Housing
These Cities Have the Cheapest Homes in America
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24/7 Wall St. Insights
- American home prices rose to an all-time high in July.
- West Coast cities were the most costly, but Rochester was the cheapest.
- Also: Dividend legends to hold forever.
According to the carefully followed S&P CoreLogic Case Shiller Home Price Index, American prices rose 5.5% in July, compared to July last year, putting them at an all-time high. West Coast cities, led by Los Angeles and San Diego, were costly. They rose nationwide to some extent because people with 3% mortgages do not want to sell their homes when current mortgages can carry interest rates as high as 7%.
According to Realtor.com, some markets are still affordable compared to national numbers. A home’s median sale price in the United States is $425,000. In several markets, home prices are over $100,000 cheaper based on the same yardstick.
Rochester is among the markets with the lowest median price per home for sales, $282,500. This is even though home values rose 13% year over year in September, which was due to low inventory.
Home prices may be low because Rochester is among America’s most troubled cities. It has a high poverty rate, which is why, among other things, it is ranked number 43 on WalletHub’s “Neediest Cities.”
Detroit is another market with very inexpensive homes. According to Realtor.com, a home’s median sale price is $277,000. However, it ranks number one on the WalletHub list.
Although homes may be very cheap in several American metros, those cities tend to be troubled and have high poverty levels.
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