Report Reveals 5 Most Affordable Cities for Buying a House

A recent report from Wall Street Journal noted the most affordable cities to buy a house. If you’re looking for a place to take advantage of the home buyer’s tax credit – and don’t mind relocating if necessary – then these cities may just have homes you’re looking for.

Most Affordable Cities

According to the WSJ report, here are the top five most affordable cities to buy a home:

1. Indianapolis: Indianapolis was listed as the most affordable city to buy a house because the median family income is fairly high, $68,100, and according to the National Association of Homebuilders and Wells Fargo Housing Opportunity Index, the home price median is a very reasonable at $107,000. With unemployment at 7.7 percent, below the national rate, Indianapolis ranks high with a 94.5 percent affordability score.
2. Youngstown, Ohio: According to the report, Youngstown, Ohio was the second most affordable city to buy a home. The median income was a little lower – $54,300 – but the median home price was a lot lower – $72,000. This brought the city’s affordability score to 93.9 percent.
3. Detroit: The report noted that Detroit was among the most affordable cities to buy a home because of its reasonable median family income ($57,100) and it’s well-priced home averages ($84,000). According to these numbers, Detroit scored a 92.2 percent affordability score.
4. Warren, Michigan: Another Michigan city made WSJ’s list. According to the report, Warren, Mich. scored 91.8 percent for affordability thanks to its high median income of $81,000 and its reasonable median home price of $111,000.
5. Grand Rapids, Michigan: It’s becoming apparent that Michigan is one of the most affordable states in the country to buy a home. According to the report, Grand Rapids, Mich. has a 91.4 percent affordability score based on its income of $63,100 and its median home price of $103,000.

The report also noted the least affordable cities to buy a home: New York City, San Francisco, Honolulu, Santa Ana, Calif. and Nassau/Suffolk, N.Y. So if you’re seriously considering purchasing a home in any of these cities, it’s good to take a closer look at how affordable they are (or aren’t) for you.