10 Cities Where It’s Easiest to Own a Home and Grow Savings

If you’ve searched for a home over the past few years, then you know how challenging it is to find something affordable. Even if you can afford a home, you might be spending so much on it that you don’t have enough left over to grow your savings. Some U.S. cities give you the best of both worlds — affordable homes and low costs of living — but they are more the exception than the norm these days .

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Home prices have been on a steady climb for decades, but they really began to accelerate early in 2020. Average prices of homes sold in the U.S. reached $513,100 during the 2024 first quarter, according to Federal Reserve data. That’s up from $384,600 at the end of 2019 – a gain of 33% in less than five years.

A recent report from the National Association of Realtors found that the median existing-home sales price in May 2024 rose 5.8% from the previous year to $419,300. That was the highest price ever recorded and the 11 ^th straight month of year-over-year price gains.

Meanwhile, a separate report released last week by ATTOM Data Solutions determined that home affordability in the United States is at its lowest point since 2007 , based on mortgage, tax and insurance costs. Those costs currently suck up 35.1% of the average homeowner’s take-home pay — well above the common lending guideline of 28%.

“The latest affordability data presents a clear challenge for home buyers,” ATTOM CEO Rob Barber said in a news release. “While home prices are increasing and mortgage rates remain relatively high, these factors are making homes less affordable…The trends this year are particularly challenging for house hunters, more so than at any point since the housing market boom began in 2012.”

But there could be light at the end of the tunnel, at least in markets with sufficient home availability to keep prices down.

“Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months,” NAR Chief Economist Lawrence Yun said in a statement. “Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions.”

Here are 10 U.S. cities where it’s easiest to own a home and grow savings, based on home price data from Realtor.com and cost-of-living scores from BestPlaces . All of the following cities have median home listing prices below $200,000 and cost-of-living scores under 100, meaning they are less expensive than the average city.

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Akron, Ohio

• Median listing home price : $149,900
• Cost-of-living index score: 80.8

Albany, Georgia

• Median listing home price : $125,900
• Cost-of-living index score: 72.7

Detroit, Michigan

• Median listing home price : $99,000
• Cost-of-living index score: 91.8

Huntington, West Virginia

• Median listing home price : $125,000
• Cost-of-living index score: 79

Lansing, Michigan

• Median listing home price : $154,900
• Cost-of-living index score: 83.6

Milwaukee, Wisconsin

• Median listing home price : $199,900
• Cost-of-living index score : 88

Niagara Falls, New York

• Median listing home price : $129,900
• Cost-of-living index score: 87

Rockford, Illinois

• Median listing home price : $165,000
• Cost-of-living index score: 79

Rochester, New York

• Median listing home price : $159,900
• Cost-of-living index score : 88.6

Toledo, Ohio

• Median listing home price : $132,500
• Cost-of-living index score : 77.4

This article originally appeared on GOBankingRates.com : 10 Cities Where It’s Easiest to Own a Home and Grow Savings