2006: U.S. Cities With Affordable Real Estate And Homes
The price of housing is a major challenge in the United States. Some estimates note that more than 50% of the population can't afford a median priced home. According to National Association of Home Builders (NAHB), of the total number of new and existing homes sold nationwide during the third quarter, only 40. 4 percent were inexpensive for families earning the median U. S. income of $59,600.
But it is good news that housing affordability on the national level has not changed much in the third quarter in spite of a rise in the mortgage interest rates during the last quarter. This was because many markets saw a slight decrease in their home prices, which helped offset the rise in mortgage rates.
Indianapolis (Indiana) is the most inexpensive city for homes in America, based on the 2006 third quarter report of the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). The city reached this position for the fifth consecutive quarter.
Of the total number of housing units sold in Indianapolis during the third quarter, 86 percent of homes were priced at or below the U. S. median household income of $65,100. Homes in this metro area had a median income price of $122,000, which is slightly higher from $120,000 of the previous quarter.
It is interesting to note that the most inexpensive U. S. cities for homes, condos and other real estate are largely from the northern industrial metro areas. The other larger cities that top the list for inexpensive homes in the third quarter after Indianapolis are Youngstown-Warren-Boardman (Ohio-Pennsylvania); Detroit-Livonia-Dearborn (Michigan); Buffalo-Niagara Falls (New York); and Grand Rapids and Wyoming (Michigan).
The report also lists the top seven smaller cities in USA that have the most inexpensive housing markets. These are: Bay City in Michigan, Springfield in Ohio, Mansfield in Ohio, Lansing-East Lansing in Michigan, Lima in Ohio, Battle Creek in Michigan and Canton-Massillon in Ohio.
For both major metros and small metros, many of the least inexpensive cities are located in California. The least inexpensive major metro areas are Santa Ana-Anaheim-Irvine, Modesto, Stockton, and San Diego-Carlsbad-San Marcos, in that order. The least inexpensive smaller metros (less than 500,000 people) include: Salinas, Merced, Madera, Napa, and Santa Barbara-Santa Maria.
The good news for homebuyers is that there are many inexpensive cities in the United States. Moreover, even for cities that rated poorly for affordability, there might be some communities within the larger city that have inexpensive housing. For example, even though the San Diego metro in California rated poorly overall for affordability, there are some communities in San Diego priced to meet the needs of lower-income home buyers. A good real estate agent can help you select a community where you want to live based on your housing budget and needs.
