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10 Most Affordable Cities for Home Buyers in the U.S.

Searching for an Affordable Home

The average home price in the U.S. has jumped by 40% since 2020, coming in at $436,800. However, you can get more bang for your buck if you buy a home in these ten affordable cities.

Just before the pandemic, the average home price in the U.S. was $313,000 — a figure that has since jumped by 40% to $436,800 today. As home prices and mortgage rates increase, home ownership is becoming an unrealistic dream for some.

However, there are some affordable U.S. cities where buying a house is much more attainable.

By looking at factors like the real estate tax rate, median home price appreciation, and cost of living, a study from WalletHub assessed the most affordable cities in the U.S. for home buyers. The scores in the ranking are out of 100 and the higher a score, the more affordable that city is.

Here are the 10 most affordable cities for home buyers in the U.S.:

  1. Montgomery, AL (Score: 71.4)
  2. Flint, MI (Score: 71.4)
  3. Toledo, OH (Score 71.0)
  4. Detroit, MI (Score: 70.9)
  5. Akron, OH (Score: 70.3)
  6. Warren, MI (Score: 70.2)
  7. Pittsburgh, PA (Score: 70.1)
  8. Yuma, AZ (Score 69.5)
  9. Springfield, IL (Score: 69.1)
  10. Palm Bay, FL (Score: 69.1) 

Related: The Rent-or-Buy Debate: Pros and Cons of Renting and Buying a Home

Narrowing down which locations are feasible from a lifestyle and financial standpoint is a critical first step in the home-buying process. Popular suburban communities and iconic hubs like Los Angeles or New York City hold great appeal, but these places command a higher price point or have housing stock that is incompatible with lifestyle needs.

On the flip side, some of the most affordable cities may have issues that negatively affect desirability. Flint, Michigan, for example, is still widely perceived to have issues with its drinking water. Other places are high in crime or have a narrow range of economic opportunities, like Detroit or Yuma.

Overall, the home ownership rate in the U.S. — the share of homes that are occupied by their owners — is currently 66%, according to FRED data. While the trend shows a general recovery from the steep drop off that occurred during the pandemic, there is a while to go before the U.S. reaches pre-2020 figures. Perhaps, these affordable towns could offer a solution.

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