In this blog, we have compiled a list of the cheapest housing markets analyzed by Realtor.com to purchase a home in the United States in 2022. The firm examined its listing data from the 100 largest metropolitan areas, which they compiled in early October, to determine which had the lowest median home price per square foot.
They used price per square foot rather than total price to account for seasonal changes as well as varying property sizes across the country. Metros encompass the main city as well as its surrounding towns, suburbs, and smaller urban regions. To maintain geographical diversity, Realtor.com only selected one metro region per state.
Here Are the 10 Cheapest Housing Markets in the US
1. Youngstown, OH
The median home list price per square foot is $95
The median home list price is $149,900
Youngstown, Ohio, is the nation's cheapest metro region, midway between Cleveland and Pittsburgh. Like other boomtowns of the 19th and early 20th-century steel industry, its population declined in the 1970s. More homes than buyers lowered prices. Al Cerritelli, a Youngstown suburb real estate agent, claims the city's low cost of living is self-perpetuating in upper Appalachia. This attracts bargain hunters from higher-priced areas.
“Out-of-staters talk about how friendly people are, how little traffic there is, and how affordable it is,” says Cerritelli. As interest rates rose, things slowed down, adds Cerritelli. When he sends new postings to home shoppers, they click on the links. Youngstown prices have dropped more than 2% since August. Year-over-year prices are up 12%.
Cerritelli argues costs were artificially low before the pandemic, but remote workers looking for cheaper locations to dwell pushed up rates. “We were undervalued,” he says. In the past two years, we've seen purchasers elbowing each other to get a deal signed.
2. Scranton, PA
The median home list price per square foot is $124
The median home list price is $225,000
Scranton is around 2.5 hours north of Philadelphia and is the real-life hometown of President Joe Biden. One of America's cheapest ski communities. The city was a coal industry center in the mid-19th century and was dubbed “Electric City” in the 1880s after getting electric lighting and streetcars. The late 20th-century population fell, like many industrial boomtowns.
The city has five colleges and a bustling center. Scranton housing prices are low despite year-over-year gains. Prices per square foot rose 20%, exceeding the national market's 12% growth. It's one of four cities on this list where costs are rising. 1940s three-bedroom home with remodeled kitchen for about $225,000.
3. Syracuse, NY
The median home list price per square foot is $130
The median home list price is $217,250
Realtor.com recently rated Syracuse one of the greatest places for middle-class homebuyers due to its affordable cost. Prices are rising, so buyers on a budget may wish to search more. They grew 10% annually. Syracuse has the fewest properties for sale among major cities. Despite the housing scarcity, properties are selling in 47 to 60 days, according to Realtor.com data. Three-bedroom brick ranch in Syracuse's historic Washington Park area, five minutes from Onondaga Lake, costs $220,000.
4. Wichita, KS
The median home list price per square foot is $134
The median home list price is $304,475
Wichita is renowned as the “Air Capital of the World” Beechcraft, Cessna, Learjet, and Boeing's Stearman Aircraft are headquartered there. It offers a low-cost, high-quality life—and great BBQ. Wichita is one of the birthplaces of the American desegregation movement, commemorated with a 1958 sit-in.
Wichita's home list prices rose the greatest, 24%, in the past year. Wichita has dodged the drop witnessed in other U.S. cities, setting a yearly high in September. This three-bedroom, two-bathroom home is 2,500 square feet and costs $180,000. Or they can consider a $265,000 three-bedroom, two-bedroom ranch.
5. Jackson, MS
The median home list price per square foot is $138
The median home list price is $299,000
LeAnn Rimes' birthplace, Jackson, has poisonous drinking water. The crisis is impacting real estate. Sellers rushed to list their homes, increasing inventory. More properties are for sale currently than last year. The flooding hasn't yet affected housing prices, though. Jackson is one of four metro regions where prices are still higher than a year ago.
Prices per square foot have risen 17% year over year. The city has been a flashpoint in the civil rights struggle, and the EPA has just announced a civil rights investigation into the current water crisis. Formal complaints argued that the current situation is the continuation of systemic neglect of infrastructure needs in the heavily Black urban center of the Jackson metropolitan area.
6. Little Rock, AR
The median home list price per square foot is $141
The median home list price is $298,873
Buyers might also go to Arkansas's capital for inexpensive properties, despite growing costs. Because of its low cost of living and huge redevelopment of its historic core, the city was recently voted one of the finest for middle-class purchasers. The price per square foot has increased by nearly 15%, and homes in Little Rock continue to sell swiftly.
A one-bedroom condo in Little Rock with floor-to-ceiling windows and a patio overlooking the Arkansas River and the downtown River Market District may be purchased for roughly $300,000 in Little Rock. For the same price, you can also acquire a huge, four-bedroom home on a large lot in the wooded suburbs outside of town.
7. Indianapolis, IN
The median home list price per square foot is $144
The median home list price is $300,000
Indianapolis, well known as the site of the Indy 500, has appeared repeatedly on lists of the cheapest cities. The state capital has some of the most affordable mansions in the country. Prices in Indianapolis increased by 11% annually. However, they did decline by around 2% from their May peak. A recently remodeled three-bedroom, one-bathroom home is available for approximately $150,000. Also available for $250,000 is a showing of this 2,000-square-foot, three-bedroom, two-bathroom home.
8. McAllen, TX
The median home list price per square foot is $144
The median home list price is $270,000
McAllen, a community of roughly 150,000 located on the U.S.-Mexico border in the Rio Grande Valley about an hour's drive from the Gulf Coast, offers some of the greatest discounts available today. Nearly 550 kinds of birds and more than 300 types of butterflies attract visitors to the city. It is also a regional shopping destination for both Canadians and Americans.
This port city's home values have bucked the recent housing market price decline. Since this time last year, they have risen continuously. This brick starter home with three bedrooms and rental potential is on the market for $205,000. This recently completed three-bedroom home with a large backyard is available for $285,000 to those with more disposable cash.
9. Columbia, SC
The median home list price per square foot is $146
The median home list price is $308,900
Another state capitol and college town, Columbia is home to the University of South Carolina. During the pandemic, it has become more popular with out-of-state buyers in search of cheaper costs, lower taxes, and warmer weather. In comparison to other metropolitan areas on the list, property prices in Columbia have fallen the most in recent months, by over 5% since June's peak.
Nevertheless, prices are over 10% higher than they were at this time last year. A three-bedroom, 1,800-square-foot home in a Columbia suburb just north of the city center is available for approximately $310,000.
10. Augusta, GA
The median home list price per square foot is $150
The median home list price is $311,575
Augusta, an hour southwest of Columbia, hosts the Master's Golf Tournament in April. Medical, tech, and military hub. Augusta University's Medical College of Georgia is the state's only public medical school. Fort Gordon Army Base is a cybersecurity and electronic warfare training center. Realtor Katerra Godbee says the universities and military base keep the real estate market humming. Godbee: “Many individuals move here for employment or school.”
Many leave and return permanently. Southern charm draws many. She comments, “People are friendly.” It offers a small-town vibe and larger lots. Half-acre or full-acre residences are common. During the pandemic, everyone desired more space. Because of our low cost of living, people from California, New Jersey, Texas, Florida, and elsewhere moved here, Godbee explains.
“They paid cash” Augusta's inventory has expanded the highest this year, by nearly 2.5. Recently, the housing supply has risen. Despite reduced prices, Augusta buyers face higher mortgage rates. “At the beginning of the year, maybe they were looking at homes at the $300,000 mark, but now they’re at $250,000,” Godbee says.
Most Affordable Housing Markets
Here's another report published on Forbes in October 2022. They also looked at 100 metro areas with a population of at least 100,000 to identify the top 10 most affordable cities for homebuyers. They looked at several factors to gauge affordability, including the median income of that city, average home costs, and median real estate taxes.
1. Detroit, Michigan
Motor City ranks first on the list of the most affordable areas to buy a property. Despite the fact that the median salary is among the lowest of the cheap locations on this list, house costs are also among the lowest. In reality, the average Detroit household will spend only approximately 6% of its monthly income on mortgage payments, which is extraordinarily low.
2. Cleveland, Ohio
Cleveland is not only a cheap city, but it is also a young one; the median age is around 36, which is slightly lower than the national average. Cleveland's vibrancy is what distinguishes it. People enjoy water activities and boat parties in this town on Lake Erie.
3. Toledo, Ohio
Toledo ranks third in the list of most affordable housing markets for buyers. It is in an excellent geographical location. It's a one-hour trip to Detroit, a two-hour journey to Cleveland, and a four-hour drive to Chicago from the western edge of Lake Erie. Although Toledo has struggled with a poor economy since the 1980s, the rust belt city has made progress toward a brighter future in recent years.
4. Memphis, Tennessee
Memphis is one of the most affordable cities in the United States, with a cost of living that is 19% lower than the national average, making this Southern metropolis a terrific place to call home! People who live in Memphis do not have to pay state income tax, which allows them to save even more money.
5. Baltimore, Maryland
6. Rochester, New York
Rochester made Forbes' list of most affordable cities—but it could be poised to become slightly less affordable in the future. According to a recent report by real estate analytics firm ATTOM Data Solutions, Rochester was among the metro areas (with a population of at least 1 million in 2020) that saw the biggest leaps in return on investment (ROI) for sellers in the country, up by 49.9%.
It is not surprising that many properties in Rochester receive several offers, and that the majority of homes sell within 12 days for approximately 1% more than the asking price. The reason Rochester's real estate market is so affordable is that higher-paying jobs become scarcer the farther north you travel in New York State.
7. Milwaukee, Wisconsin
Milwaukee metro area is one of the more affordable places to own a home in the U.S. It has become an attractive destination for people fleeing more expensive metro areas, including Chicago, according to data from Apartment List. Just over 90 miles north of the Windy City, Milwaukee median home listing prices are almost half as much as Chicago, which was $370,000 in 2020.
8. Montgomery, Alabama
The Montgomery housing market is supported by a number of demographic and economic indicators. The neighborhood offers inexpensive homes and a robust economy to ensure sustainability. Perhaps even more importantly, prices remain lower than in the majority of the country. This may be the ideal moment to purchase a property in this city. Montgomery Alabama offers the lowest median annual real estate taxes on this list, totaling about $512 per year. Not only is it a great place for low taxes, but Montgomery also offers promising career opportunities.
9. Buffalo, New York
Buffalo, New York, is the most affordable housing market in the state. It has gone through a major transformation over the last decade, with new restaurants, entertainment, activities, and events popping up year after year. Buffalo has a population of less than 300,000, and although it historically had more billionaires per capita than anywhere else on Earth, it is now an economical option to live in a large city.
10. Kansas City, Kansas
Kansas is one of the most affordable cities in the United States and offers superb museums, pleasant people, entertaining activities, and delicious barbecues. The Midwest is home to some of the most affordable regions for first-time homeowners, and Kansas City is a prime example. With median listing prices below $200,000, this neighborhood may be ideal for budget-conscious purchasers.
Source:
- https://www.realtor.com/news/trends/cheapest-affordable-real-estate-housing-in-2022-october/
- https://www.forbes.com/advisor/mortgages/real-estate/most-affordable-cities-to-buy-a-home/
