Though residential real estate prices in many large American cities have become incredibly expensive, real estate brokerage firm Redfin says home prices remain affordable in most cities. Redfin has released a report on how affordable home prices are in different US metros. They found that in 68 of the 88 most populous US metros, a family with median income can afford a median-priced house. Here we take a look at the top 10 most affordable housing markets in the United States.
Housing is still within the reach of families with median incomes in most markets across the country. Six of the most expensive housing markets are in California.
In the San Francisco Bay area, a “typical” family needs to triple their annual income to $265,000 to be able to afford a median-priced house there. The median household income in the Bay area is $92,714. As of July 2019, the sale price of a median home in San Francisco is $1.42 million.
Redfin ranked the US metro area based on the percentage of the city’s median household income needed to afford a median-priced house in the same city. The real estate brokerage firm calls a home affordable only if its cost is less than 30% of a family’s gross income. It means the affordability of the housing market depends on both the income of people and home prices.
These are the top 10 most affordable housing markets in the country, according to Redfin:
10- Oklahoma City, Oklahoma
The median cost of a house in Oklahoma City is $184,500. It means a family needs an annual income of $34,496 to buy a median home, which is only 62.8% of the city’s median household income of $54,946. People are already earning more than they need to afford a house. They would be paying $862.40 for housing, which includes mortgage as well as taxes.
9- Cleveland, Ohio
People living in places like Oklahoma City and Cleveland earn relatively lower than those in San Francisco and New York. But their expenses also tend to be a lot lower. The median household income in Cleveland is $52,446. A family needs an annual income of only $32,439 to afford a house. The median home prices in the city are $173,500.
8- Hartford, Connecticut
The capital city of Connecticut is the 8th most affordable housing market in the country. The median home prices in Hartford are $239,950, and the monthly cost of housing (mortgage + taxes) is $1,121.59. The city has median household income of $73,209, which is much higher than $44,864 needed to afford a house.
7- Camden, New Jersey
Camden has a median household income of $66,285. People living in the city need a household income of only $40,199 – just 60.6% of $66,285 – to be able to afford a median-priced home. Median housing cost in Camden is $215,000.
6- St Louis, Missouri
People living in St Louis need to earn only 60.2% of the local median household income to be able to afford a house. The median household income in St Louis is $59,046, which means anyone earning $35,553 can afford to buy a home. The median home price in St Louis is $190,150.
5- Pittsburgh, Pennsylvania
Pittsburgh is known as the steel city or the “City of Bridges.” The US News & World Report has named it among the best cities to retire in the country. If you live in the steel city, you need to earn only 60% of the median household income ($56,073) to be able to afford a house. If your household income is $33,655, it’s good enough to buy a house. The median home prices are $180,000.
4- Buffalo, New York
Two cities from the state of New York feature among the top 10 most affordable housing markets. In Buffalo, the median household income is $53,534 and the median home prices are $169,999. According to Redfin, people living in Buffalo need an annual household income of $31,785 (59.4% of $53,534) to afford a house. Buffalo is located close to the Niagara Falls.
3- Dayton, Ohio
Dayton, the hometown of the Wright brothers, has a population of about 150,000. A family living there would need an annual income of just $28,980 to buy a median-priced house. By comparison, the median household income in Dayton is $51,204. A typical house in the city costs $155,000.
2- Rochester, New York
Rochester sits on the southern shore of Lake Ontario. It has been ranked among the best cities to raise a family and cities with the highest number of female business owners. The median home price in Rochester is $162,000 and the median household income is $55,256. A family needs an annual income of only $30,289 to be able to afford a median-priced home in Rochester.
1- Detroit, Michigan
Detroit has been named the most affordable housing market for middle-class families in the United States. The median home price in the automobile city is $142,750, and the median household income is $56,339. You need to be earning only $26,690 – that’s 47.4% of $56,339 – to be able to afford a median-priced house.