten years later, when housing becomes scarce, they move to towns like Rochester.
The main employer in the city is the University of Rochester and its medical complex, which employs 32,000 people.
- Wisconsin’s Milwaukee
median income
41,166
2023 median listing price for a home
$239,900
The average annual real estate tax
$3,122
State income tax average
5.78%
monthly costs for utilities
$202
Cost of food annually
$7,682
Milwaukee, a city on the western edge of Lake Michigan, is most recognized for its long history of brewing beer. In actuality, breweries existed in Milwaukee long before the city was established. Milwaukee is home to some of the oldest American beer companies, such as Schlitz, Pabst, and Miller. The Brewers, the baseball franchise of the city, even honors its heritage.
With over 30 breweries in the region, Milwaukee still boasts a thriving beer scene, but these days, the industry that is driving the city’s economy is health care. Milwaukee has a population of around 600,000, and its top three employers are in the health industry: Froedtert Health (10,900), Ascension Wisconsin (15,500), and Aurora Health Care (25,900).
According to data from Apartment List, Milwaukee has grown in popularity as a destination for people escaping more expensive metro regions, such as Chicago. The median home listing price in Milwaukee, which is located little over 90 miles north of Chicago, is nearly half that of Chicago, which was $370,000 in 2020.
- Alabama’s Montgomery
median income
$39,505
2023 median listing price for a home
$299,224
The average annual real estate tax
$512
State income tax average
3.67%
monthly costs for utilities
$238
Cost of food annually
$7,616
The lowest median yearly real estate taxes on this list are found in Montgomery, Alabama, where they are approximately $512 annually. Montgomery not only has excellent tax rates but also provides excellent job prospects.
Ratiu says that although Montgomery may go unnoticed, that may be a mistake. “As a whole, Alabama’s aerospace industry is enormous.”
The U.S. Aerospace Institute, Boeing, Northrop Grumman, and other major aerospace companies are based in Montgomery. Raytheon, Lockheed Martin, Leidos, Department of Defense.
In fact, in 2019 Lockheed Martin began construction on a 225,000-square-foot complex. The top aerospace company fulfilled its pledge to bring 224 full-time employment in more than five years when it made its last investment in the region in 2014. That was in 2014.
Another significant business in Montgomery is the automotive sector, where Hyundai anticipates adding 200 employment by 2021.
Smaller markets are ready for expansion, according to Ratiu, and what’s happening in Montgomery is representative of what’s transpired over the past fifteen years. “It is a location where a young family can acquire wealth, purchase a home, and make a living.”
- New York’s Buffalo
median income
41,036
2023 median listing price for a home
$277,697
The average annual real estate tax
$1,601
State income tax average
6%
monthly costs for utilities
$194
Cost of food annually
$8,966
Over the past ten years, Buffalo has undergone a significant transition, with new dining establishments, entertainment venues, events, and activities opening up every year. According to Amber Wesser, a real estate broker at Hunt Real Estate in Buffalo, this convergence of businesses and community events has brought a lot of excitement and vitality to the city, which is typically known for its harsh winters.
Wesser claims, “For a long time, when people thought of New York, they would think of New York City, and that just isn’t us.” We provide a significantly lower pricing for a house sale or rental. We also have the greatest meals of all kinds, but I could be prejudiced.
Buffalo, the largest city in upstate New York, is located roughly seven hours northwest of Manhattan; nevertheless, as Wesser points out, it is not at all like New York City. With a population of less than 300,000, Buffalo is a reasonably priced alternative to big city living, even though it formerly had the highest concentration of millionaires per person on the planet.
Realtor.com data indicates that the median listing price of a single-family home in Buffalo in 2020 was only $184,000. This is significantly less than the $340,000 national median.
- Kansas City, Kansas
median income
$37,861
2023 median listing price for a home
$453,363
The average annual real estate tax
$1,663
State income tax average
4.68%
monthly costs for utilities
$271
Cost of food annually
$7,682
The Midwest offers some of the most affordable places for first-time homebuyers, and Kansas City is undoubtedly one of those places. This could be a fantastic neighborhood for those on a tight budget, with median listing prices under $200,000.
And even better if you work in the medical profession. In Kansas City, the largest industry (not to be confused with Kansas City, Missouri) is health care.
Over 10,000 workers are employed by the University of Kansas Medical Center and the University of Kansas Hospital together.
Transportation and manufacturing are other important industry here due to the area’s location and size.
Honorable Mentions for Affordable Cities
Iowa’s Des Moines
North Carolina’s Fayetteville
Texas’s Laredo
Indiana’s Fort Wayne
Missouri’s Saint Louis
Texas’s Fort Worth
Indiana’s Indianapolis
Florida’s Jacksonville
Kansas’s Wichita
Ohio’s Columbus
Where in the United States Can I Find Cheap Housing?
When looking for inexpensive housing, there are a number of things to take into account. Real estate taxes and the cost of living in an area are two factors. To save money up front, you can also look into first-time homebuyer loans and programs.
Mid-size Metros Give You a Chance at Homeownership Even Though They May Not Be Glamorous
While many people concentrate on the big cities, such as New York or Washington, D.C., mid-sized cities are foolishly disregarded when it comes to obtaining both affordability and a robust economy, according to Ratiu.
Those who are interested in homeownership can purchase a home and have money left over for retirement savings, the kids’ college funds, or even simply basic health insurance, as opposed to paying half or more of their earnings on rent.
Some people may be able to cross off frame-worthy aspirations from their wish lists with the additional money. You can obtain all of this by relocating to a region that is just less expensive (we see you, Bora Bora).
Moving is obviously an expensive undertaking. Furthermore, not everyone has the luxury of uprooting their life and relocating. But as more people choose to work from home, relocation has become a more practical choice.