Many people find it increasingly difficult to purchase a home in today’s United States housing market. Rising interest rates, high property values, and a limited inventory of homes are making ownership unaffordable for a large portion of the population. However, a recent study conducted by WalletHub provides a ray of hope. Despite national trends, several cities still offer relatively affordable pathways to homeownership, especially for those willing to look outside the traditional hotspots.
Why Homeownership Feels Out of Reach
Across the U.S., the combination of elevated mortgage rates and inflated housing prices is creating immense pressure on potential buyers. WalletHub’s findings suggest that for many Americans, the obstacles are no longer about saving for a down payment but rather the overall cost of maintaining a mortgage in today’s economic climate. In fact, the challenge has become so significant that many buyers are abandoning the idea altogether.
The Power of Location
A closer examination reveals that location significantly influences affordability despite the grim picture painted by the nationwide average. Housing markets are deeply influenced by local supply and demand, job availability, and economic development. In cities where housing inventory is more abundant and demand remains moderate, the opportunity to buy a home at a reasonable cost still exists. These pockets of affordability offer hope to prospective buyers if they are open to relocating.
Metrics Behind the Rankings
Realtor (real estate listing platform) has contributed valuable data to the study by calculating the income needed to purchase a median-priced, three-bedroom home. The model assumed a 10% down payment, a 30-year fixed mortgage with a 6.65% interest rate, and that no more than 30% of a household’s income would go toward housing costs, including taxes and insurance. WalletHub then expanded on this idea by analyzing ten key metrics to assess city-level affordability. These included the cost per square foot, percentage of available homes, median income levels, and general cost of living.
Flint, Michigan: The Most Affordable City
Flint has emerged as the most affordable city in the country for prospective homeowners. With an average home price of just $61 per square foot, it leads WalletHub’s rankings. What makes Flint especially attractive is its housing availability; nearly 21% of homes in the city are on the market. This high inventory provides buyers with choices that are both budget-friendly and flexible. For those seeking to enter the market without incurring overwhelming debt, Flint stands out as a viable option.
Detroit’s Surprising Affordability
Following Flint, Detroit, Michigan, ranks second in terms of affordability. Detroit offers low home prices and boasts a higher inventory rate than Flint, about 22%. This level of availability, combined with relatively low costs, is drawing new attention to the city as a destination for first-time homebuyers. Despite Detroit’s economic challenges, the current housing landscape offers opportunities for those seeking affordable housing.
Pittsburgh: Budget-Friendly with Urban Perks
Ranking third is Pittsburgh, a city known for its cultural richness and industrial history. Despite its urban environment, Pittsburgh remains one of the more affordable housing markets in the nation. It strikes a balance between low cost and a strong infrastructure, offering potential buyers a lifestyle that includes urban amenities without the price tag associated with cities on the coasts. Its position on the list highlights the affordability gap that exists even among major metropolitan areas.
15 States with Homes Under $100K
Looking beyond individual cities, Realtor.com also identified fifteen states where it’s still possible to purchase a home for under $100,000. These states include:
- Alabama
- Kentucky
- Pennsylvania
- Oklahoma
- Illinois
- Arkansas
- Mississippi
- Missouri
- Kansas
- Iowa
- Indiana
- Louisiana
- Michigan
- Ohio
- West Virginia
These areas are some of the last pockets of affordability in a housing market that continues to exert pressure on lower- and middle-income families. For those seeking long-term stability through homeownership, these states offer meaningful options.
An Uneven Housing Crisis
The contrast between affordable and unaffordable housing markets in the U.S. illustrates how deeply uneven the housing crisis has become. In cities like San Francisco, New York, and Los Angeles, even modest homes are priced far beyond the reach of the average buyer. Meanwhile, cities like Flint, Detroit, and Pittsburgh are emerging as havens for buyers willing to relocate. This disparity suggests that national housing policies may need to adopt a more regional focus to address the unique conditions of local markets.
Opportunity for the Flexible Buyer
For individuals and families open to relocating, the WalletHub and Realtor.com findings offer encouraging news. Affordable housing still exists—it just might not be in the buyer’s current zip code. Flexibility in location, coupled with a comprehensive understanding of mortgage costs and local living expenses, can unlock previously unattainable ownership opportunities. These insights not only reveal where opportunities exist but also demonstrate the value of research and planning in the modern homebuying process.