At a glance, the real estate market looks pretty gloomy, especially for those looking for affordable housing options. Not to mention, all the reports from mainstream media about the ever-increasing cost of real estate properties further fuel this belief.
But that doesn’t mean there aren’t any hidden gems that are very much within the price range and don’t sacrifice any amenities.
With that said, let’s dive into this article and discuss everything you need to know about the affordable housing market in the US.
Most Affordable Homes ($50k–$150k): Accessibility for First-Time Buyers
The $50k–$150k price range is often considered the entry point for first-time homeowners and budget-conscious investors. Homes in this category typically include older properties requiring significant renovation.
You can only find modest single-family homes located in rural or less populated areas.
It might not seem much but properties in this price range have certain advantages. For example, many government programs, such as FHA loans, offer favorable terms to buyers in this price range.
Additionally, the lower purchase price often means reduced property taxes and insurance costs. Such benefits make these homes a financially prudent choice.
That being said, some homes in this price range might come with additional hurdles like extensive repair costs or limited inventory. But that doesn’t make it any less appealing for people with limited savings.
Now, let’s see which neighborhoods in the US offer such properties:
1. Cleveland, Ohio
Cleveland, AKA the Rust City, still remains one of the most affordable cities in the US. Located along the southern shore of Lake Erie, Ohio, it is home to many cultural institutions. Such as the Cleveland Museum of Art and the Cleveland Museum of Natural History.
As a result, this offers access to cultural amenities such as the Rock and Roll Hall of Fame and professional sports teams.
The affordable housing in this city typically consists of older single-family homes in established neighborhoods. There are also some multi-family homes in the suburbs that can serve as investment properties.
- Median Home Cost: $109,571, up by 8.8% compared to last year. (Source: Zillow)
Cleveland also offers a low cost of living and opportunities for buyers looking to build equity in an affordable market.
2. Birmingham, Alabama
Birmingham is another excellent location for affordable housing in this price range, especially for first-time buyers or those looking for smaller homes. This serene city is situated in the north-central region of Alabama.
And the best part is, buyers on a tight budget have a wide range of affordable properties to choose from.
- Average Housing Price: $127,795, down by 4.5% compared to last year. (Source: Zillow)
For example, Birmingham’s real estate properties include modest single-family homes in the suburbs. Or you could go for fixer-uppers which are closer to the city.
Not to mention, the city has a range of dining options, entertainment, sports, music, and job opportunities.
Mid-Range Properties ($150k–$300k): A Sweet Spot for Families
The $150k–$300k range caters to growing families, professionals, and buyers seeking homes with better amenities. These properties are often a step up from entry-level housing and provide a balance of affordability and quality.
Properties in this range typically include townhouses and single-family homes. These homes are more often located in the suburban areas.
Going for mid-range homes instead of entry-level ones also comes with many benefits. Like proximity to good schools, better infrastructure, community features, and so on.
Despite such advantages, mid-range properties are not without difficulties. You may have to put up a fight to buy a suitable property as there’s fierce competition in this range. Geographic disparity and rising mortgage rates are also ever-present concerns.
That being said, the rental opportunity and investment opportunity for young families make it a well-balanced choice for most buyers.
Here are some locations where you can find such properties:
1. Greenville, South Carolina
Greenville is a growing city in the Southeast with a vibrant downtown and affordable suburban neighborhoods.
This anchor city of upstate South Carolina boasts single-family homes with spacious yards, which are ideal for young families. Some newer townhouses can also be found in the rural areas closer to the city.
- Median Housing Cost: $307,035, up by 2.6% compared to last year. (Source: Zillow)
What makes these properties stand out is their proximity to good schools, parks, and restaurants.
Greenville also boasts a strong job market, thanks to major employers in manufacturing and tech. This makes it a top choice for young professionals and families alike.
2. Kansas City, Missouri
Kansas City provides a robust housing market with affordable options in both the city and surrounding suburbs.
Buyers can expect charming historic homes in older neighborhoods like Brookside or Waldo. You can also find newer construction closer to the city.
- Average Home Price: $235,610, up by 4.1% compared to last year. (Source: Zillow)
Kansas City is also known for its strong community feel, excellent school districts in suburban areas, and affordable cost of living.
As a result, it is a great option for buyers looking to balance quality and budget.
Lavish Condos and Properties ($300k–$500k): Luxury Within Reach
The $300k–$500k range appeals to upper-middle-class professionals, retirees, and investors looking for premium properties. These homes offer luxury touches without entering the ultra-high-end market.
Luxury condos, premium single-family apartments, and townhouses with high-end features; these are the type of properties you can find in this range.
These premium properties are usually located in prime locations. This opens up a wide range of benefits, such as upscaled amenities and a much higher investment potential.
The below-listed cities are the hotspots for such properties.
1. Hilton Head Island, South Carolina
Hilton Head Island, nestled along South Carolina’s picturesque coastline, is a standout location for lavish yet affordable properties. Known for its upscale lifestyle and natural beauty, the island offers an enticing combination of luxury, amenities, and relaxation.
The city offers ocean-view condos with high-end finishes, located near beaches or marinas.
And that’s not all!
You can also find spacious townhomes with premium features like screened porches or outdoor patios.
- Average Housing Cost: $765,566, up by 2.5% compared to last year. (Source: Hilton Head Realty Sales)
From boating and water sports to fine dining and shopping, this island has it all without breaking your bank. As a result, it is a haven for retirees, second-home buyers, and professionals seeking a balance between luxury and relaxation.
2. Naples, Florida
Naples, situated on Florida’s Gulf Coast, is another destination for lavish yet relatively affordable properties.
- Median Home Price: $585,137, down by 2.1% compared to last year. (Source: Zillow)
The highlights of the real estate market in this city are the upscaled condos. They come with serene water views, private balconies, and access to beach clubs.
Furthermore, Naples offers both urban conveniences and a laid-back vibe. Hence, the city usually attracts retirees and second-home buyers looking for a slice of luxury within a manageable budget.
Bottom Line
The ongoing inflation and housing stock crisis have not been kind to property buyers in the US. However, there’s still hope. The above-mentioned cities have something that we desperately need, affordable housing that meets all the requirements.
Anyway, that’s it for today. I hope this write-up has provided all the necessary information you were looking for.
Have a nice day!