As home prices continue to rise, a new home in a major city may seem more like a myth than a reality.
However, there are 15 major US cities where starter homes can be found for less than $230,000, on average, According to a recent analysis Through Five Star Painting Services Company. This is significantly less than $431,000, which is the median home price in the United States. According to the latest US Census Bureau data.
Starter homes typically refer to relatively modest homes that are affordable for first-time homebuyers, or more generally, low-income homebuyers. In this context, the study defines a starter home as a single-family home, townhouse or apartment that is 1,850 square feet or less. Mobile homes, lots, and multi-family home listings were excluded.
Assuming a 10% down payment, buyers would need an income of about $56,500, excluding other debt, to purchase a $230,000 home, according to online real estate brokerage Zillow. Affordability calculator. Of course, home prices vary by region, so buyers who earn less can afford to purchase a new home in certain places.
Based on Redfin real estate listings for the 50 largest U.S. cities, the following 15 markets had the lowest median starting home price, as of August 2023.
- Detroit: $83,500
- cleveland: $109,650
- Memphis, Tennessee: $142,450
- milwaukee: $142,900
- Saint Louis: $149,500
- Hartford, Connecticut: $164,474
- Birmingham, Alabama: $166,055
- Buffalo, New York: $179,900
- Kansas City (Missouri): $187,950
- Louisville, Kentucky: $199,615
- Baltimore: $202,289
- Indianapolis: $211,517
- Pittsburgh: $214,589
- Cincinnati, Ohio: $219,900
- Oklahoma City: $227,705
The Detroit real estate market has… He recovered somewhat Since the city declared bankruptcy ten years ago, housing prices have remained well below the U.S. average.
A few reasons contribute to Detroit’s low home prices, including a low population and a relatively high number of distressed home sales, which is when an owner is forced to sell their home, usually because they can’t afford their mortgage payments.
Like Detroit, Cleveland is a Rust Belt city with… Long-term decline in population. As with most American cities in the past three years, home prices in Cleveland have risen It was on the riseBut it is still well below the American average.
In general, more affordable homes are found in small towns that are not major coastal centres. This includes Midwestern cities like Indianapolis, but also Southern cities like Birmingham, Alabama.
In contrast, starter homes in San Francisco cost an average of $999,000, according to the study, making it the least expensive place to become a homeowner. At this price, this home is by no means an entry-level home, since homebuyers earning a median U.S. income of $74,580 wouldn’t be able to afford it without significant cash savings.
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