Americas 10 Most Affordable Cities 2022
People who are in the market to purchase a home are constantly on the lookout for a good bargain. There's nothing novel about it. In today's tightening real estate market, however, a genuine deal is rarer and more precious than ever.
Mortgage payments have increased by hundreds, if not thousands, a month for many people due to the dramatic rise in interest rates. That's putting a strain on finances that were manageable a few months ago. Buyers are backing off of their commitments to buy, while sellers are lowering their prices to adapt to the changing market conditions or dropping out of the market entirely.
However, here's the catch: this downturn isn't affecting all areas equally. True, some urban centers still have bustling housing markets, with low prices that shield buyers from the impact of rising mortgage rates. According to Realtor.com, these are the most affordable cities at the current moment.
They are mostly smaller cities in the South, the Northeast, and the Upper Midwest that have had economic difficulties in recent years. Historically, these regions' prices have been lower than the national average, and they haven't experienced the huge COVID-19 price hikes of the past couple of years witnessed in red-hot areas like Phoenix, Boston, and Denver. Many are capitals or once-thriving industrial centers in the Rust Belt that witnessed population declines as factories shuttered and employment was moved elsewhere.
Each of these cities may not be a hub of innovation or one of the most stylish in the United States, but they nonetheless feature a surprising number of really lovely houses for very reasonable prices. All had median prices considerably lower than the national median house price of $427,250 in September.
The whole western half of the United States, including California, is not included on this list. Still, the housing market there is too expensive.
Findings were reached by analyzing listing data for the 100 biggest metropolitan areas in the United States, which was obtained at the beginning of October, to determine which had the cheapest median house price per square foot. To adjust for seasonal changes and regional variations in home sizes, we calculated prices per square foot instead of using a flat rate.
Cities and their surrounding communities (suburbs, villages, and even smaller cities) are all considered part of a metro.
Youngstown, OH
Coming in as the cheapest city in the nation. Located in the center of the Rust Belt, this area saw a drop in population beginning in the 1970s, just like many other boomtowns of the 19th and early 20th-century steel industry. As there were more houses on the market than potential purchasers, housing values dropped.
Upper Appalachia's cheap cost of living has become a self-perpetuating reality of life, according to Al Cerritelli, an agent with Howard Hanna Real Estate Services in the Youngstown suburb of Poland. That's a selling point for those relocating from more expensive regions in search of savings.
Cerritelli claims that visitors from other states often remark on the friendliness of locals, the lack of traffic, and the low cost of living.
Cerritelli claims that the last several weeks have been slow since interest rates have reached all-time highs. However, buyers respond positively to his fresh postings, opening and exploring his emails.
Over the course of the previous several months, prices in Youngstown have decreased by a little over 2% from their peak in August. Still, year-over-year price increases average roughly 12%.
Cerritelli claims that prices were artificially low prior to the pandemic, but that prices have since risen as remote employees hunt for cheaper locations to live and work from home.
He claims that "we had a lot of worth that was not being appreciated." Then, over the course of the last two years, we witnessed bidding wars, with purchasers rushing in and pushing one other aside to sign contracts.
Scranton, PA
Scranton is located about 2.5 hours north of Philadelphia and is the actual hometown of Vice President Joe Biden, who may be better known for his fictional city of Dunder Mifflin. It is also among the least expensive ski resorts in the United States.
The city has a long and illustrious history, beginning in the mid-19th century as a major hub for the coal industry and continuing into the 1880s when it was one of the first to have electric lights and, later, electric streetcars. Like many other industrial-age boomtowns, the population began to fall in the late 20th century. As a result, the city's core is thriving and the city itself is home to five institutions and universities.
Even with the year-over-year gains, housing prices in Scranton remain modest. The annual growth in price per square foot was 20%, which was much higher than the national market average of 12%. It's one of just four major cities here where prices have actually gone up somewhat rather than down.
Just under $225,000 will bring you a big, three-bedroom house from the 1940s with a modern kitchen.
Syracuse, NY
Because of its affordable housing options, the town of Syracuse, located in the state of New York's Central Region, was just recently recognized by Realtor.com as one of the top destinations for homebuyers from the middle class.
With prices on the increase, however, frugal shoppers may wish to speed up their search. About a ten percent increase was seen over the previous year.
Syracuse has the fewest available houses for sale in any major city on our list. However, data shows that sales of single-family houses have been slowing down in recent months, taking between 47 and 60 days over the previous four months despite the housing scarcity.
A three-bedroom brick ranch on a cul-de-sac near the heart of Syracuse's Washington Park area is currently on the market for $220,000. This location is just five minutes from the coast of Onondaga Lake.
Wichita, KS
The city of Wichita has earned the title of "Air Capital of the World," drawing visitors interested in aviation from all around the globe. Beechcraft, Cessna, Learjet, and Boeing's Stearman Aircraft are just a few of the technologically advanced manufacturers with headquarters in the region. Despite this, it provides a great quality of life for a reasonable price to its citizens, not to mention great BBQ.
There was a sit-in at the Dockum Drug Store in Wichita that is considered a watershed moment in the history of the American integration movement, which began that year.
Wichita's home listing price growth of 24% over the past year is the highest of any city on this list. Wichita's market reached an all-time high in September, although that of other major American cities had already bottomed out.
Looking for a bargain? This 2,500-square-foot home on almost a third of an acre is now on the market for $180,000 and features three bedrooms and two bathrooms. Or, for $265,000, they might consider this home with three bedrooms and two bathrooms.
Jackson, MS
The town of Jackson, Mississippi has been making headlines recently owing to its contaminated water supply. It appears that the real estate market is feeling the effects of the current crisis.
Due to a surge of homeowners eager to put their properties on the market, the availability of dwellings has increased. Homes for sale have increased by over half since this time last year.
In contrast, the quality of the drinking water has not had a negative impact on housing values. Jackson is one of four cities on our list where the present price is still the highest it has been in the prior 12 months. The average price per square foot has gone up by around 17% in the past year notwithstanding some monthly fluctuations.
The heavily Black urban center of the Jackson metropolitan area is the target of formal complaints to the United States Environmental Protection Agency, which has announced a civil rights investigation into the current water crisis. The city has a long history as a flashpoint in the struggle for civil rights.
Littlerock, AR
Real estate in the state capital of Arkansas remains cheap despite recent price increases. The city's low cost of living and substantial redevelopment of its historic core led to it being rated one of the best for middle-class purchasers.
In spite of a 15 percent increase in the cost per square foot, Little Rock real estate is selling rapidly.
A one-bedroom apartment in Little Rock, Arkansas, featuring floor-to-ceiling windows and a patio overlooking the Arkansas River and the downtown River Market District, may be purchased for roughly $300,000. A huge, four-bedroom house on a large lot in the forested suburbs further from downtown is also available for the same price.
Indianapolis, IN
Indianapolis, well known as the site of the Indy 500, has consistently ranked among the least expensive major U.S. cities. There are some of the nation's best deals on mansions to be found in the state capital.
In Indianapolis, the cost of living rose by 11% annually. However, they did fall from their May peak by around 2%.
For under $150,000, buyers may get a newly renovated three-bedroom home with a single bathroom. This three-bedroom, two-bathroom home is available for a $250,000 viewing. It has a total area of 2,000 square feet. (It is time to go going.)
Mcallen, TX
McAllen, a city of roughly 150,000 on the U.S. side of the Rio Grande Valley about an hour inland from the Gulf Coast, is home to some of the finest discounts available today.
Nearly 550 species of birds and over 300 kinds of butterflies draw tourists to the area. The shopping opportunities here attract people from both Canada and the United States.
The property market crisis hasn't affected home values in this major port city. They've been on the uptick since this time last year.
This brick home with three bedrooms is a great investment opportunity and is priced at $205,000. This brand-new three-bedroom house with a sizable backyard is listed for $285,000, perfect for those with a bit more disposable cash.
Columbia, SC
Columbia, South Carolina, is not just the state capital but also a major university center. To the Gamecocks! During the epidemic, it saw an influx of out-of-state purchasers in search of cheaper housing, lower taxes, and warmer temperatures.
Columbia's housing market has experienced the largest price drop among the listed metro regions, down about 5% from its June peak. Even still, the cost is almost 10% more than it was this time last year.
A three-bedroom, two-bathroom home in a Columbia suburb just north of the city center may be had for about $310,000.
Augusta, GA
Just an hour's drive southwest of Columbia, Augusta is where the prestigious Masters Golf Tournament takes place each April. A major technological, scientific, and military center may also be found there. Augusta is home to the state's only public medical school, Augusta University's Medical College of Georgia, and an Army base that serves as a cyber and e-warfare training facility, Fort Gordon.
Katerra Godbee, a realtor with Realty One Group Visionaries, says the university and military post usually keep the real estate market buzzing.
According to Godbee, "we encounter a lot of folks who migrate here for employment or study." There are a lot of people that leave for a while but eventually come back to remain. The inherent allure of the South attracts many.
She said that the locals were exceptionally kind and welcoming. A larger lot size is available for homes, yet the community nonetheless has a rural atmosphere.
Homes on half- or full-acre lots are the norm for buyers. During the height of the epidemic, when everyone yearned for extra breathing room, this was a major selling point.
"Because of our low cost of living, we had a lot of individuals permanently migrating here," Godbee adds. "They came from all over, including California, New Jersey, Texas, Florida, and other places. They arrived here, and they were able to pay in cash.
Augusta's inventory growth this year is the highest of any of these metro areas, at roughly a ratio of 2.5. The number of available homes has also increased during the past several months.
Augusta purchasers haven't been immune to the increasing mortgage rates, even with the cheap prices.
Would you make the move to any of these cities? Let us know in the comments below!
