Click here to see the Most Affordable Cities to Buy a House report for 2022.
For many, cheaper doesn’t necessarily mean worse.
Despite the widespread economic hardship over the last year, many Americans are still in the market to purchase a home. In fact, nearly 850,000 homes were sold in 2020, up about 18.8 percent since the previous year, according to the United States Census Bureau. Clearly, the housing market has remained resilient amidst the continuous economic repercussions of the pandemic, and it and shows no signs of slowing in 2021.
Buying a house is typically the most expensive purchase we make in our lifetime. Unfortunately, Americans tend not to be very strategic at choosing the appropriate home based on their finances, setting their sights well above their means. More than half of first-time homebuyers are now planning to purchase homes with less than a twenty percent down payment, and about a quarter are planning to do so with less than a ten percent down payment, according to Business Insider. By paying less than the recommended twenty percent, these new homeowners set themselves up for higher interest rates, significantly increasing the burden of their monthly mortgage payments on their finances.
However, in some cities, homes tend to sell at much more affordable price points than in others. To identify the cities with the most affordable housing markets this year, the data science team at Insurify referred to national real estate data. In these cities, making more than the minimum down payment is not only feasible but is also considerably easier than in the rest of the country. Moreover, many of these cities boast a good quality of life and solid education systems. Likely undervalued at present, many of the home markets in these 20 cities are rich with long-term growth potential.
