The housing market crash resulted in millions of foreclosures and millions of families ending up owing more on their mortgage than what their home was worth. This has made it nearly impossible for anyone to sell their home at a good price, but it has also created opportunity for home buyers and investors. Affordable housing markets are a double edged sword because, while home ownership is more accessible to people who couldn’t otherwise afford a home, areas with low real estate prices indicate that the local economy is having trouble, meaning that the chances of finding a job locally are minimal. Here is a list of the top 5 most affordable housing markets in the United States in 2013:
- Detroit, Michigan. In the most affordable city in the US, the median home price is just $60,200, due to many abandoned properties and homes that sell for under $20,000. Detroit’s median household income of $48,988 is below average, but it’s still 45 percent more than the amount needed to qualify for the loan on an average-priced house.
- Atlanta, Georgia. Atlanta is a city that has everything going for it, unlike Detroit. In the state capital of Georgia, the median home price of $103,200 is below average, while the $52,639 median household income is above average. Homeowners in Atlanta also pay below average insurance premiums and property taxes.
- Minneapolis, Minnesota. Minneapolis’ higher than average household income of $63,352 allows people to qualify for a mortgage on a median-priced home with a little more than 67 percent of their income. The $174,500 median home price is below average, but Minneapolis has higher insurance premiums and property taxes.
- Phoenix, Arizona. Due to the housing bubble burst, Phoenix has become a very affordable city. With a median household income of $50,058, families can easily qualify for a mortgage. The average price of a house in Phoenix is just $148,400, and homeowners pay $1,437 in property taxes and $642 for homeowners insurance.
- St. Louis, Missouri. Because the city still has land to expand, the home prices in St. Louis are great for people looking to purchase a house. The median household income of $51,164 is above average, while the median home prices ($131,700), property taxes ($2,132) and homeowners insurance ($881) are all below average.
Affordable housing markets can be a real blessing for home buyers who are looking for a bargain, but also for investors looking to make a profit. Unfortunately, many of the areas in which housing markets are affordable come with a few downsides, such as a stagnant local economy, so make sure you thoroughly research the area before purchasing a home in it.