5 Cities That Could See the Most Affordable Home Listings Now That Rates Have Dropped
By Virginia Anderson,
2024-09-19
If you’ve been waiting for interest rates to drop before buying a new home, you may be in luck. Trends show that the national 30-year fixed mortgage interest rate has decreased by nearly one percentage point since May 2024. That makes buying a home more accessible to consumers across the nation. Several metro areas may see a massive shift in housing affordability, according to a Realtor.com study .
The gain in affordability may be as much as 5.9% — a welcome sign for potential homebuyers waiting for rates to decline. Here’s where housing affordability is rising, so you can prepare to strike while the iron’s hot .
Listings available at 30% of the median earner’s income : 52.9%
Median home sales price: $307,250
Overall cost of living: 8.4% cheaper than the national average
Groceries: 2.7% higher than the national average
Healthcare: 0.9% higher than the national average
Utilities : 2.0% cheaper than the national average
Transportation : 15.4% cheaper than the national average
Lakeland is a fast-growing Central Florida city located 45 minutes east of Tampa and one hour south of Orlando. Its proximity to both towns make it an ideal location for new homeowners seeking to stretch their housing budget. Since you can commute to either city, you may broaden your employment prospects while keeping overall costs low.
Listings available at 30% of the median earner’s income : 30.7%
Median home sales price: $535,500
Overall cost of living: 21.3% higher than the national average
Groceries: 4.2% cheaper than the national average
Healthcare: 1.3% higher than the national average
Utilities : 5.9% cheaper than the national average
Transportation : 6.6% cheaper than the national average
Salt Lake City may not be the cheapest place to live in America, but a downshift in interest rates could make buying a home there more affordable to 5.7% of the city’s residents. Living in Salt Lake City has multiple advantages, including a thriving job market, stunning mountain landscapes and a lively downtown area.
El Paso, Texas
Percent gain in affordability : 5.4%
Listings available at 30% of the median earner’s income : 40.8%
Median home sales price: $250,950
Overall cost of living: 18.1% cheaper than the national average
Groceries: 8.0% cheaper than the national average
Healthcare: 3.7% cheaper than the national average
Utilities : 2.9% cheaper than the national average
Transportation : 8.1% cheaper than the national average
El Paso is one of the more affordable Texas cities, with living costs slightly below San Antonio and Austin. El Paso’s extreme heat and weather may not be attractive to everyone. However, residents enjoy its booming economy and fun arts scene.
Raleigh, North Carolina
Percent gain in affordability : 5.2%
Listings available at 30% of the median earner’s income : 52.4%
Median home sales price: $440,000
Overall cost of living: 5.8% higher than the national average
Groceries: 0.6% higher than the national average
Healthcare: 5.2% cheaper than the national average
Utilities : 0.9% cheaper than the national average
Transportation : 11.4% cheaper than the national average
Raleigh offers family-friendly living at an affordable cost. It’s part of North Carolina’s research triangle, so you’ll find many employment opportunities in the medical, tech and finance sectors. It is also the home of the University of North Carolina, so there’s always something happening in the downtown area — from college sports games to buzzing bars and restaurants.
Deltona, Florida
Percent gain in affordability : 5.0%
Listings available at 30% of the median earner’s income : 42.2%
Median home sales price: $310,000
Overall cost of living: 5.1% cheaper than the national average
Groceries: 0.9% cheaper than the national average
Healthcare: 2.7% higher than the national average
Utilities : 2.0% cheaper than the national average
Transportation : 4.4% higher than the national average
Located just 30 minutes from Orlando and Daytona Beach, Deltona is an affordable community with lots to offer. Its reasonable housing prices and proximity to employment opportunities make it attractive to prospective homebuyers. While it’s a small city with less than 100,000 residents, there is no shortage of things to do, whether you enjoy outdoor activities or dining out.
Editor’s note: Housing market and cost-of-living data was sourced from Redfin and BestPlaces .
Get updates delivered to you daily. Free and customizable.
It’s essential to note our commitment to transparency:
Our Terms of Use acknowledge that our services may not always be error-free, and our Community Standards emphasize our discretion in enforcing policies. As a platform hosting over 100,000 pieces of content published daily, we cannot pre-vet content, but we strive to foster a dynamic environment for free expression and robust discourse through safety guardrails of human and AI moderation.
Comments / 0