Buying a home has become increasingly difficult for many Americans. High mortgage costs and limited availability of houses have made owning property seem like an unreachable goal for many.
While some states and cities are very expensive for homebuyers, there are others that provide more affordable options.
Housing Prices Vary Across the Country
Home prices differ depending on location. In some cities, the costs are sky-high, but in others, purchasing a house is much more manageable.
Factors like local demand, housing supply, and community conditions influence the affordability of homes.
Current Challenges for Homebuyers
Buying a house is not easy right now. According to a study by Realtor.com, the income needed to afford a three-bedroom home is calculated under these conditions:
- A 10% down payment.
- A 30-year fixed mortgage rate of 6.65%.
- Spending no more than 30% of household income on housing (including taxes and insurance).
This study highlights a few states with homes priced under $100,000, offering opportunities for buyers looking for cheaper options.
These states include Alabama, Kentucky, Pennsylvania, Oklahoma, Illinois, Arkansas, Mississippi, Missouri, Kansas, Iowa, Indiana, Louisiana, Michigan, Ohio, and West Virginia.
Check out: Quick Guide to the Best First-Time Home Buyer Loans in 2025
Michigan: The Best State for Affordable Housing
WalletHub analyzed various factors like cost of living and home prices compared to income to find the most affordable cities for homebuyers in the U.S. Michigan stood out, especially Flint, which ranked #1 on their list.
Homes in Flint cost about $61 per square foot, and nearly 21% of the housing inventory is available for purchase, making it a top choice for buyers seeking affordable housing.
Detroit, Michigan, came in second, with very low home prices and a large number of houses available—22% of inventory is up for sale.
Other Affordable Cities
Pittsburgh, Ohio, ranked third on the WalletHub list, offering homebuyers another location with reasonable pricing and good availability.
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