Buying a home is the American Dream, but affording a home can turn that dream into a nightmare. The challenges include finding one that is in your price range, availability of homes, and finding a home that meets your needs. According to Realtor.com, here are 8 cities that have the best affordable housing for families with lower incomes:
Here are 8 of the cities on the list:
- Indianapolis, Indiana - Buying a mid-price home in Indianapolis takes about 17 percent of income, well below the 28 percent recommended by HUD. In fact, 71 percent of all the listings in Indy are considered affordable.
- Memphis, Tennessee - This city has a combination of low median home prices, low mortgage rates, and plenty of homes to choose from. You can also expect a healthy 9 percent home appreciation.
- Virginia Beach, Virginia - This beach town has plenty of home inventory and offers good deals on mortgage rates, but median home prices here are also above the national average.
- Birmingham, Alabama - Affordable homes and a good amount to choose from make Birmingham a good place to buy. Most homeowners here spent only about 20 percent of their income when buying a home.
- Cincinnati, Cleveland and Columbus, Ohio - Three Ohio cities made the list due to low unemployment rates, affordable median home prices, and good inventory. These cities have healthy economies because they are home to big retailers and other large companies.
- Pittsburgh, Pennsylvania - To buy a house in Pittsburgh takes only about 19 percent of household income. Its low median home prices also make home ownership attainable for most.
- Atlanta, Georgia - Atlanta has 50,000 homes for sale. Buying a home here is better than renting.
- Detroit, Michigan - Detroit has low mortgage rates and plenty of homes for sale. This city has had its share of financial trouble, but home prices are starting to come back at an annual appreciate rate of 8 percent.