While U.S. home prices have risen at an annual rate of around 5% for the past few years, one important point about the increases is where the prices started from. Two 5% increases on a home that sold for $500,000 in 2015 puts the price of that home north of $550,000 today.
It is still possible to buy a home in the United States for less than the two-year appreciation on that $500,000 house. There’s a catch of course: most of these homes are located either in the Midwest or the Rust Belt.
The Great Recession did not pass these cities by either. While problems remain, the housing experts at Realtor.com found that these cities have a strong sense of community, decent schools, strong infrastructure, and some great old homes built during the area’s boom times.
Realtor.com researchers looked at homes in the 500 largest U.S. metro areas and identified 10 with the lowest median home prices. They limited the results to only one city per state. Here’s their list along with the median price for the area and the median price in the most affordable ZIP code:
1. Marion, Indiana
> Median home price: $66,750
> Cheapest ZIP code and median home price: 46953; $45,000
2. Danville, Illinois
> Median home price: $69,700
> Cheapest ZIP code and median home price: 61832; $59,900
3. Pottsville, Pennsylvania
> Median home price: $69,900
> Cheapest ZIP code and median home price: 17901; $60,000
4. Bay City, Michigan
> Median home price: $88,900
> Cheapest ZIP code and median home price: 48708; $69,900
5. Weirton, West Virginia
> Median home price: $90,000
> Cheapest ZIP code and median home price: 43952; $85,000
6. Pine Bluff, Arkansas
> Median home price: $94,500
> Cheapest ZIP code and median home price: 71601; $25,200
7. Lima, Ohio
> Median home price: $95,000
> Cheapest ZIP code and median home price: 45801; $79,900
8. Elmira, New York
> Median home price: $109,000
> Cheapest ZIP code and median home price: 14904; $59,900
9. Topeka, Kansas
> Median home price: $109,000
> Cheapest ZIP code and median home price: 66616; $61,000
10. Cumberland, Maryland
> Median home price: $110,000
> Cheapest ZIP code and median home price: 21502; $94,900
Visit the Realtor.com website for more information and details.
24/7 Wall St.Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.