Consumer Comeback Blog

Relocate to Save Money: Index Rates Most Affordable Cities

Considering the mortgage crisis, unemployment rates and other financial troubles, Americans are looking for ways to make every cent count. Sometimes that means relocating the homestead budget-friendly locations.

The National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) rated cities where Americans can get more bang for their housing buck. It’s no surprise that the major metropolitan cities, 92% of which are currently experiencing a surge in housing prices, do not make the list.

According to the quarterly HOI data, 73.8% of all new and existing homes are affordable to families earning the national median income of $65,000. Americans will find the most affordable housing in tri-city areas where 93.4% of the homes were affordable by residents making a median income of $55,700.

The most affordable cities in the U.S. include:

  1. Youngstown, Ohio: Median home price: $80,000; Median income: $55,700;
  2. Dayton, Ohio: Median home price: $92,000; Median income: $63,300
  3. Buffalo-Niagara Falls, N.Y.: Median home price: $105,000; Median income: $55,100
  4. Indianapolis, Ind.: Median home price: $114,000; Median income: $66,900
  5. Modesto, Calif.: Median home price: $135,000; Median income: $62,000

Least affordable cities:

  1. New York City: Median home price: $430,000; Median income: $68,300
  2. San Francisco: Median home price: $650,000; Median income: $103,000
  3. Bridgeport, Conn.: Median home price: $395,000; Median income: $87,100
  4. Santa Anna, Calif.: Median home price: $425,000; Median income: $85,300
  5. Los Angeles: Median home price: $316,000; Median income: $64,800

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