The 30 most affordable cities to buy a house

These cities may attract first-time homebuyers struggling to put together a down payment and qualify for higher-rate mortgages.

For those Americans in the market for a new home, the purchase is a priority, and while some remain optimistic about its prospects, many are hampered by the worsening economy and higher mortgage rates.

That’s according to NerdWallet homebuyers report 2023a survey of 2,051 American adults from December 1-5, 2022.

About 70% of those who had plans to buy a home in 2022 were unsuccessful, and 4% canceled their plans because they changed their mind about buying a home, the survey found.

A recent study of bank fee sought to determine the best metro areas for first-time homebuyers by looking at a combination of factors in 50 US metro areas: affordability, the job market, wellness and culture, and the tightness of the housing market.

The worst metro areas on his list are the usual suspects: Washington, DC ranks last, with weak job growth and a tight housing market. Behind this came notoriously unaffordable Boston, New York, and San Diego, all cities that ranked high for their well-being and culture (including access to health care, food, and community services, diversity, and the number of arts, entertainment and recreation establishments per capita). )

Overall, they found that cities like Austin, Kansas City, and Raleigh scored the highest across the board, making these places more attractive to first-time buyers. Austin’s strong job market makes it desirable, but with median home prices around $565,000, it’s not very affordable. The NerdWallet survey found that prospective buyers expect to spend $269,200 on average. This in itself is probably unrealistic; Median home prices nationwide were $379,100 as of October 2022.

This list is one of the most affordable of the 50 meters. These can appeal to first-time homebuyers struggling to put together a down payment and qualify for higher-rate mortgages. The affordability ranking in the Bankrate study includes the typical income needed to qualify for a mortgage, with a 10% down payment, a 5% mortgage rate on a 30-year loan, and a 25% mortgage debt-to-income ratio. . It also takes into account the general cost of living in the area and how the mortgage payment compares to the median household income in each area.

These are the most affordable metro areas in Bankrate’s ranking of cities for first-time homebuyers.