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.
The Income You Need to Comfortably Afford the Median-Priced Home in America
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