## Affordable Housing Haven: 5 US Cities Where Homeownership is Still Possible
The national housing market is currently experiencing a challenging landscape, with a median home price of $425,000 and mortgage rates hovering around 6.82%. However, amidst this turbulent backdrop, several metro areas offer a glimmer of hope for prospective buyers seeking a more attainable homeownership experience.
According to Realtor.com’s September Housing Market Report, these cities stand out as havens of relative affordability:
1.
Pittsburgh, PA:
Leading the pack with a median list price of $245,000, Pittsburgh offers a significant reprieve from the national average.2.
Detroit, MI:
With a median list price of $277,000, Detroit presents a compelling option for those seeking a blend of affordability and urban living.3.
Buffalo, NY:
Closely trailing Detroit, Buffalo offers a median list price of $277,450, providing a comfortable entry point into the Northeast housing market.4.
Rochester, NY:
Coming in at $282,500, Rochester’s median list price remains notably lower than the national average, despite a 13% year-over-year increase.5.
St. Louis, MO:
With a median list price of $299,900, St. Louis rounds out the top five, offering a balance of affordability and Midwest charm.These Northeast and Midwest markets present a significant savings compared to the national median, making them attractive for buyers seeking a more budget-friendly homeownership journey.
Factors Contributing to Affordability:
Several factors contribute to the relative affordability of these cities, including:
*
Historical Economic Trends:
Over the past few decades, these cities have experienced a downward trend in job growth and population growth. This trend has put downward pressure on home prices, either causing them to fall or grow more slowly than the rest of the country.*
Supply-Demand Imbalance:
In Rochester, for instance, consistent underbuilding for the past 20 years has created a supply-demand imbalance, keeping prices lower than the national average.*
New York’s Tax Structure:
New York’s tax structure plays a role in moderating price increases in cities like Rochester and Buffalo. A higher percentage of a household’s housing budget goes towards taxes, leaving less to pay for the actual home.Changing Market Dynamics:
While affordability is a major draw, it’s important to note that these markets are not static. For example, Pittsburgh’s market has shifted from a seller’s market to a more neutral position, with inventory increasing and homes moving slower than in previous years.
Attracting Remote Workers and Flexible Buyers:
The affordability of these cities, coupled with the rise of remote work and flexible living arrangements, is attracting a new wave of buyers seeking a more attainable homeownership experience. These cities offer a unique blend of affordability, a sense of community, and access to a wide array of amenities, making them increasingly appealing for those seeking a more balanced lifestyle.
Looking Ahead:
While the national housing market continues to grapple with challenges, these cities offer a beacon of hope for those seeking a more affordable path to homeownership. As the market continues to evolve, it will be interesting to observe how these cities navigate changing dynamics and continue to offer a viable alternative for buyers seeking value and affordability.