These are the 10 most affordable cities to buy a home
Cities from Ohio to Tennessee have been deemed the most affordable places to call home
Detroit, Michigan, otherwise known as the Motor City, is the cheapest city in the nation to buy a home, according to a recent Forbes Advisor report.
Detroit boasts the cheapest home prices and experts say a lot of younger homebuyers are taking advantage of the economic downturn.
"A decade ago, Detroit attracted a significant number of foreign investors as well as young transplants that took advantage in the previous downturn, and we are seeing similar activity happening now," Edward Mermelstein, CEO of One & Only Holdings, told FOX Business.
However, cities from Ohio to Tennessee have also become cost-effective places to call home, Forbes Advisor reported.
These cities were deemed affordable after looking at a combination of factors including the average listing price from 2020 and the median income of that city, as well as annual median real estate taxes, according to the report.
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Detroit, Michigan
Detroit, Michigan (iStock)
The city has the most affordable houses on the market with the median listing price in 2020 sitting around $59,000, according to Forbes.
The median salary is on the lower end, around $36,000. However, the annual median real estate taxes are about $1,268. Additionally, the cost of utilities per month will run a homeowner just under $300.
"While secondary markets tend to be very attractive from an affordability standpoint, they rarely outperform on a long-term basis," Mermelstein said.
However, the city, home to the Big Three automakers, has struggled over the last decade, most notably filing for bankruptcy in 2013. More recently, the city also faced protests over racial injustice and police brutality following the death of George Floyd last May.
Cleveland, Ohio
Downtown Cleveland skyline (iStock)
Cleveland residents get paid slightly higher compared to Detroit, with a median average salary of $47,268. However, the median listing price for homes is more than double than Detroit, sitting around $140,000.
The annual median real estate taxes are about $1,508 and with monthly utilities falling just under $200.
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Toledo, Ohio
Maumee River and Toledo Ohio skyline (iStock)
The median salary in Toledo is about $37,220. Although the average salary is less than Cleveland, the average home price is also lower.
The median listing price for homes sits at $95,000 and the annual median real estate taxes are about $1,541. Residents in Toledo, which sits beside the western end of Lake Erie, pay about $201 in utilities per month.
Memphis, Tennessee
Panoramic view of downtown Memphis (iStock)
The median salary in Memphis, otherwise known as the home of the blues and birthplace of rock and roll, is about $38,949. Comparatively, the median listing price for homes is around $123,000 and the median annual real estate taxes are $1,658.
Monthly utilities will be about $158.
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Baltimore, Maryland
A view of the Inner Harbor in Baltimore, Maryland (iStock)
The median salary in "Charm City" is about $50,108. The median listing price for homes is about $191,000 and the median annual real estate taxes are about $2,799.
Meanwhile, monthly utilities are about $241.
Rochester, New York
Downtown Rochester skyline and Genesee River (iStock)
The median salary in Rochester is about $41,646. The median listing price for homes is about $151,000 and the median annual real estate taxes are about $2,625.
Monthly utilities in the city are just under $200.
However, Mermelstein told FOX Business that like other cities on the list, Rochester does not have good long-term potential and will continue to suffer without a "major federal and corporate investment."
Milwaukee, Wisconsin
Milwauke (iStock)
The median salary in Milwaukee is $41,166. The median listing price for homes is $167,000, while the median annual real estate taxes are just over $3,000.
Monthly utilities will cost just over $200.
Montgomery, Alabama
Montgomery, Alabama downtown skyline (iStock)
The median salary in Montgomery is $39,505. The median listing price for homes is $192,000. However, the city has the lowest median annual real estate taxes on the list, hovering just above $500.
Monthly utilities will cost about $238.
Buffalo, New York
Downtown Buffalo skyline (iStock)
The median salary in Buffalo is about $41,036. The median listing price for homes is $184,000. Median annual real estate taxes are $1,601.
Monthly utilities will cost about $194.
Kansas City, Kansas
Kansas City, Kansaa skyline (iStock)
The median salary in Kansas City is about $37,861. The median listing price for homes is about $170,000. Meanwhile, median annual real estate taxes are about $1,663.
Monthly utilities will cost about $194.