Getty Images; realtor.com
We live in a nation of sharply etched haves and have nots—and nowhere does that dividing line cut deeper than in the world of housing. Here at realtor.com®, we spend a lot of time chronicling the “haves,” those soaring, seductive, sought-after metros where inexorable rises in home prices are rivaled only by unstoppable increases in wages, jobs, bleeding-edge trendiness, and four-star fusion chefs.
And yet: Have you ever daydreamed about the home you could buy if you moved to one of the truly affordable parts of the country? Maybe you’d have an in-ground pool for mid-morning dips, a charming wraparound porch, space to really entertain. Or maybe you’d just be able to live well and sock away substantial savings … at the same time. And you could do this because you’d be paying just a fraction of what you would in the rest of the country.
So the bargain-loving realtor.com data team set out to find where a home buyer’s dollar will stretch the furthest. We looked at the country’s 500 largest metros and identified the 10 with the lowest median home prices. We limited the final results to no more than one per state.
So where do you go for homes that will cost you well below the $79,500 starting price of a Tesla Model X? The Rust Belt and Midwest, mostly—often areas that have experienced decades of industrial decline and population loss. A few of them are still struggling with the ills of urban decay, exacerbated by the Great Recession, including a couple with substantially higher-than-average crime levels. But generally, we found something else too: character. Community. Decent schools. Strong infrastructure. And some great old homes that were built and opened during the heyday of each region.
Before you let reality sink in and start fretting about such mundane details as where you’ll actually work if you move to one of these places, just think about all that money you’ll be banking.
Most affordable metros
Claire Widman
“There are a lot of people in that first-time home-buyer group looking for starter homes, and they can’t afford it in many top metros,” says Robert Silverman, professor of urban planning at the University of Buffalo in New York. “If they’re mobile, [they can move to] a smaller, affordable community with cheap homes and great amenities.”
Do you see yourself as a bargain hunter with a big-picture outlook and a willingness to pull up stakes? If so, grab your checkbook, and let’s head over to the places where homes are priced like sports cars. Maybe after a few years of deep-dive savings, you’ll be able to afford one of those too.
1. Marion, INMedian home price: $66,750
Median home price in the most affordable ZIP code (46953): $45,000
The Marion Community School of the Arts wall of fame
Marion Community School of the Arts
The dollar goes far in Marion. It’s only about an hour and a half northeast of Indianapolis, but homes cost about two-thirds less than in Indiana’s capital (where the median price is $209,950.) They’re also only about a quarter of the national median list price of $269,900. Now that’s a bargain!
Charmayne Saylors, a broker at FC Tucker Realty Center in Marion, says that for around $70,000, a buyer could get a three-bedroom home with a garage.
The low price of Marion’s homes is directly correlated with hiccups in the region’s historical wage growth. But that situation is improving at a steady clip.
Unemployment in Marion County is extremely low, at just 3.3% in November 2017, according to the U.S. Bureau of Labor Statistics. This Corn Belt metro’s economy is based heavily on (you guessed it) agriculture. But like most Midwestern cities, it still hosts some large manufacturing employers, including General Motors. In 2016, the car company announced that it would invest $91 million in the Marion Metal Center, which employs more than 1,000 workers and produces sheet metal for vehicles made across North America.
“We are starting to see people come back that have moved away,” says Saylors. “We have a whole market of people who return to the Midwest lifestyle and the affordability of our housing.”
Just check out this three-bedroom ranch priced only at $74,900. If you really want to splurge, go for this five-bedroom, 5,648-square-foot home for $599,900—the highest-priced home listing in Marion.
If those savings aren’t enough to make you consider renting a (discount) U-Haul, the state of Indiana also boasts the fourth-lowest property taxes in the nation, the ninth-lowest sales taxes, and the 10th-lowest income taxes. And you’ll be in fine company: Marion is the hometown of the cultural icon James Dean, as well as Jim Davis, the creator of Garfield. Yes, the cat.
2. Danville, ILMedian home price: $69,700
Median home price in the most affordable ZIP code (61832): $59,900
Vermilion County Courthouse in Danville
Google Maps
Danville lost thousands of manufacturing jobs over the decades when General Motors and General Electric plants shuttered. People moved away—and its population has steadily declined since 1970.
But that’s kept home prices down. Way down.
Fewer people mean fewer taxpayers. To make sure homeowners didn’t bear too much of the tax burden, the city shifted its source of revenue from property taxes to sales, liquor, and hotel taxes.
The community is still home to some big manufacturers, including a plant employing more than 350 workers operated by ThyssenKrupp, the German automotive parts maker. But there’s also a crime problem now. According to FBI stats, Danville had a rate of 808 serious crimes per 100,000 residents in 2016—more than double the national rate, and higher than Chicago’s.
Scott Eisenhauer has served as mayor of Danville for more than 15 years. During that time, he’s made a point to emphasize affordability as one of the town’s greatest attractions. He owns a 2,800-square-foot home he purchased in 2005 for $108,000.
“I watch HGTV, and hear them say they can get a 1,200-square-foot home for $400,000. A 1,200-square-foot home would be $30,000 to $40,000 in Danville,” he says. “And what you could get for $400,000 here is the mansion of your dreams. People here can have big-city amenities for a third of the cost of living.”
Don’t let Danville’s size fool you—there’s plenty to do. The city is home to the Danville Symphony Orchestra, and hosts the National Junior College Athletic Association Division II Men’s Basketball Championship each year.
And did we mention Dick Van Dyke grew up here?
3. Pottsville, PAMedian home price: $69,900
Median home price in the most affordable ZIP code (17901): $60,000
The Yuengling brewery in Pottsville, PA
Kublanov/Wikipedia CC; Angela Henderson/Wikipedia CC
What’s more American than sitting back and drinking a cold one or three in the comfort of your own home? Apart from being one of the most affordable housing markets in the country, Pottsville is also home to America’s oldest brewery. Heck, the Yuengling brewery here has been operated in the same building since President Andrew Jackson’s administration. Drink up!
But enough about the beer, let’s talk about those homes.
Buyers are particularly fond of the sprawling Victorians in Pottsville, which may date to the 1800s, says Erica Ramus, owner and broker at Ramus Realty Group.
“They have great old leaded glass [windows], fancy woodwork, and great Victorian touches. You get a lot of house for the price,” Ramus says. “I had one buyer who came from California, he saw [a Victorian] online. He closed on it without seeing it in person.”
Like many other Pennsylvania cities, Pottsville has watched manufacturing and mining jobs disappear through the years—which has contributed to keeping home prices down. Now the region is attracting large distribution centers. Walmart, Lowe’s, and Sara Lee have opened warehouses here in the past two decades. Last July, Tyson Foods announced it would invest $59 million to expand its Pottsville-based distribution center, with 114 new employees.
And if you get the big-city itch, New York City is three hours away. Or head southeast two hours for a real Philly cheese steak.
4. Bay City, MIMedian home price: $88,900
Median home price in the most affordable ZIP code (48708): $69,900
A home in Bay City, MI
Elizabeth W. Kearley/Getty Images
Sure, Tupelo, MS, has bragging rights as the birthplace of Elvis Presley, and Gary, IN, as the birthplace of Michael Jackson. But don’t count Bay City out. It will forever have a place in music history as the childhood home of the original Material Girl, Madonna.
Michigan was among the states hit hardest by the housing bubble and ensuing recession. In 2009 alone, the state lost nearly 300,000 jobs. Bay City, about two hours north of Detroit, felt the pain. Its unemployment rate still stands above 6%, more than two percentage points higher than the national average.
That prolonged downturn, coupled with years of manufacturing job losses, have made the metro’s home prices extremely affordable. So Chicagoans and Detroiters sick of the big-city costs and problems should give Bay City a look, says Trevor M. Keyes, president and CEO of Bay Future, a Bay County-based economic development organization.
And not all the big employers have left. DowDuPont has a massive presence in the Bay City metro, employing more than 5,000 people. Last year, the company announced it would invest $400 million in its manufacturing operations in the region.
“Bay City is a community that has a blue-collar mentality, with white-collar amenities,” Keyes says.
Here’s a recently remodeled three-bedroom home in the region. The price? $76,000.
5. Weirton, WVMedian home price: $90,000
Median home price in the most affordable ZIP code (43952): $85,000
Weirton, WV
Weirton Area Chamber of Commerce
This Rust Belt steel town’s population peaked in the 1960s. Then, like many other industrial cities, Weirton lost residents as steel and mining jobs disappeared.
“At its height, the Weirton Steel Corporation employed more than 12,000 employees in the region,” says Brenda Mull, president of the Weirton Area Chamber of Commerce. “But along with many other steel companies throughout the Midwest, it underwent years of decline and job cuts.”
In some Rust Belt metros, crime surged. But not here. In 2016, Danville’s rate of serious crimes was 159 per 100,000 residents—less than half the national average.
Recently, a revival in the oil and gas industry, including the expansion of fracking, has given the metro a big boost. “We have people coming in from Pittsburgh, people from all different areas, for jobs. A lot of young people are staying here now,” Mull says.
Robin Viola, owner and broker of Howard Hanna Mortimer Realty, says that while home prices are still affordable, properties are going off the market fast at all price points—a welcome surprise.
And if you want to relax, drink beer, and knock over some bowling pins, then head down to the Blue Steel Grill and Steel Valley Bowling Center in Weirton.
6. Pine Bluff, ARMedian home price: $94,500
Median home value in the most affordable ZIP code (71601): $25,200
Pine Bluff is home to Bayou Bartholomew, the longest bayou in the world.
Keith Yahl/Wikipedia CC
The more than 30 fishing tournaments hosted annually in the Pine Bluff region have earned it the nickname “Bass Capital of the World.” But the real catches here are the homes, with the median listing price just below $95,000. Compare that to the Arkansas capital of Little Rock, less than an hour’s drive north, where the median home price is $170,000.
On the downside, Pine Bluff has the highest crime rate on our list. According to the FBI, Pine Bluff had a rate of 909 serious crimes per 100,000 residents in 2016, compared to the national rate of 386.
While Pine Bluff comes with small-city home values, it can also boast some big-city features. The largest airport in Arkansas, the Bill and Hillary Clinton National Airport, is a 40-minute drive from downtown.
For fun, head to the Arkansas Railroad Museum, where you’ll find the last steam locomotive built by St. Louis Southwestern Railway (known as SSW).
7. Lima, OHMedian home price: $95,000
Median home price in the most affordable ZIP code (45801): $79,900
Downtown Lima, OH
Wikipedia CC
The M1 Abrams is the main battle tank of the U.S. Army. It’s been used in the Gulf War, and the wars in Iraq and Afghanistan. The sole producer of those tanks is in Lima, OH. But that badge of honor hasn’t stopped Lima from facing the same economic woes as other Rust Belt cities. Indeed, the city’s population has fallen from about 54,000 in 1970 to just above 37,000 in 2016.
Yet the town still has a high-end market. Look no further than this seven-bedroom, nearly 10,000-square-foot home listed for $725,000. Can you imagine how much it would go for in a city like Atlanta or Boston?
Lima has some local gems for those who want to embrace small-town life. Kewpee Hamburgers is a joint that dates back to 1928 and is cherished throughout the Buckeye State. A regular burger costs just $2.20. Dave Thomas, founder of Wendy’s, whose headquarters are in Dublin, Ohio, once said Kewpee inspired him to go into the business.
8. Elmira, NYMedian home price: $109,000
Median home price in the most affordable ZIP code (14904): $59,900
Elmira, NY, along the Chemung River
DenisTangneyJr/iStock
New York City is known for multimillion-dollar co-ops and cramped apartments, but a four-hour drive upstate takes you to Elmira, where the typical home is priced at under $110,000.
Elmira comes with its own charm. Take the nearby wineries, like StoneyRidge Orchard and Winery in Erin—ask for the fruit wines or apple cider.
“Elmira is a smaller community, with a lot of character—it’s just a nice place to live,” says University of Buffalo’s Silverman. “It has that rural, small-town, historic vibe to it.”
The last time Elmira’s population increased was in 1950. You could say the community has hit some rough patches, especially after factories for companies like General Electric and Westinghouse shut down in the 1970s. But homes are a big-time bargain here. Take this three-bedroom, two-bath home priced at $85,000.
9. Topeka, KSMedian home price: $109,000
Median home price in the most affordable ZIP code (66616): $61,000
Historic downtown Topeka
peeterv/iStock
There is a good chance some of your favorite guilty pleasures come from Topeka. In 2015, Mars, the makers of M&M’s and Skittles, announced the expansion of its Topeka factory. Then, last year, it announced it would invest $55 million and hire 60 new full-time employees and start producing Twix candy bars at its Topeka plant. Go, Twix!
Topeka stands out as being the only metro among the top 10 that hasn’t experienced decades of population decline. It has climbed from about 120,000 residents in 1990 to 127,000 in 2016. That’s not crazy growth, but it is enough to keep home builders busy.
As the capital of Kansas, Topeka benefits from lots of state government jobs, nearly 9,000.
And if you’re looking for some fresh produce to cook in your big new kitchen, then head over to the Downtown Topeka Farmers Market, in operation since World War II.
10. Cumberland, MDMedian home price: $110,000
Median home price in the most affordable ZIP code (21502): $94,900
Cumberland, MD
WilliamSherman/iStock
If you’re a soon-to-retire federal government worker in Washington, D.C., and looking to escape the capital’s high costs after you hang up your hat, take your pension and head two hours northwest to Cumberland.
Cumberland sits in the Appalachian Mountains in Maryland—that long, oddly shaped western part of the state. Here the median home price is about a quarter of the $415,000 median cost of becoming a homeowner in the nation’s capital.
Those savings will free up your budget for that Honma Golf club set made of 24-karat gold you’ve always wanted. Grab those clubs and head over to Rocky Gap Lodge & Golf Resort in Cumberland. You’ll have no trouble affording greens fees.
The post Tired of Big-City Squeeze? Score a Bargain in America’s 10 Cheapest Housing Metros appeared first on Real Estate News & Insights | realtor.com®.
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