10 Best Cities Where You Can Buy a House for Under the National Average

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These days, buying a home is very costly. Since the onset of the pandemic four years ago, demand for homes has skyrocketed. Dwindling supply and record-setting mortgage interest rates have sent the price of homes soaring.

According to the Federal Reserve Bank of St. Louis, the median sales price of houses sold in the U.S. as of Q1 2024 is a staggering $420,800. That’s up from $329,000 as of Q1 2020. Buying a home may be out of reach with home prices like these.

However, there are still 10 cities where it’s possible to buy a house under the national average and achieve the age-old “American dream.”

Top 10 Cities To Buy A Home For Less

Forbes Advisor analyzed 100 metro areas with a population of at least 100,000 to identify the top 10 most affordable cities for homebuyers. They looked at these factors to gauge affordability:

• Median salary
• Median home listing price in 2023
• Median annual real estate taxes
• Average state income tax
• Monthly utilities
• Annual food cost

Here are the results:

1. Kansas City, Missouri

• Median salary: $37,861
• Median home listing price in 2023: $453,363
• Median annual real estate taxes: $1,663
• Average state income tax: 4.68%
• Monthly utilities: $271
• Annual food cost: $7,682

2. Buffalo, New York

• Median salary: $41,036
• Median home listing price in 2023: $277,697
• Median annual real estate taxes: $1,601
• Average state income tax: 6%
• Monthly utilities: $194
• Annual food cost: $8,966

3. Montgomery, Alabama

• Median salary: $39,505
• Median home listing price in 2023: $299,224
• Median annual real estate taxes: $512
• Average state income tax: 3.67%
• Monthly utilities: $238
• Annual food cost: $7,616

4. Milwaukee, Wisconsin

• Median salary: $41,166
• Median home listing price in 2023: $239,900
• Median annual real estate taxes: $3,122
• Average state income tax: 5.78%
• Monthly utilities: $202
• Annual food cost: $7,682

5. Rochester, New York

• Median salary: $41,646
• Median home listing price in 2023: $274,338
• Median annual real estate taxes: $2,625
• Average state income tax: 6%
• Monthly utilities: $197
• Annual food cost: $8,966

6. Baltimore, Maryland

• Median salary: $50,108
• Median home listing price in 2023: $365,875
• Median annual real estate taxes: $2,799
• Average state income tax: 4.41%
• Monthly utilities: $241
• Annual food cost: $8,434

7. Memphis, Tennessee

• Median salary: $38,949
• Median home listing price in 2023: $327,275
• Median annual real estate taxes: $1,658
• Average state income tax: 1%
• Monthly utilities: $158
• Annual food cost: $7,616

8. Toledo, Ohio

• Median salary: $37,220
• Median home listing price in 2023: $239,900
• Median annual real estate taxes: $1,541
• Average state income tax: 3.84%
• Monthly utilities: $201
• Annual food cost: $7,682

9. Cleveland, Ohio

• Median salary: $47,268
• Median home listing price in 2023: $248,480
• Median annual real estate taxes: $1,508
• Average state income tax: 3.84%
• Monthly utilities: $187
• Annual food cost: $7,682

10. Detroit, Michigan

• Median salary: $36,000
• Median home listing price in 2023: $270,000
• Median real estate taxes: $1,268
• Average state income tax: 4.25%
• Monthly utilities: $290
• Annual food cost: $8,277

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