WalletHub ranked Flint, Michigan as the city with the lowest costs of living, and the most affordable prices for homes in relation to residents’ income. Flint’s median home price is just $61, but its rent to price ratio is high. It shows that renting a home can be more expensive than buying one. Read on to discover which cities made the top 10.
Cost of home ownership in the U.S. has skyrocketed. The Federal Reserve Bank of St. Louis has released data that shows the cost of homes in the U.S. is soaring. median sales price From $313,000 in the first quarter of 2019, the average home price is expected to rise to $416.900 by the end of 2025. And as WalletHub notes, the increase in 30-year fixed mortgage rates is not included. mortgage rate The rate of inflation is expected to rise from 2.65 per cent in January 2020 to 6.87 per cent in January 2025. There are still some great deals in certain areas of the nation.
WalletHub published its latest report on May 20 identifying the affordable cities for homebuyers. The company compared the affordability of housing, home insurance costs, city cost of life, and real estate taxes of 300 U.S. towns across 10 key metrics. Flint, Michigan came out as the winner.
According to the report, “Flint boasts the lowest COLI (cost of living index) in the nation and the most affordable housing prices relative residents’ income.” The report stated that “it also has the cheapest median home price, only $61, per square foot.” Put that into perspective. The price in the most costly cities is over $1000 per square foot.”
Flint has a high ratio of rent to price, which means it is “cheaper” to buy than to rent property.
The report stated that part of the city’s affordability may be due to its water crisis. But he added that Flint’s drinking-water has been compliant with EPA standards now for six years, making it a wonderful place to visit.
We have new infrastructure. Sheldon Neeley, Mayor of the City of New York shared in 2024. “Residents in this community will never have to drink Flint River water again.”
Flint is not the only Michigan city at the top: Detroit. The median price per square feet in Motor City is only $87.
Due to the fact that people left Detroit during the last financial crisis, more than 22 percent of the housing stock in the city was vacant. This makes Detroit a buyers market, compared to cities where houses are scarce.
Rounding out the top 3 is Pittsburgh, PennsylvaniaThe study also found that the rent-to price ratio of Steel City was the highest in the country. This means that purchasing a home would be a wiser investment than renting. Steel City also does well in the housing affordability section, with its median home price being around 3.8x the median household’s income.
Chip Lupo is an analyst for WalletHub and he noted that there are many factors to consider when choosing a place to live. At least, this study gives a good idea of where to begin.
Lupo says that the price of a house alone is not a good indicator for affordability. You should also consider the cost of living in the area and how that compares with the average home price.
You can see the complete study rankings for all 300 cities by clicking on wallethub.com.
