As Americans were devastated by an epidemic, they desired to relocate to areas with more space for working and exercising free from social isolation. This drove up home prices as eager buyers purchased houses en masse at prices far over market costs – thus creating the ultimate seller’s market.
Real estate markets across several cities have now come to a grinding halt due to rising interest rates causing homes to be more costly for many potential buyers.
Realtor.com reported that more than 20% of houses on the market saw price reductions during January. Though home prices may still not be affordable when compared with pre-pandemic costs, there may still be opportunities to find houses at more reasonable costs in certain locations.
GOBankingRates, as well as other real estate conducted an investigation to identify which cities offer the lowest home price averages and meet specific criteria in order to be on this list. All properties on it must also meet these parameters while being priced lower than the state median average.
Are You Thinking About Purchasing a Home but Can’t Spend Too Much?
Below is a List of 15 Major Cities where There May Be Affordable Options
Midland, Texas
Nestled just northeast of the more well-know Odesa, this Texas gem is the original homestead of George W. Bush, as well as a critical part of the Permian Basin, which was (is) one of the Texas oil industry’s first groundbreaking beginnings. Another industry that trends similarly to oil, real estate in Midland is more than ripe for the picking. According to GoBankingRates, average home growth value is over $18,000 vs. the state average.
Englewood, Ohio
Just northeast of Dayton, the not-so-well-known Englewood, Ohio has become the breeding ground for some of the most desirable real estate in Ohio. Actors, sports heroes and comedians such as Dave Chappelle, Labron James and others have spent years redeveloping and rebuilding Ohio, and in doing so, Ohio’s property values statewide have begun to blossom. In just one year’s time, Englewood has shown a year-over-year value increase of nearly $15,000.
Cicero, Illinois
Another fast-growing city of the Midwest is Cicero, Illinois. Just southeast of the windy city of Chicago, Cicero has become a short-term safe heaven for real estate buyers and investors. While the fabled Al Capone did use it as a hub for his organization, the present-day crime rates are astoundingly low, and the average year-over-year return on investment is high (according to several sources, Cicero has witnessed overall home values increase by more than $10,000 annually).
Hastings, Minnesota
One of few Midwest cities that spans two counties, Hastings, Minnesota is just Southeast of Minneapolis and sits on the southside of the Mississippi River. The city is less developed than many in Minnesota and therefore, ready for buyers and investors to do so. While the average home price is in the low 300’s, the statewide average for home growth is just over $10,000 annually, and the Hastings area is nearly twice that.
Swartz Creek, Michigan
Just northwest of famous automotive city, Detroit, Swartz Creek is a small but growing suburb of Flint, Michigan. With a population of a little over 5,000 and a relatively low crime rate, Swartz Creek is ideal for families looking to upgrade their existing home or even invest in a summer home (Swartz Creek is centrally located in between the often-vacationed Great Lakes). The average home value for Swartz Creek substantially lower than the national average home price of $380,000, coming it at about $200k. That fact, paired with an increase of over $12,000 annually makes Swartz Creek more than a desirable location to buy, build or develop.
Brookings, South Dakota
Moving further west has often been of interest to new homebuyers and builders. If you want a new opportunity, in a new state but, want to “stay closer to home,” in a sense, you may want to look no-further than the city of Brookings, due-north of Sioux Falls, South Dakota. Home to South Dakota State College, Brookings is the epidemy of a blooming college town. That said, Brookings is also home to a lower-cost living, reasonable home prices (an average of less than $300k), and an astounding year-over-year home value increase of near $20,000.
Santa Fe, Texas
Hugging the coast of the Gulf of Mexico, just south of Houston, Santa Fe, Texas is somewhat a new-kid of the Texan block (didn’t become an official city until the 70’s). Named for the railroad that runs alongside it, Sante Fe is quickly becoming a real estate investor’s must-have. With a median home price of just under $300k and an annual home increase of almost $20,000, Santa Fe is an ideal spot for those looking to migrate to warmer climates, stay and/or become close to the beach, as well as a major metropolitan city in Houston.
College Park, Georgia
Nearly a “stone’s throw” south of Atlanta, College Park Georgia has been described as “quite a nice place to live.” The city has a mild population, just under 15,000, and is known to many as an urban-suburban mix with most residents renting their homes (great area for potential development) and several city parks throughout. That, paired with the fact that an international airport is no-more than 15 to 20 minutes away and average listing price for a home is just under $300k makes College Park a hot spot (which is probably why the annual home value increase is over $23,000 annually!!).
Columbus, Nebraska
If you want to meet the nicest people on earth, look no further than Nebraska. Columbus is just as nice! While not the largest city in Nebraska (10th largest), Columbus is family friendly, and less than a few hours from Omaha and Lincoln. In addition, the city tends to put the majority of its funding into infrastructure, new businesses and more. With homes and properties listed in the modest range of $230k, Columbus may more sense than you think (annual home values increased by over $18,000 in the last year alone).
Jefferson, Wisconsin
The state well-know for their cheese and football is also a potential hot real estate destination. Jefferson, which is east of Milwaukee and west of Madison, Wisconsin is quickly becoming a best-kept-secret of this north Midwest state. The home prices are very reasonable at just under $250k and the annual home value has increased by roughly $15,600 on average. If you were looking for a diamond-in-the-rough, Jefferson may be just that. Good school, low crime and relatively easy access to major metropolitan locations makes it a must-see.
Forest Park, Ohio
Roughly an hour north of Cincinnati, the city of Forest Park, Ohio is a perfect place to buy a home and settle down for the foreseeable future. About one thousand acres larger than that of Central Park, New York, this city is home to arguably the most scenic views on our list. With a median home price of $246k and an annual value increase of almost $17,000, in an up-and-coming location, it just makes sense to give it a look.
Laplace, Louisiana
A suburb of New Orleans, Laplace is a “census-designated” place in a Baptist based location, just off the coast of Lake Pontchartrain, New Orleans. Known for its southern hospitality and deep-rooted culture, this Mississippi River town has all the charm of a small town, and the location to experience just about anything! While inventory is slim at the moment, so are the prices (coming in at roughly $171k on average).
Louisville, Ohio
A suburb of Canton (hall of fame, famous sports town), Louisville, Ohio is another quaint place to call home for anyone interested in a reasonably-priced home (average price is $196k) with reasonable growth and up-side (average home value growth was $15,585 in the last year alone). Southeast of Cleveland and Akon makes it somewhat simple to reach full-on civilization. Make no mistake, this is likely better for an investor or developer, as multi-family homes are the newest real estate trend.
Portland, Tennessee
Cities like this offer safety, community, above-average school systems and ownership to the middle-class citizen. It’s an All-American kinda city. Just northeast of Nashville, Tennessee, the city of Portland is a new heaven for first-time homebuyers and potential investors alike. The average cost of a home is just over $275k, and the average rate of return for that same home is over $20,000. Close to another amazing All-American city, Portland is one of our favorite to find a steal of a deal!
Plymouth, Wisconsin
Originally the location of the National Cheese Exchange, Plymouth, Wisconsin is the city that brings pride to their entire state. While they have conceded their event, they are formally known as “The Cheese Capital Of The World,” and are home to the four major cheese companies in the United States, Sargento begin one of them. Regardless of it’s fame and former glory, the real estate in the capitol of cheeses can be had for less than a modest $300k. The average return on resell is roughly $15,000 annually.
