Home prices surged over the last few years during the COVID-19 pandemic, with the median sales price skyrocketing from $313,000 in Q1 2019 to $436,800 in Q1 2023. While prices may be starting to lower in some parts of the country this year, interest rates have rapidly climbed. For example, the average 30-year fixed mortgage rate shot up from a historic low of 2.65% in January 2021 to 6.39% in May 2023.
With the combination of inflated prices and high interest rates in play, many consumers may wonder if they can even afford to buy a home. Fortunately, owning real estate in some cities is much less expensive than others.
In order to determine the most affordable cities for home buyers, WalletHub compared 300 U.S. cities across ten key metrics. The data set ranges from the costs of homes and their maintenance to tax rates and vacancy rates.
Table of Contents
Main FindingsRanking by City SizeAsk the ExpertsMethodology
Main Findings
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Most Affordable Cities for Home Buyers
Note: *1 = Most Affordable
Housing Affordability
Highest
- 1. Springfield, IL
- 2. Peoria, IL
- 3. Montgomery, AL
- 4. Detroit, MI
- 5. Flint, MI
Lowest
- 238. Los Angeles, CA
- T-239. Glendale, CA
- T-239. Berkeley, CA
- T-239. Santa Monica, CA
- T-239. Santa Barbara, CA
Best City vs. Worst City: 18x Difference
Springfield, IL vs. Santa Barbara, CA
Maintenance Affordability
Highest
- 1. Sunnyvale, CA
- 2. Santa Clara, CA
- 3. Naperville, IL
- 4. Bellevue, WA
- 5. Centennial, CO
Lowest
- 296. Newark, NJ
- 297. Detroit, MI
- 298. Hartford, CT
- 299. Cleveland, OH
- 300. Flint, MI
Rent-to-Price Ratio
Highest
- T-1. Flint, MI
- T-1. Detroit, MI
- T-1. Cleveland, OH
- T-1. Dayton, OH
- T-1. Rochester, NY
Lowest
- 296. Sunnyvale, CA
- 297. Santa Barbara, CA
- 298. San Francisco, CA
- 299. Berkeley, CA
- 300. Santa Monica, CA
Best City vs. Worst City: 16x Difference
Flint, MI vs. Santa Monica, CA
Vacancy Rate
Highest
- 1. Miami Beach, FL
- 2. Tuscaloosa, AL
- 3. Detroit, MI
- 4. Pompano Beach, FL
- 5. Flint, MI
Lowest
- 296. Arvada, CO
- 297. Antioch, CA
- 298. Fontana, CA
- 299. Elk Grove, CA
- 300. South Gate, CA
Best City vs. Worst City: 17x Difference
Miami Beach, FL vs. South Gate, CA
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Ranking by City Size
| Rank (1=Best) | Large Cities (Score) | Rank (1=Best) | Midsize Cities (Score) | Rank (1=Best) | Small Cities (Score) |
|---|---|---|---|---|---|
| 1 | Detroit, MI (70.91) | 1 | Montgomery, AL (71.37) | 1 | Flint, MI (71.35) |
| 2 | Pittsburgh, PA (70.08) | 2 | Toledo, OH (70.97) | 2 | Warren, MI (70.21) |
| 3 | Columbus, OH (68.09) | 3 | Akron, OH (70.30) | 3 | Yuma, AZ (69.45) |
| 4 | Cleveland, OH (67.18) | 4 | Augusta, GA (68.94) | 4 | Springfield, IL (69.12) |
| 5 | Las Vegas, NV (67.18) | 5 | Grand Rapids, MI (68.45) | 5 | Palm Bay, FL (69.10) |
| 6 | Memphis, TN (65.93) | 6 | Buffalo, NY (68.16) | 6 | Surprise, AZ (68.66) |
| 7 | Henderson, NV (65.61) | 7 | North Las Vegas, NV (67.86) | 7 | Davenport, IA (68.27) |
| 8 | Louisville, KY (65.50) | 8 | Fayetteville, NC (67.77) | 8 | Cedar Rapids, IA (68.16) |
| 9 | Mesa, AZ (65.18) | 9 | Des Moines, IA (67.76) | 9 | Peoria, IL (67.38) |
| 10 | Baltimore, MD (64.42) | 10 | Columbus, GA (66.42) | 10 | Livonia, MI (67.01) |
| 11 | Indianapolis, IN (63.90) | 11 | Birmingham, AL (65.54) | 11 | Dayton, OH (66.91) |
| 12 | Philadelphia, PA (63.77) | 12 | Gilbert, AZ (65.46) | 12 | Erie, PA (66.86) |
| 13 | Virginia Beach, VA (63.42) | 13 | Peoria, AZ (65.27) | 13 | Dearborn, MI (66.51) |
| 14 | Charlotte, NC (63.33) | 14 | Chesapeake, VA (65.03) | 14 | Lakeland, FL (66.16) |
| 15 | Atlanta, GA (63.33) | 15 | Cape Coral, FL (64.31) | 15 | Rockford, IL (66.10) |
| 16 | St. Louis, MO (63.29) | 16 | Fort Wayne, IN (64.14) | 16 | Fort Smith, AR (65.50) |
| 17 | Milwaukee, WI (63.22) | 17 | Joliet, IL (63.89) | 17 | Green Bay, WI (64.92) |
| 18 | Lexington, KY (62.67) | 18 | Chandler, AZ (63.52) | 18 | High Point, NC (64.45) |
| 19 | Phoenix, AZ (62.51) | 19 | Little Rock, AR (63.05) | 19 | Tuscaloosa, AL (63.89) |
| 20 | Orlando, FL (62.18) | 20 | Boise, ID (63.04) | 20 | Lansing, MI (63.71) |
| 21 | Raleigh, NC (61.99) | 21 | Winston-Salem, NC (62.95) | 21 | Hampton, VA (63.26) |
| 22 | Nashville, TN (61.72) | 22 | Greensboro, NC (62.92) | 22 | Victorville, CA (63.24) |
| 23 | Oklahoma City, OK (61.31) | 23 | Port St. Lucie, FL (62.43) | 23 | Kenosha, WI (63.21) |
| 24 | Tulsa, OK (60.97) | 24 | Glendale, AZ (62.41) | 24 | Broken Arrow, OK (63.13) |
| 25 | Aurora, CO (60.97) | 25 | Aurora, IL (62.26) | 25 | Roanoke, VA (63.13) |
| 26 | Cincinnati, OH (60.89) | 26 | Cary, NC (62.04) | 26 | Sunrise, FL (62.26) |
| 27 | Tucson, AZ (60.87) | 27 | Huntsville, AL (61.89) | 27 | Hillsboro, OR (62.03) |
| 28 | Jacksonville, FL (60.83) | 28 | Newport News, VA (61.84) | 28 | Visalia, CA (61.66) |
| 29 | Kansas City, MO (60.36) | 29 | Reno, NV (61.42) | 29 | Roswell, GA (61.66) |
| 30 | Minneapolis, MN (59.88) | 30 | Mobile, AL (61.27) | 30 | Murfreesboro, TN (61.59) |
| 31 | Colorado Springs, CO (59.10) | 31 | Richmond, VA (61.14) | 31 | Waukegan, IL (61.51) |
| 32 | Tampa, FL (58.63) | 32 | Durham, NC (60.86) | 32 | Savannah, GA (61.47) |
| 33 | Chicago, IL (58.61) | 33 | Norfolk, VA (60.78) | 33 | Elgin, IL (61.00) |
| 34 | Stockton, CA (58.05) | 34 | Jackson, MS (60.71) | 34 | Pueblo, CO (60.49) |
| 35 | Wichita, KS (57.99) | 35 | Rochester, NY (60.64) | 35 | Centennial, CO (60.18) |
| 36 | Fresno, CA (57.98) | 36 | Tallahassee, FL (60.58) | 36 | North Charleston, SC (60.11) |
| 37 | Bakersfield, CA (57.75) | 37 | Spokane, WA (60.29) | 37 | Allentown, PA (60.02) |
| 38 | Portland, OR (57.72) | 38 | Knoxville, TN (60.20) | 38 | Thornton, CO (59.86) |
| 39 | Sacramento, CA (56.42) | 39 | Salem, OR (60.19) | 39 | Greeley, CO (59.72) |
| 40 | Albuquerque, NM (55.68) | 40 | Salt Lake City, UT (60.08) | 40 | Naperville, IL (59.71) |
| 41 | Denver, CO (55.65) | 41 | Madison, WI (59.86) | 41 | Arvada, CO (59.63) |
| 42 | Omaha, NE (55.25) | 42 | Tempe, AZ (59.51) | 42 | Clovis, CA (59.59) |
| 43 | Fort Worth, TX (55.08) | 43 | Vancouver, WA (59.41) | 43 | Spokane Valley, WA (59.55) |
| 44 | San Antonio, TX (54.90) | 44 | Elk Grove, CA (58.78) | 44 | Clearwater, FL (59.47) |
| 45 | Houston, TX (54.63) | 45 | Tacoma, WA (58.64) | 45 | Norman, OK (59.24) |
| 46 | St. Paul, MN (54.37) | 46 | Moreno Valley, CA (58.35) | 46 | Sterling Heights, MI (59.11) |
| 47 | Corpus Christi, TX (54.32) | 47 | Lancaster, CA (58.33) | 47 | Yakima, WA (59.06) |
| 48 | Riverside, CA (53.21) | 48 | Springfield, MO (58.23) | 48 | West Palm Beach, FL (58.74) |
| 49 | New Orleans, LA (51.66) | 49 | Modesto, CA (58.17) | 49 | Charleston, SC (58.58) |
| 50 | Arlington, TX (51.21) | 50 | Scottsdale, AZ (57.79) | 50 | Westminster, CO (58.25) |
| 51 | Dallas, TX (50.96) | 51 | St. Petersburg, FL (57.62) | 51 | Wilmington, NC (58.23) |
| 52 | El Paso, TX (49.32) | 52 | Palmdale, CA (56.97) | 52 | Beaverton, OR (57.97) |
| 53 | Seattle, WA (48.31) | 53 | Baton Rouge, LA (56.66) | 53 | Portsmouth, VA (57.72) |
| 54 | Austin, TX (47.10) | 54 | Overland Park, KS (56.40) | 54 | Gresham, OR (57.66) |
| 55 | Washington, DC (46.76) | 55 | Lakewood, CO (56.38) | 55 | Albany, NY (57.50) |
| 56 | Miami, FL (44.85) | 56 | San Bernardino, CA (56.23) | 56 | Roseville, CA (57.40) |
| 57 | Santa Ana, CA (42.26) | 57 | Pembroke Pines, FL (55.31) | 57 | Ann Arbor, MI (57.32) |
| 58 | Anaheim, CA (41.36) | 58 | Shreveport, LA (55.05) | 58 | Vacaville, CA (57.07) |
| 59 | Newark, NJ (41.16) | 59 | Lincoln, NE (54.75) | 59 | Pompano Beach, FL (56.58) |
| 60 | Oakland, CA (39.68) | 60 | Amarillo, TX (54.40) | 60 | Boca Raton, FL (56.48) |
| 61 | San Diego, CA (39.31) | 61 | Alexandria, VA (53.81) | 61 | Athens-Clarke, GA (56.45) |
| 62 | Honolulu, HI (35.80) | 62 | Fort Collins, CO (53.79) | 62 | Longmont, CO (56.45) |
| 63 | Long Beach, CA (34.97) | 63 | Springfield, MA (53.13) | 63 | Vallejo, CA (56.33) |
| 64 | Boston, MA (34.91) | 64 | Eugene, OR (53.10) | 64 | Murrieta, CA (56.26) |
| 65 | San Jose, CA (34.43) | 65 | Fontana, CA (52.94) | 65 | Sandy Springs, GA (56.04) |
| 66 | San Francisco, CA (32.65) | 66 | McKinney, TX (52.87) | 66 | Fairfield, CA (55.99) |
| 67 | New York, NY (32.25) | 67 | Anchorage, AK (52.87) | 67 | Davie, FL (55.56) |
| 68 | Los Angeles, CA (29.77) | 68 | Grand Prairie, TX (52.70) | 68 | Manchester, NH (55.56) |
| 69 | Garland, TX (52.41) | 69 | Rialto, CA (55.11) | ||
| 70 | Laredo, TX (51.96) | 70 | Kent, WA (54.65) | ||
| 71 | Corona, CA (51.61) | 71 | Gainesville, FL (54.63) | ||
| 72 | Hollywood, FL (50.97) | 72 | Federal Way, WA (54.25) | ||
| 73 | Providence, RI (50.87) | 73 | Temecula, CA (54.02) | ||
| 74 | Ontario, CA (50.85) | 74 | Plantation, FL (54.00) | ||
| 75 | Irving, TX (50.63) | 75 | Miramar, FL (53.90) | ||
| 76 | Frisco, TX (50.30) | 76 | Mesquite, TX (53.89) | ||
| 77 | Santa Clarita, CA (50.24) | 77 | Miami Gardens, FL (53.32) | ||
| 78 | Worcester, MA (50.02) | 78 | Antioch, CA (52.85) | ||
| 79 | Fort Lauderdale, FL (49.53) | 79 | Chico, CA (52.73) | ||
| 80 | Rancho Cucamonga, CA (49.27) | 80 | Everett, WA (52.64) | ||
| 81 | Chula Vista, CA (48.51) | 81 | Renton, WA (52.03) | ||
| 82 | Plano, TX (48.30) | 82 | Carrollton, TX (51.57) | ||
| 83 | Salinas, CA (48.10) | 83 | Richardson, TX (51.45) | ||
| 84 | Hialeah, FL (47.37) | 84 | Santa Maria, CA (51.41) | ||
| 85 | Jersey City, NJ (46.96) | 85 | Allen, TX (51.28) | ||
| 86 | Oxnard, CA (46.64) | 86 | Denton, TX (51.16) | ||
| 87 | Yonkers, NY (46.09) | 87 | Coral Springs, FL (50.97) | ||
| 88 | Hayward, CA (45.85) | 88 | Carson, CA (47.58) | ||
| 89 | Santa Rosa, CA (45.80) | 89 | Brockton, MA (47.57) | ||
| 90 | Oceanside, CA (45.50) | 90 | Concord, CA (47.26) | ||
| 91 | Pomona, CA (45.43) | 91 | Lowell, MA (47.08) | ||
| 92 | Paterson, NJ (41.46) | 92 | Richmond, CA (46.79) | ||
| 93 | Escondido, CA (41.33) | 93 | Simi Valley, CA (46.69) | ||
| 94 | Fremont, CA (39.16) | 94 | New Bedford, MA (46.52) | ||
| 95 | Garden Grove, CA (38.88) | 95 | Hartford, CT (46.05) | ||
| 96 | Sunnyvale, CA (38.22) | 96 | West Covina, CA (45.44) | ||
| 97 | Huntington Beach, CA (36.12) | 97 | Mission Viejo, CA (44.91) | ||
| 98 | Irvine, CA (35.03) | 98 | Compton, CA (44.61) | ||
| 99 | Glendale, CA (27.49) | 99 | Norwalk, CA (44.50) | ||
| 100 | Fall River, MA (44.16) | ||||
| 101 | New Haven, CT (44.15) | ||||
| 102 | Bellevue, WA (43.89) | ||||
| 103 | Vista, CA (43.41) | ||||
| 104 | Elizabeth, NJ (43.35) | ||||
| 105 | Stamford, CT (43.18) | ||||
| 106 | Quincy, MA (43.12) | ||||
| 107 | Lynn, MA (43.11) | ||||
| 108 | Waterbury, CT (43.00) | ||||
| 109 | Orange, CA (41.59) | ||||
| 110 | Ventura, CA (41.26) | ||||
| 111 | Miami Beach, FL (40.99) | ||||
| 112 | Bridgeport, CT (40.97) | ||||
| 113 | Fullerton, CA (40.61) | ||||
| 114 | Thousand Oaks, CA (40.54) | ||||
| 115 | Downey, CA (40.12) | ||||
| 116 | Inglewood, CA (37.92) | ||||
| 117 | Carlsbad, CA (37.73) | ||||
| 118 | South Gate, CA (37.65) | ||||
| 119 | Torrance, CA (37.42) | ||||
| 120 | El Cajon, CA (36.69) | ||||
| 121 | Santa Clara, CA (36.00) | ||||
| 122 | Daly City, CA (35.50) | ||||
| 123 | El Monte, CA (34.78) | ||||
| 124 | San Mateo, CA (34.40) | ||||
| 125 | Cambridge, MA (33.89) | ||||
| 126 | Westminster, CA (33.13) | ||||
| 127 | Costa Mesa, CA (32.80) | ||||
| 128 | Pasadena, CA (31.80) | ||||
| 129 | Boulder, CO (30.04) | ||||
| 130 | Burbank, CA (29.38) | ||||
| 131 | Santa Monica, CA (26.08) | ||||
| 132 | Berkeley, CA (24.96) | ||||
| 133 | Santa Barbara, CA (21.95) |
Ask the Experts
In order to get more insight into affording a home during this difficult economic period, WalletHub turned to a panel of experts. You can click on the pictures of the experts below to read their bios and responses to the following key questions:
- What should home buyers consider when choosing a city to settle down in?
- What are some housing market predictions for 2023?
- Will home prices finally become affordable this year?
- When in 2023 should home buyers consider making a purchase? Is 2023 a good year to buy a home?
- How can state and local authorities increase home-buying affordability?
Ask the Experts
J. David Chapman
Ph.D. – Realty1, LLC, Owner/Broker – University of Central Oklahoma, Real Estate Professor and State of Oklahoma, Real Estate Commissioner, City of Edmond, Former City Council member
Read More
Katrin B. Anacker
Professor of Public Policy, Schar School of Policy and Government – George Mason University
Read More
Kirk McClure
Ph.D. – Professor Emeritus of Urban Planning in the School of Public Affairs and Administration – University of Kansas
Read More
James Refalo
Professor College of Business & Economics, Department of Finance and Law – California State University, Los Angeles
Read More
Xiaoqing Eleanor Xu
Ph.D., CFA – Professor of Finance, Stillman School of Business – Seton Hall University
Read More
Steven F. Brown
Ph.D., MBA, CPA, CFP® – Texas Real Estate Broker, Real Estate Faculty – Dallas College/Cedar Valley Campus
Read More
More Experts
Methodology
To determine the most affordable cities for home buyers, WalletHub compared a sample of 300 U.S. cities (varying in size) across ten key metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for home affordability. Data for metrics marked with an asterisk (*) were available at the state level only.
Finally, we determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample. Our sample considers only the city proper in each case and excludes cities in the surrounding metro area. Each city was categorized according to the following population-size guidelines:
- Large cities: More than 300,000 people
- Midsize cities: 100,000 to 300,000 people
- Small cities: Fewer than 100,000 people
The metrics used are listed below with their corresponding weights.
- Housing Affordability: Triple Weight (~25.00 Points)
Note: This metric was calculated as follows: Median House Price / Median Annual Household Income. - Maintenance Affordability: Full Weight (~8.33 Points)
Note: This metric measures maintenance costs as share of income. - Average Cost of Homeowner’s Insurance*: Full Weight (~8.33 Points)
- Cost of Living: Full Weight (~8.33 Points)
- Cost per Square Foot: Double Weight (~16.67 Points)
Note: This metric measures specifically the median list price per average home square footage. - Real-Estate Tax Rate: Full Weight (~8.33 Points)
- Rent-to-Price-Ratio: Full Weight (~8.33 Points)
- Median Home-Price Appreciation: Full Weight (~8.33 Points)
- Quarterly Active Listings per Capita: Half Weight (~4.17 Points)
- Vacancy Rate: Half Weight (~4.17 Points)
Note: This metric was calculated as follows: Vacant Housing Units / Total Housing Units.
Sources: Data used to create this ranking were collected from the U.S. Census Bureau, The National Association of Realtors, Council for Community and Economic Research and Insurance Information Institute.
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Based on my expertise in real estate trends and housing markets, particularly the economic dynamics affecting home prices and affordability, I can offer insights into the concepts covered in this article.
The article discusses the surge in home prices during the COVID-19 pandemic, highlighting the median sales price increase from $313,000 in Q1 2019 to $436,800 in Q1 2023. This price surge amid the pandemic has been significant and could be attributed to various factors, including limited housing supply, increased demand driven by remote work trends, and historically low interest rates, which have prompted more buyers to enter the market.
However, it also notes that while prices have risen, interest rates have climbed from a historic low of 2.65% in January 2021 to 6.39% in May 2023 for the average 30-year fixed mortgage. This steep increase in interest rates could impact housing affordability, potentially dissuading some buyers or making it harder for them to qualify for higher-priced homes.
The article identifies the most affordable cities for home buyers based on various metrics such as housing affordability, maintenance affordability, rent-to-price ratio, vacancy rates, and other factors. For instance, cities like Springfield, IL, and Detroit, MI, rank among the most affordable for housing, maintenance, and rent-to-price ratios, while cities like Los Angeles, CA, and Santa Monica, CA, are among the least affordable.
To assess housing affordability, metrics like the median house price to median annual household income ratio, cost of living, cost per square foot, real estate tax rates, and median home-price appreciation are considered. Additionally, factors like vacancy rates and quarterly active listings per capita are factored in to determine the overall affordability of a city for potential homebuyers.
The methodology used in this analysis involves comparing 300 U.S. cities across these key metrics, with different weightages assigned to each metric based on its significance in assessing housing affordability. The cities are categorized by size (large, midsize, small), and their scores are calculated based on the weighted averages across all metrics.
The article also includes expert opinions on various aspects related to home buying, such as considerations for choosing a city to settle down in, housing market predictions for 2023, the likelihood of home prices becoming more affordable, and optimal times for home purchases in 2023.
Overall, the comprehensive analysis aims to provide prospective home buyers with valuable insights into the affordability of different cities across the United States, considering various economic factors and housing market dynamics.
