Affordable Housing: A Rare Gem in Today’s Market
The COVID-19 pandemic has led to a significant shift in the US housing market. With mortgage rates soaring above 6% and median home prices reaching $425,000, finding a good deal has become increasingly challenging. However, a recent report from Realtor.com has identified the top five cities in the US where median home prices remain below $300,000.
A Glimmer of Hope for Homebuyers
According to Ralph McLaughlin, a senior economist at Realtor.com, “There are isolated pockets of places that still remain relatively affordable on a national perspective.” These affordable cities are primarily located in the Northeast and Midwest, with Pittsburgh ranking as the most affordable city with a median list price of $245,000.
The Rise of Affordable Cities
Pittsburgh, one of the country’s largest metro areas, has seen a shift in negotiating power from a seller’s market to a neutral one. McLaughlin notes, “We are seeing inventory continue to pile up, homes move much slower than they did over the last few years, and sellers cutting prices.” Detroit, Michigan, ranks as the second most affordable city, with a median list price of $277,000.
Remote Workers Can Reap the Benefits
In cities like Detroit, potential homebuyers with flexibility can enjoy a high quality of life. McLaughlin says, “If you’re taking a remote job income from a place like New York, San Francisco, LA, or D.C., you could go a very long way in this market.” With the rise of remote work, affordable cities like Detroit and Pittsburgh may become increasingly attractive to those looking to relocate.
A Buyer’s Market
The current housing market may be challenging, but it’s not impossible to find a good deal. By exploring affordable cities and being flexible, homebuyers can still find a gem in today’s market. As McLaughlin notes, “These are all places that over the last 30, 40, 50 years have seen a downward trend in job growth and population growth, which tends to put downward pressure on prices.”
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