Top 25 Most Affordable Cities For Housing

Published November 15, 2021

Written by Francesca Ortegren

If the prospect of buying a house has seemed more and more difficult lately, it’s not just you. Buying a house, even if you use a realtor, has objectively become steadily harder over the years, the last few years especially.

A recent study by Real Estate Witch uncovered the many reasons why the market has become so challenging and also highlighted areas of the U.S. where housing is still affordable.

So, why is it getting more difficult to buy a house? To put it simply, home prices have gone up a lot more than wages. Adjusting for inflation, home values have increased 118% since 1965, while wages have only increased 15%.

And that trend is only accelerating. Since the 2008 financial crash, when home values and household incomes both crashed, home values have gone up 25%, while household incomes have only increased by 8%.

How unaffordable has the market gotten? Experts recommend a house-price-to-income ratio of 2.6 for a home buyer to comfortably afford their down payment, miscellaneous transaction costs, and mortgage payments. Based on 2021 data, the average house-price-to-income ratio in today’s America is 5.4, or more than double the suggested level.

Still, there’s some good news in the report. There are still places in the U.S. where homes are affordable — and some where they’re very affordable. Read on for the definitive list of the 25 most affordable U.S. cities for housing!

25. Dallas-Fort Worth, Texas

Dallas offers a great mix of urban and suburban living, with a dense city center, surrounded by rings of flourishing suburbs.

Dallas also offers great all-around value — not only is housing relatively affordable, with an average household income of $89,000 and an average house-price-to-income ratio of 3.3 — but the city also ranks highly in quality-of-life measures such as weather, job market, and recreation.

24. Atlanta, Georgia

Atlanta has been one of the fastest-growing U.S. cities for several years, but it’s still highly affordable, thanks to its sheer size and a huge amount of housing stock. The city also has a ton of cultural advantages to offer, such as great weather, a ton of public green space, a well-known music scene, and major sports teams.

Atlanta has an average home value of $286,060, which is just a hair over the national average; combined with an above average household income of $86,200, Atlanta sports a downright affordable house-price-to-income ratio of 3.3.

23. Virginia Beach, Virginia

Virginia Beach offers Southern culture, miles of beaches, and a booming economy supported by the largest concentration of military personnel outside of the Pentagon. It also offers a relatively low cost of living, especially when compared to nearby Washington, D.C., or even Baltimore.

Virginia Beach has an average home value of $276,437 and an average household income of $84,500, for a very reasonable 3.3 house-price-to-income ratio.

22. San Antonio, Texas

Cozy San Antonio offers a low cost of living, year-round mild weather, and a proud tradition of celebrating the city’s Spanish heritage. Often overshadowed by other Texas cities such as Austin and Dallas, San Antonio offers great livability at a great price point.

San Antonio’s average home value is $239,180, which is significantly below the national average, with an average household income of $74,100. That equates to a manageable 3.2 house-price-to-income ratio.

21. Minneapolis-St. Paul, Minnesota

Minneapolis is a city with a lot to offer, from easy access to nature (it’s located in the Land of 10,000 Lakes) and a cosmopolitan downtown to a flourishing arts scene and historic mansions. Many people have observed that if not for the brutal winters, Minneapolis would be one of the most popular cities in the U.S.

Minneapolis-St. Paul has an average home value of $335,377, which is higher than the national average; however, the city also has a relatively healthy average household income of $104,900, which brings its house-price-to-income ratio to a healthy 3.2.

20. Baltimore, Maryland

This resurgent East Coast port town has a ton of blue-collar charm, historic row houses, and a quirky arts scene. Its close proximity to Washington, D.C., coupled with its very reasonable cost of living, has made it a popular commuter town for some D.C. professionals.

Baltimore’s home prices have risen a lot in recent years, but they’re still just a bit over the national average, at $333,903. The city’s average household income is $105,100, bringing the house-price-to-income ratio to a very moderate 3.2.

19. Houston, Texas

This sprawling Texas metropolis offers balmy weather, a low cost of living, and a strong, diversified economy led by the oil and gas industries.

Houston’s average home value is quite a bit below the national average, coming in at a reasonable $247,077, and average household income is $79,200; that comes out to a very manageable house-price-to-income ratio of 3.1.

18. Richmond, Virginia

The capital of Virginia offers southern charm to match its historic 19th century homes as well as the walkability and sophistication of a college town — Richmond is home to Virginia Commonwealth University and the University of Richmond.

Richmond’s average home value is just a hair above the national average, at $280,618, and the average household income in Richmond is $90,000, which is significantly above the national average. That comes to a healthy house-price-to-income ratio of 3.1.

17. Philadelphia, Pennsylvania

The City of Brotherly Love offers history on every corner, blue collar charm (it’s the setting of “Rocky,” after all), passionate sports fans, and the best cheesesteaks in the country. Philadelphia has been getting more expensive, as the city’s undergone a big wave of revitalization, but it’s still affordable compared to other big East Coast cities.

Philadelphia’s average home value is slightly higher than the national average, at $291,747, as is its average household income, at $94,500. Putting those numbers together produces a moderate house-price-to-income ratio of 3.1.

16. Columbus, Ohio

Home to The Ohio State University, Columbus combines the culture of a college town with big-city amenities such as museums, shopping, and nightlife. It also features a cost of living that’s quite a bit lower than most major cities.

The average home value in Columbus is slightly below the national average, at $249,521, and the average household income in Columbus is quite a bit higher than the national average, at $83,800, which produces a very affordable house-price-to-income ratio of 3.0.

15. Chicago, Illinois

The Windy City offers diversity, history, and the well-known Midwestern friendliness, along with all the major amenities you’d expect from the third-largest city in the U.S. That said, it’s also pretty affordable, with a cost of living far below most cities of a comparable size.

Chicago’s average home value is slightly below the national average, coming in at $270,083, though its average household income is slightly higher than the national average, at $93,200, combining for a very reasonable house-price-to-income ratio of 2.9.

14. Milwaukee, Wisconsin

Milwaukee is undergoing a quiet resurgence, with new construction going up regularly, and people moving there from all over the Midwest. Located on Lake Michigan, Milwaukee offers a very reasonable cost of living as well as Midwestern neighborliness.

Milwaukee’s average home value is slightly below the national average, at $240,852, and its average household income is slightly higher than the national average, coming in at $84,400. These two figures combine to produce a very affordable reasonable house-price-to-income ratio of only 2.9.

13. Kansas City, Missouri

With a population of just over two million, Kansas City has a historic jazz scene, a booming arts culture, riverboat casinos, and an extremely reasonable cost of living.

Kansas City’s average home value of $243,500 is well below the national average, and its average household income is slightly above average, coming in at $86,600. The bottom line? A very affordable house-price-to-income ratio of 2.8.

12. Louisville, Kentucky

Louisville has been steadily gentrifying for years now, as people flock to the city’s Southern charm, laid-back vibe, and low cost of living.

Even after several years of price increases, Louisville’s average home value still sits significantly below that national average, at only $207,318, and the city’s average household income is just above the national average, at $76,900. Those numbers combine for an extremely affordable house-price-to-income ratio of 2.7.

11. Memphis, Tennessee

Laid-back Memphis combines Deep South charm with small-town intimacy — a pretty impressive feat, considering its cultural prominence as the birthplace of rock and roll and home of the blues, not to mention a center of the civil rights movement. Memphis also offers a very low cost of living.

The average home value in Memphis is significantly lower than the national average, coming in at only $184,921. Memphis has an average household income that’s almost exactly the national average, at $68,700, which translates to an extremely affordable house-price-to-income ratio of 2.7.

10. Indianapolis, Indiana

Indianapolis has the friendly openness of the Midwest, a booming job market, and a surprisingly diverse culture. Add in a low cost of living, and you have a hidden gem of the heartland.

In Indianapolis, the average home value is $218,531, which is significantly lower than the national average. However, household income is above the national average, coming in at $81,600, which equates to a super affordable house-price-to-income ratio of 2.7.

Related Article: The Best Questions to Ask a Realtor

9. Buffalo, New York

This Rust Belt city on Lake Erie was once a booming industrial hub but saw a steep decline in the 20th century. Redevelopment and a reviving economy, however, has made Buffalo a destination for many East Coast urbanites looking for affordability.

Buffalo’s average home value is far below the national average, coming in at an extremely affordable $209,999; however, average household income in Buffalo, at $78,900, is well above the national average. The result? An extremely affordable house-price-to-income ratio of 2.7.

8. Hartford, Connecticut

Historic Hartford offers grand 19th century architecture, easy access to hiking and skiing in the Connecticut River Valley, and a strong job market. Though the cost of living is slightly higher than the national average, the city still offers great value.

In Hartford, the average home value is just a hair above the national average, coming in at $276,637. However, the average household income is significantly greater than the national average, at $104,300. Put those two figures together, and you get a very affordable house-price-to-income ratio of 2.7.

7. Detroit, Michigan

Once one of the most vibrant cities in the U.S., Detroit began a steep decline in the 1970s that culminated in the city itself declaring bankruptcy in 2013. Since then, Detroit has started a steady revitalization, as the deserted city center, long abandoned for the suburbs, has been rehabbed, renovated, and reoccupied by new Detroiters.

Even after a decade as one of the buzziest housing markets in the U.S., Detroit’s average home value is still well below the national average, coming in at only $212,160. With an average household income of $80,000, that translates to affordability and a house-price-to-income ratio of 2.7.

6. Cincinnati, Ohio

The second of three Ohio cities on this list, Cincinnati is arguably the least well-known. Combining a low cost of living with one of the best education systems, from preschool through university, of any U.S. city, Cincinnati offers great value for families looking for a sophisticated, affordable place to settle down.

Cincinnati’s average home value is significantly lower than the national average, coming in at $221,436, and the city’s average household income of $85,400 is quite a bit higher than the national average. That makes Cincinnati the first city on this list with a house-price-to-income ratio (2.6) that actually meets expert recommendations.

5. Birmingham, Alabama

Alabama’s biggest city offers green space, Southern charm, plenty of history, mild year-round weather, and an extremely low cost of living. What’s not to love?

Birmingham’s average home value is $197,416, which is significantly lower than the national average. On the other hand, Birmingham’s average household income is quite a bit higher than the national average, coming in at $78,000. The result? A super affordable house-price-to-income ratio of 2.5.

4. St. Louis, Missouri

This large Midwest city has a strong, diversified economy (tech and manufacturing are both core industries here), heartland charm, and a super low cost of living.

The average home value in St. Louis is $208,661, which comes in quite a bit lower than the national average. Combine that with an average household income ($84,900) that’s significantly higher than the national average, and you get an exceedingly affordable house-price-to-income ratio of 2.5.

3. Oklahoma City, Oklahoma

Oklahoma City offers rustic cowboy culture, vibrant nightlife, and friendly Midwestern charm, all in one intriguing package. It also offers a fantastically affordable cost of living.

Oklahoma City’s average home value is far below the national average, at $179,582, and its average household income is a bit above the national average, coming in at $73,200. Combine those figures, and you get an extremely affordable house-price-to-income ratio of 2.5.

2. Cleveland, Ohio

The third Ohio entry on this list is another former Rust Belt boomtown that’s slowly emerging from a late 20th century funk. With a resurgent economy driven by the tech and medical sectors coupled with a low cost of living, Cleveland offers great value — and a bright future.

Cleveland’s average home value is $186,535, which is quite a bit lower than the national average. Average household income in Cleveland is a hair above the national average, coming in at $78,600. The result? An extremely affordable housing market, with a house-price-to-income ratio of only 2.5.

1. Pittsburgh, Pennsylvania

The most affordable city on this list — and in the U.S. — is yet another resurgent Rust Belt city. Pittsburgh was once a leader in steel production (hence the nickname “Steel City”) but is reinventing itself as a Midwestern tech hub. With more green space per capita than nearly any other American city and a rock bottom cost of living, Pittsburgh has earned the top spot on this list.

Pittsburgh features a very low average home value of $190,081, which is significantly lower than the national average. Household income in Pittsburgh averages $84,800, which is quite a bit higher than the national average. Combine the two figures and you get the most affordable city in the U.S., with an unbelievably low house-price-to-income ratio of 2.2.