10 Best Cities Where You Can Buy a House for Under the National Average

These days, buying a home is very costly. Since the onset of the pandemic four years ago, demand for homes has skyrocketed. Dwindling supply and record-setting mortgage interest rates have sent the price of homes soaring.

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According to the Federal Reserve Bank of St. Louis , the median sales price of houses sold in the U.S. as of Q1 2024 is a staggering $420,800. That’s up from $329,000 as of Q1 2020. Buying a home may be out of reach with home prices like these.

However, there are still 10 cities where it’s possible to buy a house under the national average and achieve the age-old “American dream.”

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Top 10 Cities To Buy A Home For Less

Forbes Advisor analyzed 100 metro areas with a population of at least 100,000 to identify the top 10 most affordable cities for homebuyers . They looked at these factors to gauge affordability:

• Median salary
• Median home listing price in 2023
• Median annual real estate taxes
• Average state income tax
• Monthly utilities
• Annual food cost

Here are the results:

1. Kansas City, Missouri

• Median salary: $37,861
• Median home listing price in 2023: $453,363
• Median annual real estate taxes: $1,663
• Average state income tax: 4.68%
• Monthly utilities: $271
• Annual food cost: $7,682

2. Buffalo, New York

• Median salary: $41,036
• Median home listing price in 2023: $277,697
• Median annual real estate taxes: $1,601
• Average state income tax: 6%
• Monthly utilities: $194
• Annual food cost: $8,966

3. Montgomery, Alabama

• Median salary: $39,505
• Median home listing price in 2023: $299,224
• Median annual real estate taxes: $512
• Average state income tax: 3.67%
• Monthly utilities: $238
• Annual food cost: $7,616

4. Milwaukee, Wisconsin

• Median salary: $41,166
• Median home listing price in 2023: $239,900
• Median annual real estate taxes: $3,122
• Average state income tax: 5.78%
• Monthly utilities: $202
• Annual food cost: $7,682

5. Rochester, New York

• Median salary: $41,646
• Median home listing price in 2023: $274,338
• Median annual real estate taxes: $2,625
• Average state income tax: 6%
• Monthly utilities: $197
• Annual food cost: $8,966

6. Baltimore, Maryland

• Median salary: $50,108
• Median home listing price in 2023: $365,875
• Median annual real estate taxes: $2,799
• Average state income tax: 4.41%
• Monthly utilities: $241
• Annual food cost: $8,434

7. Memphis, Tennessee

• Median salary: $38,949
• Median home listing price in 2023: $327,275
• Median annual real estate taxes: $1,658
• Average state income tax: 1%
• Monthly utilities: $158
• Annual food cost: $7,616

8. Toledo, Ohio

• Median salary: $37,220
• Median home listing price in 2023: $239,900
• Median annual real estate taxes: $1,541
• Average state income tax: 3.84%
• Monthly utilities: $201
• Annual food cost: $7,682

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9. Cleveland, Ohio

• Median salary: $47,268
• Median home listing price in 2023: $248,480
• Median annual real estate taxes: $1,508
• Average state income tax: 3.84%
• Monthly utilities: $187
• Annual food cost: $7,682

10. Detroit, Michigan

• Median salary: $36,000
• Median home listing price in 2023: $270,000
• Median real estate taxes: $1,268
• Average state income tax: 4.25%
• Monthly utilities: $290
• Annual food cost: $8,277

This article originally appeared on GOBankingRates.com : 10 Best Cities Where You Can Buy a House for Under the National Average