To measure this, we will look at house prices and salaries.
General description
Of course, a low price doesn’t necessarily mean a great deal. For more information on how to find great deals, check out my Master the deal course.
This data is from May 2024 and comes from the National Association of Realtors (NAR), the Zillow Home Value Index, the US Census Bureau, local economic development reports, and the Bureau of US Labor Statistics (BLS).
There are many smaller cities that are even more affordable in many areas of the country. It may surprise many people, but people who earn lower salaries are actually more likely to buy a home than many who earn much more in expensive areas.
Top Ten Most Affordable Cities (Salaries and House Prices)
1. Detroit, Michigan
Detroit has experienced a remarkable comeback over the past decade. The city is known for its affordable real estate market, with a median home price of around $70,000.
The average salary in Detroit is approximately $36,000.
With revitalization projects underway and a growing tech scene, Detroit is becoming an attractive option for first-time homebuyers and investors alike.
2. Cleveland, Ohio
Cleveland offers a combination of affordable housing and vibrant cultural life. The median home price in Cleveland is approximately $85,000.
The average salary in Cleveland is around $38,000.
The city’s diverse economy, driven by the healthcare, education and manufacturing sectors, makes it a target for real estate investment.
3. Pittsburgh, Pennsylvania
Pittsburgh is another city where affordability meets opportunity, with a median home price around $150,000.
The average salary in Pittsburgh is approximately $42,000.
Pittsburgh offers a strong job market, particularly in technology, healthcare, and education. The city’s rich history and growing infrastructure add to its appeal.
4. Indianapolis, Indiana
Indianapolis combines affordability with a high quality of life. The average price of a home is around $175,000.
The average salary in Indianapolis is about $44,000.
The city is known for its strong job market, excellent schools, and vibrant cultural scene. Indianapolis may be ideal for families and investors seeking long-term growth.
5. Buffalo, New York
Buffalo is experiencing a resurgence, with a median home price of approximately $130,000.
The average salary in Buffalo is about $40,000.
The city’s affordable cost of living, along with its strong job market in healthcare and education, makes it an attractive location for home buyers.
6. Memphis, Tennessee
Memphis offers an affordable housing market with a median home price of about $120,000.
The average salary in Memphis is approximately $37,000.
Known for its rich musical heritage and vibrant culture, Memphis also has a strong economy driven by the transportation, healthcare, and education sectors.
7.Birmingham, Alabama
Birmingham combines affordability with economic growth. The average price of a home is around $160,000.
The average salary in Birmingham is about $38,000.
The city’s economy is diverse, with strong sectors in finance, healthcare and manufacturing. Birmingham’s southern charm and historical significance make it a desirable place to live.
8. Kansas City, Missouri
Kansas City offers affordable housing with a median home price of approximately $190,000.
The average salary in Kansas City is around $45,000.
The city is known for its strong job market, particularly in the finance, healthcare and engineering sectors. Kansas City’s thriving arts scene and friendly community add to its appeal.
9. Oklahoma City, Oklahoma
Oklahoma City offers affordable housing with a median home price of approximately $160,000.
The median salary in Oklahoma City is approximately $40,000.
The city has a growing economy driven by the energy, aerospace and biotechnology industries. Oklahoma City’s low cost of living and family-friendly environment make it a great place to buy a home.
10. St. Louis, Missouri
St. Louis rounds out our list with a median home price of around $150,000.
The average salary in St. Louis is about $41,000.
The city offers a diverse economy with strong healthcare, education and manufacturing sectors. St. Louis’ rich history, cultural attractions, and affordable real estate market make it an interesting place to invest.
This table summarizes the information here. The affordability index is wages divided by the price of housing. The higher the affordability index, the more affordable it is.
| City | Average house price | Average wage | Affordability Ratio |
|---|---|---|---|
| Detroit, Michigan | $70,000 | $36,000 | 0.51 |
| Cleveland Ohio | $85,000 | $38,000 | 0.45 |
| Buffalo, New York | $130,000 | $40,000 | 0.31 |
| Memphis, Tennessee | $120,000 | $37,000 | 0.31 |
| Pittsburgh, Pennsylvania | $150,000 | $42,000 | 0.28 |
| St. Louis, Missouri | $150,000 | $41,000 | 0.27 |
| Indianapolis, Indiana | $175,000 | $44,000 | 0.25 |
| Oklahoma City, Oklahoma | $160,000 | $40,000 | 0.25 |
| Birmingham, Alabama | $160,000 | $38,000 | 0.24 |
| Kansas City, Missouri | $190,000 | $45,000 | 0.24 |
Conclusion
These ten cities offer some of the most affordable real estate markets in the U.S., each with its unique combination of economic opportunities, cultural attractions and quality of life. Whether you’re a first-time homebuyer or an investor looking for promising real estate markets, these cities provide a great starting point.
What do you think of this list? Let me know below in the comments.