Cities Where the American Dream and Avocado Toast are a Possibility
As the cost of renting continues to rise, many individuals and families are considering transitioning from renters to homeowners. However, with the cost of homes skyrocketing in some cities, it can be difficult to make the transition without facing a significant financial burden. Millennials, in particular, are entering the homeownership race at record lows. Fortunately, there are still many cities in the United States where renters can easily afford to purchase a home. Below are some of the top 10 cities for renters to transition to homeownership without breaking the bank:
1. Detroit, Michigan
The median home price in Detroit is currently around $47,000, making it an extremely affordable city for renters looking to purchase their first home. In addition, the city offers several assistance programs aimed at helping first-time homebuyers. According to SmartAsset, Detroit has a home affordability index of 94.35, indicating that it is one of the most affordable cities for homeownership in the country.
2. Buffalo, New York
Buffalo has a median home price of around $138,000, making it another city that is affordable for renters looking to buy. Additionally, the city offers a variety of programs for first-time homebuyers, including down payment assistance and low-interest loans.
3. Pittsburgh, Pennsylvania
Pittsburgh offers a median home price of around $174,000, and SmartAsset rates the city as having a home affordability index of 76.19, indicating that it is an affordable city for renters looking to transition to homeownership. The city also offers a variety of assistance programs for first-time homebuyers.
4. Cleveland, Ohio
Cleveland has a median home price of around $80,000, making it an affordable city for renters looking to buy a home. The city also offers several programs aimed at helping first-time homebuyers, including down payment assistance and low-interest loans. Cleveland is one of the cities on the list that is slightly higher in unemployment numbers, but compensates with a lower cost of living overall.
5. St. Louis, Missouri
St. Louis has a median home price of around $185,000, making it a fairly affordable city for renters looking to transition to homeownership. The city also offers several programs aimed at helping first-time homebuyers, such as down payment assistance programs and homebuyer education courses.
6. Birmingham, Alabama
Birmingham has a median home price of around $119,000, making it an affordable city for renters looking to buy a home. Additionally, the city offers several programs aimed at helping first-time homebuyers, including down payment assistance and homebuyer education courses.
7. Houston, Texas
Houston has a median home price of around $227,000, which is higher than some of the other cities on this list. However, the city is still considered affordable for renters looking to transition to homeownership, and it offers several programs aimed at helping first-time homebuyers.
8. Oklahoma City, Oklahoma
Oklahoma City has a median home price of around $166,000, making it an affordable city for renters looking to buy a home. Additionally, the city offers several programs aimed at helping first-time homebuyers, including down payment assistance and low-interest loans.
9. Columbus, Ohio
Another Ohio city, Columbus, has a median home price of around $208,000, which is higher than some of the other cities on this list. However, the city is still considered affordable for renters looking to purchase a home, and it offers several assistance programs for first-time homebuyers.
10. Indianapolis, Indiana
Indianapolis has a median home price of around $168,000, making it an affordable city for renters looking to transition to homeownership. The city also offers several programs aimed at helping first-time homebuyers, including down payment assistance and low-interest loans.
Overall, all of these cities offer affordable options for renters looking to transition to homeownership. By taking advantage of the available programs and assistance, renters can easily make the jump to owning their own homes. One of the upsides of the post pandemic lifestyle is that remote work has increased in popularity and is a possiblity if you are thinking of moving into an area of high unemployment. Planning according and considering all lifestyle factors (schools, accessibility to healthcare, infrastructure and property values) can be a good way to get a leg up in the homebuyers market. As always, having a roommmate or renting out a part of your property once purchased is a great way to balance your mortgage payments.
