Home prices in the U.S. rose a whopping 7.7% over one year by August 2022. Currently, the median home price in the U.S. is $389,500.
Adding insult to injury, the median income of households has only increased by a little over $6,000 in the last 20 years. Whereas the median home price increased by over $250,000 in the same period.
With the rise in work-from-home positions, people are looking to relocate to less expensive suburbs. Some prospective buyers also want to buy homes in these neighborhoods for investing.
The 10 most affordable cities for living right now are the following:
- Detroit, Michigan
- Cleveland, Ohia
- Toledo, Ohio
- Memphis, Tennessee
- Baltimore, Maryland
- Rochester, New York
- Milwaukee, Wisconsin
- Montgomery, Alabama
- Buffalo, New York
- Kansas City, Kansas
Let’s get into more detail about what each city offers and what career prospects it offers.
1. Detroit, Michigan
Median salary | $36,000 |
Median price of a home in 2020 | $59,000 |
Median real estate taxes | $1,268 |
Average income tax for the state | 4.25% |
Monthly utilities cost | $290 |
Annual cost of food | $8,277 |
Detroit tops our list because it’s one of the most affordable places to become a homeowner. This might come as a surprise because median salaries in Detroit are the lowest compared to any other city on the list. However, this gets balanced out by the equally low cost of buying a home.
An estimated 6% of the monthly wage goes towards mortgage payments for Detroit homeowners. And we are talking about the median earners here. At a median wage, this proportion is extremely low for a mortgage.
In the past, Detroit has seen its fair share of lows. The car industry faced a near collapse. Plus, there was out-migration to the suburbs due to racism. The Great Recession hit Detroit pretty hard as well. However, things have been looking bright for The Motor City for the last few years.
For the people in tech, Detroit is a very interesting location. Some of the biggest companies in the United States are headquartered here. This includes General Motors, Quicken Loans, and Ally Financial. Plus, the more tech-centric giants like Google, LinkedIn, and Microsoft also have offices here.
In fact, recently, Apple has also decided to make its mark in Detroit. It’s currently in talks to partner with Michigan State University to collaboratively open Apple’s first developer academy in North America. And you guessed it. It’s being launched in Detroit.
Belle Isle Park is a major attraction in Detroit. It was designed by the same group that conceived Central Park in NYC. Plus, Detroit offers a huge selection of diverse cuisine for all food lovers.
2. Cleveland, Ohio
Median salary | $47,268 |
Median price of a home in 2020 | $140,000 |
Median real estate taxes | $1,508 |
Average income tax for the state | 3.84% |
Monthly utilities cost | $187 |
Annual cost of food | $7,682 |
Cleveland is another great city to invest in. Not only is it affordable, but it’s also young! The median age of the city is around 36 years. That means many young people are coming to this city and plan to stay here.
Plus, 36 years is slightly below the national median age in the United States. So it’s one of the youngest cities in America.
Due to its young population, Cleveland is beaming with liveliness. Its close proximity to Lake Erie allows you to enjoy water sports. And you can have a lot of fun with boat parties.
Cleveland has a lot to offer for those who enjoy nature. You can find a far-reaching network of preserves all around the city. These preserves also encompass the beaches of Lake Erie, so you get a nice tropical-like view at the beach.
You can also get a lot of exercise in Cleveland with their system of the Cleveland Metroparks. They offer over 300 miles of different trails and activities. These include walking, horse riding, and cycling. And you get designated golf courses, picnic areas, nature centers, and fishing spots.
In addition to all the fun, Cleveland offers a solid economy. The Cleveland Innovation District project will create around 20,000 new jobs, an indicator of this strong economy. It’s a public-private partnership to build three hospitals and two universities. All of this is projected to happen within a decade.
Dena Cipriano, a senior communications and media relations manager for the Greater Cleveland Partnership, sheds further light on the blooming city of Cleveland. She states that Cleveland was not affected as badly by the pandemic as the rest of the United States. She backs this claim by stating how the Cleveland Metro has greater employment than the entire country.
Plus, Cleveland has the second-highest increase in the inflow rate of people who have worked in tech since the pandemic.
3. Toledo, Ohio
Median salary | $37,220 |
Median price of a home in 2020 | $95,000 |
Median real estate taxes | $1,541 |
Average income tax for the state | 3.84% |
Monthly utilities cost | $201 |
Annual cost of food | $7,682 |
Toledo is another great place to get your home. Its location puts it in an excellent spot, close to other major cities like Cleveland and Detroit.
Toledo is situated on the Western side of Lake Erie. It’s a one-hour drive to Detroit and a two-hour drive to Cleveland. Toledo is also close to Chicago, one of the biggest metropolitans in the United States.
Historically, Toledo hasn’t had a very great economy. It’s been stunted since the 1980s. However, the city has recently been making great progress toward improving its financial standing.
For Toledo, the Federal Reserve Bank of Cleveland states that construction employment growth has been the greatest. It was observed to be over 6.4% between 2018 and 2019.
The financial activities sector also saw fast growth in Toledo at 1.4%. This was greater than Ohio, which only experienced a growth of 0.6%. In fact, it was 0.1% greater than the entire United States, which experienced a growth of 1.3%.
Toledo also houses Bowling Green University and the University of Toledo. It has a further 36 universities within a 60-mile radius, giving it a huge concentration of skilled labor force.
Some of the biggest employers in Toledo are the Toledo Clinic, HRC ManorCare, and Owens Corning.