After 19 months straight of year-over-year median existing-home sales price increases, is there anywhere where prospective homeowners can find a home for a reasonable price? According to one recent study, the Motor City is where they’ll have the best bet.
This study from luxury bathroom company Badeloft USA, found that Detroit is the easiest city in the U.S. to buy a home in. To come to this conclusion, the study looked at housing affordability across major U.S. cities and analyzed them based on four key metrics: average house prices, monthly net salaries after tax, basic living costs such as housing and utilities, and disposable income.
“The final ranking orders cities by these saving timelines, with Detroit’s 2.6 years establishing the benchmark for affordability,” said Badeloft USA. That’s the amount of time it would take to save for a home.
Here’s the top five ranking:
1. Detroit, Mich. ($74,000 average house price, 2.6 years to collect)
2. El Paso, Texas ($223,000 average house price, 5.3 years to collect)
3. Indianapolis, Ind. ($222,000 average house price, 5.4 years to collect)
4. Oklahoma City, Okla. ($196,900 average house price, 6.4 years to collect)
5. Philadelphia, Pa. ($218,000 average house price, 6.7 years to collect)
The study also identified San Antonio, Texas, as the city with the lowest cost of daily necessities across all analyzed cities – that low cost allows residents there to save 75% of their monthly salary. Chicago, Ill., has the highest salary levels of all the cities surveyed, which allows residents there to set aside savings.
According to the National Association of Realtors, the median price for existing homes was $396,900 last month, a 4.8% advance compared to January 2024. Existing home sales also slipped last month to a seasonally adjusted annual rate of 4.08 million.
“However, sales rose 2% from one year ago, the fourth straight monthly year-over-year increase,” said the NAR.