- 📉 The typical mortgage payment in these markets consumes less than a third of the median household income.
- 🏘️ These cities offer affordable housing, with costs consuming less than 30% of a typical household’s budget.
- 💵 Zillow’s affordability rankings factor in median home values, household incomes, and current mortgage rates with a 20% down payment.
- 📊 The affordability measure used is the “mortgage-to-income ratio,” ensuring other necessities can be comfortably covered.
- 🏠 First city: Pittsburgh, PA, with a typical home value of $202,454 and 19% of monthly income needed for mortgage.
- 🎷 Second city: Jackson, MS, is notable for its rich history and southern hospitality, with a typical home value of $185,338.
- 🎓 Third city: Syracuse, NY, benefits from upcoming tech developments, with a typical home value of $212,404.
- 🏭 Fourth city: Toledo, OH, known for glass manufacturing, offers a typical home value of $176,787.
- 🚗 Fifth city: Wichita, KS, has minimal traffic congestion and a typical home value of $201,780.
- 🎓 Sixth city: Akron, OH, with significant student population, offers affordable homes valued at $207,190.
- 🏛️ Seventh city: St. Louis, MO, blends historic charm with affordability, with homes typically valued at $242,214.
- ⛳ Eighth city: Augusta, GA, is famous for its golf tournament and has a typical home value of $224,839.
- 🎭 Ninth city: Rochester, NY, maintains a vibrant arts scene with homes typically valued at $233,753.
- 🎶 Tenth city: Detroit, MI, continues to evolve with affordable homes valued at $240,536.
- 🏥 Eleventh city: Birmingham, AL, features a rich cultural history and affordable homes valued at $247,702.
- 🎺 Twelfth city: Baton Rouge, LA, reflects a mix of cultural influences with a typical home value of $228,418.
- 🏎️ Thirteenth city: Indianapolis, IN, known for auto racing and affordable homes valued at $270,026.
- 🌟 Fourteenth city: Little Rock, AR, is recognized as great for first-time buyers with homes valued at $212,713.
- 🎡 Fifteenth city: Des Moines, IA, hosts large fairs and serves financial industries with homes valued at $270,827.
- 🌳 Sixteenth city: Columbia, SC, has fast-moving real estate and homes valued at $243,161.
- 🎸 Seventeenth city: Cleveland, OH, offers cultural attractions and affordable homes valued at $215,913.
- ❄️ Eighteenth city: Buffalo, NY, known for heavy snowfall and proximity to Niagara Falls, with homes valued at $244,825.
- 🍻 Nineteenth city: Grand Rapids, MI, is noted for breweries and affordable living with homes valued at $309,531.
- 🎸 Twentieth city: Memphis, TN, famed for its music scene and homes valued at $234,635.
- 🛢️ Twenty-first city: Oklahoma City, OK, combines energy industry jobs with affordable homes valued at $229,529.
- 🏯 Twenty-second city: Louisville, KY, boasts Victorian architecture with homes valued at $247,856.
- 🌊 Twenty-third city: Harrisburg, PA, serves as a metropolitan center with homes valued at $274,217.
- 🌉 Twenty-fourth city: Cincinnati, OH, sits in a river valley and has homes valued at $271,766.
- 🏙️ Twenty-fifth city: Tulsa, OK, features Art Deco architecture and homes valued at $227,703.
- 🧮 Use the Affordability Calculator to determine housing budgets based on income, debts, and down payments.
- 🔢 The debt-to-income calculator helps determine the percentage of income going toward monthly debts.
- 📝 Getting pre-qualified or pre-approved by a lender gives a more precise idea of what you can afford and strengthens your buying position.
Finding the perfect home without breaking the bank can feel like searching for a needle in a haystack. As housing costs continue to rise in many markets, it can be challenging to unearth cities where your dream home fits comfortably within your budget. Fortunately, Zillow’s recent analysis brings hope, highlighting 25 cities where the typical mortgage payment consumes less than a third of the median household monthly income. Ready to embark on a journey to affordable homeownership? Let’s dive into Zillow’s list of the most affordable places to buy a home in the U.S.
Understanding Affordability: The “Mortgage-to-Income Ratio”
Before we explore the cities, it’s essential to understand the primary criterion Zillow used to rank these affordable markets: the “mortgage-to-income ratio.” This ratio evaluates the share of your income that goes toward your mortgage payment. In markets considered affordable, this ratio is typically under 30%, ensuring you have enough leftover for other essentials, debt repayment, and savings.
A Closer Look at Zillow’s Top 25 Affordable Markets
1. Pittsburgh, PA
- Typical Home Value: $202,454
- Share of Monthly Income Needed: 19%
- Monthly Mortgage Payment: $1,053
Pittsburgh offers a unique blend of urban culture and historical charm, with its affordability making it a top choice for budget-conscious homebuyers.
2. Jackson, MS
- Typical Home Value: $185,338
- Share of Monthly Income Needed: 22%
- Monthly Mortgage Payment: $964
Steeped in history and renowned for its Southern hospitality, Jackson is a city where affordability meets rich cultural heritage.
3. Syracuse, NY
- Typical Home Value: $212,404
- Share of Monthly Income Needed: 23%
- Monthly Mortgage Payment: $1,105
Known as a regional hub for education and future tech developments, Syracuse offers an exciting mix of opportunities and affordability.
4. Toledo, OH
- Typical Home Value: $176,787
- Share of Monthly Income Needed: 24%
- Monthly Mortgage Payment: $920
From its eclectic architectural styles to its rich industrial history, Toledo presents an affordable living option with plenty of surprises.
5. Wichita, KS
- Typical Home Value: $201,780
- Share of Monthly Income Needed: 24%
- Monthly Mortgage Payment: $1,050
Wichita’s low congestion and short commute times enhance its appeal, making it a comfortable and affordable place to live.
6. Akron, OH
- Typical Home Value: $207,190
- Share of Monthly Income Needed: 24%
- Monthly Mortgage Payment: $1,078
Home to major educational institutions, Akron provides a youthful vibe and ample opportunity at an affordable price.
7. St. Louis, MO
- Typical Home Value: $242,214
- Share of Monthly Income Needed: 25%
- Monthly Mortgage Payment: $1,260
With its rich historical background and vibrant neighborhoods, St. Louis blends charm with affordability.
8. Augusta, GA
- Typical Home Value: $224,839
- Share of Monthly Income Needed: 25%
- Monthly Mortgage Payment: $1,170
Famed for its annual golf tournament and scenic Savannah River views, Augusta offers affordability and outdoor recreation.
9. Rochester, NY
- Typical Home Value: $233,753
- Share of Monthly Income Needed: 25%
- Monthly Mortgage Payment: $1,216
Rochester’s vibrant arts scene and cultural festivals make it an exciting and affordable place to call home.
10. Detroit, MI
- Typical Home Value: $240,536
- Share of Monthly Income Needed: 26%
- Monthly Mortgage Payment: $1,251
Continuously evolving, Detroit merges affordability with diverse cultural experiences.
11. Birmingham, AL
- Typical Home Value: $247,702
- Share of Monthly Income Needed: 26%
- Monthly Mortgage Payment: $1,289
Rich in cultural history and home to renowned medical institutions, Birmingham offers both affordability and a strong sense of community.
12. Baton Rouge, LA
- Typical Home Value: $228,418
- Share of Monthly Income Needed: 26%
- Monthly Mortgage Payment: $1,188
Reflecting a mix of French, Spanish, African, and Creole influences, Baton Rouge provides an affordable lifestyle amidst a culturally rich environment.
13. Indianapolis, IN
- Typical Home Value: $270,026
- Share of Monthly Income Needed: 26%
- Monthly Mortgage Payment: $1,405
Known for its auto racing traditions, Indianapolis lands as one of the hottest and most affordable markets.
14. Little Rock, AR
- Typical Home Value: $212,713
- Share of Monthly Income Needed: 26%
- Monthly Mortgage Payment: $1,107
Highlighted as a top city for first-time buyers, Little Rock offers affordability alongside a friendly community atmosphere.
15. Des Moines, IA
- Typical Home Value: $270,827
- Share of Monthly Income Needed: 26%
- Monthly Mortgage Payment: $1,409
Des Moines stands as both a financial hub and a city of vibrant contrasts, providing affordability and opportunity.
16. Columbia, SC
- Typical Home Value: $243,161
- Share of Monthly Income Needed: 26%
- Monthly Mortgage Payment: $1,265
Columbia’s fast-paced real estate market and central location in South Carolina enhance its affordability appeal.
17. Cleveland, OH
- Typical Home Value: $215,913
- Share of Monthly Income Needed: 26%
- Monthly Mortgage Payment: $1,123
Cleveland’s attractions, like the Rock & Roll Hall of Fame, enrich the affordable living experience.
18. Buffalo, NY
- Typical Home Value: $244,825
- Share of Monthly Income Needed: 26%
- Monthly Mortgage Payment: $1,274
Buffalo’s affordability combines with its cultural vitality and proximity to Niagara Falls.
19. Grand Rapids, MI
- Typical Home Value: $309,531
- Share of Monthly Income Needed: 27%
- Monthly Mortgage Payment: $1,610
Grand Rapids’ breweries and low cost of living make it an attractive and affordable option.
20. Memphis, TN
- Typical Home Value: $234,635
- Share of Monthly Income Needed: 27%
- Monthly Mortgage Payment: $1,221
Famed for its blues music and Elvis Presley’s Graceland, Memphis offers a culturally rich yet affordable living option.
21. Oklahoma City, OK
- Typical Home Value: $229,529
- Share of Monthly Income Needed: 27%
- Monthly Mortgage Payment: $1,194
Combining a robust energy sector with traditional cowboy culture, Oklahoma City balances affordability and industry.
22. Louisville, KY
- Typical Home Value: $247,856
- Share of Monthly Income Needed: 28%
- Monthly Mortgage Payment: $1,290
Louisville’s Victorian architecture and rich cultural scene make it an affordable gem for homebuyers.
23. Harrisburg, PA
- Typical Home Value: $274,217
- Share of Monthly Income Needed: 28%
- Monthly Mortgage Payment: $1,427
Located along the Susquehanna River, Harrisburg serves as a vibrant metropolitan center with affordable options.
24. Cincinnati, OH
- Typical Home Value: $271,766
- Share of Monthly Income Needed: 28%
- Monthly Mortgage Payment: $1,414
With a river valley setting, Cincinnati is highlighted as a hot market for 2024 while maintaining affordability.
25. Tulsa, OK
- Typical Home Value: $227,703
- Share of Monthly Income Needed: 28%
- Monthly Mortgage Payment: $1,185
Tulsa stands out for its Art Deco architecture and lively arts scene, making it an affordable cultural hub.
Tips for Determining What You Can Afford
Use the Affordability Calculator
Zillow’s Affordability Calculator provides a comprehensive view of what you can afford. Simply input your annual income, monthly debt expenses, and planned down payment to see different scenarios.
Leverage the Debt-to-Income Calculator
This tool helps you understand your debt-to-income ratio, which represents the portion of your gross monthly income that goes towards debt repayment. Lenders use this ratio to assess how much you can responsibly borrow.
Get Pre-Qualified and Pre-Approved
Pre-qualification and pre-approval give you an exact figure on what you can afford and enhance your buying power. Pre-qualification involves a preliminary review of your finances, while pre-approval involves a more detailed check which results in a lender’s tentative commitment to lend a specified amount.
Conclusion
Finding an affordable home doesn’t mean sacrificing your desired lifestyle. Zillow’s analysis provides a starting point by identifying cities where homeownership is within reach for many. Utilize the tools available and consider speaking with real estate professionals to make informed decisions.
