With inflation mounting, home prices rising, and daunting mortgage rates looming large, the prospect of owning a home might feel increasingly out of reach for most. Given this state of the real estate world, it's understandable that people in the middle class who are ready to buy a house are feeling demoralized by a current market that Realtor.com describes as "fraught and freaky."
Chief economist of Realtor.com, Danielle Hale, explains, "A dwindling number of homes for sale prompted fast sales and rising prices, making it hard for middle-class families whose budgets are already getting squeezed by inflation to find a home that is in budget." But Hale and her Realtor.com team were determined to crunch the numbers and show us that, despite these conditions, not all hope is lost.
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In a new report, Realtor.com breaks down the top 10 places for middle-income Americans to buy homes. Youngstown, Ohio claims the number one spot with a median home price of $129,900, and 85.5% of homes in this state are considered affordable for middle-class buyers. Based on Claritas data, Realtor.com quantifies "middle class" as households that make about $72,000 a year, and determined that these families would most comfortably be able to afford homes priced up to $280,000. According to Hale, homes in this price range tend to be found in the South and Midwest.
Claiming the number-two spot on the list is Scranton, Pennsylvania with a median home price of $215,000, followed by Syracuse, New York at $199,900. With the national median price of a home clocking in at $450,000 as of June, these encouraging prices are well below average and seemingly pretty attainable for a middle-class family. Check out the report's full list of affordable towns, and their median home prices, below:
1. Youngstown, OH: $129,900
2. Scranton, PA: $215,000
3. Syracuse, NY: $199,900
4. Wichita, KS: $265,000
5. McAllen, TX: $260,000
6. St. Louis, MO: $273,900
7. Detroit, MI: $249,900
8. Little Rock, AR: $279,900
9. Tulsa, OK: $295,000
10. Louisville, KY: $289,900