Why do people invest in real estate? To create and build wealth for themselves, their families, and the future of such. The common theme among many investors (wealthy or just starting out) is, “Why pay someone else’s mortgage and help grow their equity or portfolio (through renting) when you can invest the same amount of money or less (in many cases) and improve your own standing?” As cliché as that thought is, it isn’t wrong. Many (if not most) of the world’s millionaires and billionaires made their initial mark through real estate sales, investments, etc. That said, the world is getting smaller by the second; real estate isn’t as readily available, and in many cases, the average consumer is priced completely out of the market they presently reside in.
Our team at MyState MLS looked into over 100 major metro areas to help you identify the top 10 most affordable locations to get you back in the real estate dealing groove. We reviewed a slew of factors, ranging from affordability to earning potential within realistically close proximity of said cities. The following locations we’ve listed represent what we believe are undervalued markets and are not short-term but long-term opportunities to build wealth.
Detroit, Michigan
It is no surprise that the Motor City tops the list of the most affordable cities to purchase a house or real estate. While the median income is among the least cities listed on this list that are affordable as well as the home costs. Indeed, the median-earning residents in Detroit will pay just 6 percent of their income per month for mortgage payments that are quite low.
While Detroit has faced a number of major setbacks through the years–a deteriorating auto industry, the out-migration of people who are racist to suburbs, and the deterioration of neighborhoods resulting from the Great Recession, Detroit has seen a rise in recent years. Major corporations like General Motors, Ally Financial, and Quicken Loans are headquartered in Detroit. The tech industry also has a presence in the city, such as Microsoft, Google, and LinkedIn. Recently, Apple announced it would collaborate in partnership with Michigan State University and open its first North American developer academy in Detroit.
Average Home Listing Price: $270,000
Average Salary: $36,000
Cleveland Ohio
Cleveland isn’t just an economically-sound city it’s also a young city, as well. The average age of residents is about 35, and that’s less than the median of the nation. What is what makes Cleveland unique is its energy. The city is situated in Lake Erie, and people there are fond of boats and water activities.
For those who love nature There’s a wide collection of preserves for nature that are located around the city and include all of the Lake Erie beaches. Its Cleveland Metro parks system boasts more than 300 miles of biking, walking, and horse trails, as well as nature parks, picnic areas, golf courses, and fishing spots.
There’s more to it than fun and games, though, since the economy of Cleveland is strong and expanding. A new partnership between Ohio’s state and Ohio’s three hospitals, as well as two universities referred to by the name of Cleveland Innovation District, is predicted to create 20,000 new jobs in the coming decade.
Average Home Listing Price: $248,480
Average Salary: $47,268
Toledo, Ohio
In terms of geography, Toledo is in an excellent area. The city is situated at the Western edge of Lake Erie; it’s a one-hour drive from Detroit, a two-hour trip to Cleveland, and around four hours from Chicago.
While Toledo has suffered from low economic growth in the past, over the last few years, the Rust Belt city has taken steps toward an improved future.
According to a study by the Federal Reserve Bank of Cleveland, Toledo saw the most job growth in the construction industry (6.4 percent from March to the beginning of 2019). Furthermore, employment in the financial sector showed positive growth in the last quarter and “grew more quickly in the metropolitan region (at 1.4 percent) than in Ohio (0.6 percent) and also in Ohio (0.6%) and in the United States (1.3 %),” according to the report.
Toledo is home to Bowling Green University and the University of Toledo; there are more than three dozen higher education institutions within 60 miles of Toledo, which are a staggering amount of highly skilled workers.
Average Home Listing Price: $239,900
Average Salary: $37,220
Memphis, Tennessee
Home to roughly 650,000 people, Memphis has become one of the up-and-coming tech hubs of the southeastern states (though it does hug a few other more western states as well). Alongside a booming tech industry, FedEx, the Tennessee state government, and government officials from the U.S. government make up the top three companies in this region. Memphis also witnessed an increase of 9.88 percent increase in the per-capita income between 2018 until 2019, based on figures provided by the Federal Reserve.
All of that said, let’s not forget the musical and artistic roots of Memphis, which could challenge any city in the country under certain circumstances. Elvis, the blues and so much more were raised and flourished in this great city. We’re certain more is to come!
Average Home Listing Price: $327,275
Average Salary: $38,949
Baltimore, Maryland
Baltimore has some of the most prominent employers, such as John Hopkins University and Northrop Grumman, which is one of the largest manufacturing companies for weapons and military technology suppliers. The federal government is also a significant part of the Baltimore economy and employs over 18% of the workforce working for the national (145,695) and local (99,127) and local (245,253) government.
It’s also located in a fantastic area and conveniently located just a half hour away from Washington, D.C. By using MARC Penn Line from Penn Station, Baltimore residents are allowed to work in far more expensive D.C. without paying high D.C. home prices–in just eight stations.
Average Home Listing Price: $365,875
Average Salary: $50,108
Rochester, New York
Rochester was on our list of the top affordable cities, but it is likely to be more expensive in the near future. According to a report released by the real estate analytics company ATTOM Data Solutions, Rochester was one of the metro areas (with an estimated minimum population of 1 million by 2020) that saw the largest growth in return to investments (ROI) for sellers across the country increasing by 49.9 percent.
It’s also been on the agenda of a lot of experts in housing as people are leaving Manhattan in search of greater space and lower costs. Bottom line, there are several cities and attractions close enough to keep you occupied while still keeping your monthly costs for renting or owning real estate within striking distance of reasonable.
Average Home Listing Price: $274,338
Average Salary: $41,646
Milwaukee, Wisconsin
The city is situated on the western bank of Lake Michigan; Milwaukee is most likely famous for its brewing tradition. Actually, Milwaukee was home to brewery operations before it became an actual city. Many of the most storied American beer makers hail from Milwaukee, including Schlitz, Pabst, and Miller. The city’s baseball team — the Brewers, pays tribute to the city’s roots.
Milwaukee is still a thriving beer scene (there are over 30 brewery establishments within the region); however, these days, health care is the mainstay of the economy. With more than 600,000 people living there, leading three largest employers in Milwaukee are mostly in the health industry: Aurora Health Care (25,900 employees), Ascension Wisconsin (15,500), and Froedtert Health (10,900).
Milwaukee is now a popular place to go for those who are fleeing expensive metro areas like Chicago, According to data obtained from Apartment List. About 90 miles to the north of Windy City, Milwaukee median house prices are nearly half that of Chicago, which was $370,000 in the year 2020.
Average Home Listing Price: $239,900
Average Salary: $41,166
Montgomery, Alabama
Montgomery, Alabama, offers the lowest real estate tax rate of this listing, averaging around $512 annually. It’s not just the best place to find low tax rates. However, Montgomery also has promising job prospects. Montgomery is the home of a number of aerospace companies, such as Boeing, Northrop Grumman, the U.S. Department of Defense, Leidos, Raytheon, and Lockheed Martin. In reality, Lockheed Martin broke ground on a facility that covers 225,000 square feet in the year 2019. When the top aerospace firm invested in the region was the year 2014, it was able to deliver the promise of increasing the number of full-time employees to 224 in just five years.
Average Home Listing Price: $299,224
Average Salary: $39,505
Buffalo, New York
Buffalo has undergone significant changes over the last 10 years as new eateries, events, entertainment, and events come up every year. The fusion of business and community-based activities has infused Buffalo (known for its brutal winters) with plenty of excitement and energy, according to Amber Wesser, real estate broker at Hunt Real Estate in Buffalo.
The largest city in the upstate of New York, Buffalo, is approximately seven hours north of Manhattan. However, as Wesser declares, it’s not as big or popular as Big Apple. Buffalo’s population is less than 300,000, and despite the fact that it once was the home of more millionaires than anywhere elsewhere on Earth Today, Buffalo is a more affordable alternative to the big city.
According to data from several real estate resources, Buffalo’s median listing price for a single-family home in 2020 was just $184,000–considerably lower than the national median of around $340,000.
Kansas City, Kansas
The most affordable places for homebuyers who are new to the market are located in the Midwest, which includes Kansas City is definitely an example of this. With median prices of less than $200,000, this is an excellent option for buyers who are on a tight budget.
If you are working in the field of health care and you are in the healthcare field, then it’s even better. Healthcare is the most sought-after sector that is located in Kansas City (not to be confused with Kansas City, Missouri).
The University of Kansas Hospital and the University of Kansas Medical Center employ over 10,000 people in total.
