Those looking to buy their first property are facing the challenge, among others, of saving enough for the down payment in a high inflation economy. For those who work remotely or are willing to relocate, a recent study by Rocket Homes may help find a new place to live.
The study compared 383 large metropolitan areas across the country to discover which are the most affordable for buyers with a household income of $65,000 – an amount below the national average household income, which is currently $70,784, according to the Census.
To arrive at the top 10 metropolitan areas for these buyers, researchers compared home prices, mortgage payments, sales taxes, unemployment rates, crime rates, resident health, climate risks, among others.
Thirty-year fixed-rate mortgages, 20% down payment, and an interest rate of 6.5% were considered in the calculations.
Wausau, Wisconsin, with an average home price of $228,770 and an estimated monthly mortgage payment of $1,482, topped the list, driven by low unemployment and crime rates. Cities in Indiana, Missouri, and North Dakota followed. Pittsburgh ranked seventh, largely thanks to the health of its residents. And Chambersburg, Pennsylvania, came in eighth, aided by its low crime rate.
If the East Coast is your preference, consider Bangor, Maine, about 40 miles from the Atlantic Ocean. But if you are a first-time buyer eager for a home on the West Coast, you may have to put your dream on standby. There, home prices remain very high.
City – Average Home Price – Estimated Mortgage Payment
• Wausau, Wis. – $228,770 – $1,482
• Lafayette, Ind. – $240,078 – $1,347
• Columbia, Mo. – $274,592 – $1,603
• Grand Forks, N.D. – $255,143 – $1,531
• Morgantown, W.Va. – $212,961 – $1,162
• Bangor, Maine – $244,145 – $1,525
• Pittsburgh, PA – $208,446 – $1,330
• Chambersburg, Pa. – $252,282 – $1,537
• Syracuse, N.Y. – $204,402 – $1,501
• Lansing, Mich. – $222,711 – $1,441
Source: The New York Times