9 Major US Cities Where Buying a Home Is Surprisingly Cheap
It’s no surprise that the housing market has been very difficult for many Americans — buyers and sellers alike. With inflation, high cost of living, soaring rates and lack of inventory — partly due to the “lock-in” effect of owners not wanting to let go of the lower rates they secured a few years back — many consumers have been left on the sidelines.
Find Out: 8 Places Where Houses Are Suddenly Major Bargains
Read Next: 4 Genius Things All Wealthy People Do With Their Money
Yet, it’s not all doom and gloom, as a new National Business Capital report, “These 10 Places to Buy a Home in 2024 Are More Affordable Than You Might Think,” showed. Indeed, the report found that while prices remain high, some places are “surprisingly affordable,” contrary to popular belief.
Here are some details on what the report found, as well as some cities where homes are cheaper than you might think.
Report: Where Is It Affordable To Buy a Home?
The report found that while many vacation spots and pandemic boomtowns in the Sun Belt aren’t as cheap as they used to be, they are still affordable.
“The key word here is ‘relatively,'” said Chris Motola, special projects editor at National Business Capital. “These locations have built up inventory over the last few years at the same time that demand is beginning to slow, so they’re beginning to cool off a bit. Ironically, right now it’s the big cities — the cities people were fleeing during the pandemic — that are experiencing the biggest affordability problems.”
What’s more, despite recent explosive growth, there were no Sunshine State cities in the list of the top 10 most expensive places, according to the report.
“‘Everyone’s moving to Florida’ has been a meme the past few years, and while it’s true that that region is experiencing growing pains and is nowhere near as inexpensive as it used to be, it’s got a long way to go before it reaches California, Boston or New York City levels,” Motola said.
Check Out: Housing Market 2024: Home Prices Are Plummeting in 10 Formerly Overpriced Housing Markets
He added that there is a ton of building going on in Florida, which takes pressure off prices, yet home insurance is probably the biggest point of concern for Florida homeowners at this time.
Finally, another surprising finding is that wealthy suburbs and small elite cities are often cheaper than their big-city neighbors.
Motola said that a big metric used in the report was home pricing relative to local incomes. “If a metropolitan statistical area is building housing which locals can’t afford, or not building at all, that’s not a sustainable system,” he said.
“Another factor is regional price parity, which measures expenses relative to the national average. They’re often cheaper in these suburbs than in the big cities, despite their reputations,” Motola explained.
Cities Where It’s Cheaper Than You Might Think To Buy a Home
Here are some of the cities that are cheaper than you might think, according to the report.
Miami-Fort Lauderdale-Pompano Beach, Florida
Median house cost: $429,800
According to Motola, buying power in the Miami area has held up relatively well to inflation, and while homes and property taxes are high, they aren’t as high as they are in many of the places from which people are relocating to Miami.
Salinas, California
Median house cost: $732,500
While prices are still high, the fact that the city has been building more homes in recent years — which is rare in California — should help relieve some pressure on prices in the near future, Motola said.
Washington, D.C./Arlington, Virginia/Alexandria, Virginia
Median house cost: $553,100
While the Beltway area is expensive in raw terms, it’s actually not as outrageously priced relative to local incomes as you might expect, Motola said.
“Salaries aren’t quite keeping up with housing costs, but they’re holding up better than in many other metros,” Motola added.
Las Vegas-Henderson-Paradise, Nevada
Median house cost: $432,200
“Las Vegas got hammered pretty badly during the pandemic, and housing is expensive relative to local salaries,” Motola said. However, it’s still a relatively cheap place to live in terms of regional price parity and property taxes, he added.
“If you’re bringing a bigger salary in from elsewhere, it’s not bad at all,” he explained.
Bridgeport-Stamford-Norwalk, Connecticut
Median house cost: $536,000
Fairfield County, Connecticut, is generally thought of as one of the most wealthy and expensive parts of the country, according to Motola.
The area is not cheap by any means, comprising very tony locales, such as New Canaan, Greenwich, North Stamford, Rowayton and Westport. “But its housing costs and average expenses aren’t as out of sync with local salaries as a lot of other areas, including nearby New York City,” Motola said.
Some of the Cheapest Cities To Buy a Home
On the other hand, here are some of the cheapest cities to buy a house, according to the report.
Evansville, Indiana
Median house cost: $200,000
The report found that when it comes to affordability in cities with populations of more than 300,000, Evansville is “as good as it gets.” In addition, its closeness to Kentucky and Illinois “has made it an economic hub in Southwestern Indiana,” according to the report.
Huntington-Ashland, West Virginia, Kentucky, Ohio
Median house cost: $155,200
This area, which was once a steel manufacturing hub, has since pivoted to biotech and services, the report noted. It also boasts low property taxes and low monthly expenditures.
Little Rock-North Little Rock-Conway, Arkansas
Median house cost: $200,000
At $200,000, homes in this region cost “3.3 times the typical household income,” according to the report. Additionally, salaries have mostly held up in this region and the city also has a low cost of living, the report noted.
Brownsville-Harlingen, Texas
Median house cost: $133,400
“While this border corridor near the Gulf Coast has been growing, it hasn’t seen the same level of explosive, wealth-generating growth as many other Texas metros,” according to the report.
Housing and cost of living are cheap, but the property taxes are decently high, the report noted.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 9 Major US Cities Where Buying a Home Is Surprisingly Cheap
