Yahoo Finance 10 Most Affordable Mid-Size Cities for Homebuyers in 2023
In the United States, the median sales price of a home is currently $436,800 — this is around a $100,000 price hike over what it was five years ago. On top of rising home prices, mortgage rates have also steadily increased over the past few years. Right now, the average mortgage rate on a 30-year fixed mortgage is 6.67%, whereas it was 5.30% this time last year.
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When you combine the current home prices with high interest rates and inflation, real estate is more expensive than ever. Many people who want to purchase a home struggle to find something they can realistically afford.
Fortunately, there are still quite a few mid-sized cities where you can buy property without breaking the bank. According to a recent WalletHub study, which evaluated 300 U.S. cities, here are the top 10 mid-sized locations to check out based on their overall affordability. Factors used in measuring overall affordability include housing, maintenance, average homeowners insurance premiums, cost of living and cost per square foot.
Aside from WalletHub, all other data are based on findings from the Federal Reserve Economic Data on 30-year fixed-rate mortgages, the Zillow Home Value Index (ZHVI) and the Missouri Economic Research and Information Center.
Here’s a look at the most affordable mid-size cities for homebuyers.
10. Columbus, Georgia
Total affordability score (WalletHub): 66.42
Overall ranking (WalletHub): 28 out of 300
2023 average house price (ZVHI): $151,845.79
Average monthly mortgage amount with 10% down (ZVHI): $879.13
With a cost of living index of 91, Georgia has the 12th lowest cost of living in the country. With just under 200,000 people, Columbus is a good mid-sized city for families looking for a quieter vibe with local shops and a lot of history. Groceries can be on the higher side, but the low cost of housing more than makes up for that.
9. Des Moines, Iowa
Total affordability score (WalletHub): 67.76
Overall ranking (WalletHub): 20 out of 300
2023 average house price (ZVHI): $196,219.39
Average monthly mortgage amount (Federal Reserve): $1,136.03
Iowa’s cost of living index is 89.7, making it the sixth cheapest state to live in. As the state’s capital, you might think that Des Moines would be more expensive than most cities. However, it’s still reasonably priced compared to many other mid-sized cities. It’s also a great place to buy real estate if you’re looking for an urban city feel but still want to enjoy plenty of green spaces.
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8. Fayetteville, North Carolina
Total affordability score (WalletHub): 67.77
Overall ranking (WalletHub): 19 out of 300
2023 average house price (ZVHI): $196,061.08
Average monthly mortgage amount (Federal Reserve): $1,135.12
When it comes to the overall cost of living, North Carolina ranks right in the middle with an overall index of 96.1 — just below the national average. On the whole, things like groceries, housing and utilities are all somewhat lower than what you’d find elsewhere.
Fayetteville, located about 65 miles from the capital city of Raleigh, is home to about 208,000 people and is cheaper than other parts of the state. It’s known for its historic buildings, museums and long-standing connection to the military.
7. North Las Vegas, Nevada
Total affordability score (WalletHub): 67.86
Overall ranking (WalletHub): 18 out of 300
2023 average house price (ZVHI): $386,600.30
Average monthly mortgage amount with 10% down (ZVHI): $885.28
Ranked 29th when it comes to cost of living, Nevada tends to cost slightly more than the rest of the country with a cost of living index of 101.3. That said, certain cities — like North Las Vegas, which is located just 10 miles from the Las Vegas Strip — are still reasonably priced. Plus, if you’re looking for a place with year-round hot weather and low taxes, it might be right up your alley.
6. Buffalo, New York
Total affordability score (WalletHub): 68.16
Overall ranking (WalletHub): 15 out of 300
2023 average house price (ZVHI): $210,551.74
Average monthly mortgage amount (Federal Reserve): $1,219.01
When you think of New York, chances are you’re thinking of the high cost of living of places like New York City. The state is ranked the third most expensive place to live in the country with a cost of living index of 125.1. Housing, in particular, ranks 173.3 — much higher than most other states.
However, there are still affordable small- and mid-sized cities in New York, including Buffalo. With plenty of parks, museums, great cuisine and art galleries, this city is still a great option for many families and individuals.
5. Grand Rapids, Michigan
Total affordability score (WalletHub): 68.45
Overall ranking (WalletHub): 13 out of 300
2023 average house price (ZVHI): $264,608.32
Average monthly mortgage amount (Federal Reserve): $1,531.98
While there are outliers, Michigan tends to be an affordable state to live in. It’s the 15th least expensive state to live in with a cost of living index of 92.7. Its housing index is lower than most other parts of the country at 80.9.
Although Grand Rapids has just under 200,000 residents, the Metro Grand Rapids area has around a million people. This makes it a perfect hybrid of suburban and urban lifestyles.
4. Augusta, Georgia
Total affordability score (WalletHub): 68.94
Overall ranking (WalletHub): 11 out of 300
2023 average house price (ZVHI): $177,489.50
Average monthly mortgage amount with 10% down (ZVHI): $1,027.59
Coming in just below Michigan in terms of overall cost, Georgia has a cost of living index of 91.0. But when it comes to housing, it’s even cheaper at only 78.5. Augusta benefits from the state’s overall affordability, while still having plenty to do — especially if you’re a golf or history lover.
3. Akron, Ohio
Total affordability score (WalletHub): 70.3
Overall ranking (WalletHub): 5 out of 300
2023 average house price (ZVHI): $114,398.36
Average monthly mortgage amount (Federal Reserve): $662.32
Cheaper than 30 other states, Ohio’s cost of living index is 94.0. Groceries tend to be on the higher side, but things like low housing prices more than makeup for that.
As a mid-sized city located about two hours from Columbus, Akron is a great place to settle down if you enjoy museums, theater and all four seasons
2. Toledo, Ohio
Total affordability score (WalletHub): 70.97
Overall ranking (WalletHub): 3 out of 300
2023 average house price (ZVHI): $110,428.03
Average monthly mortgage amount (Federal Reserve): $639.33
Like Akron, Toledo benefits from a lower cost of living than most other locations in the United States. The city is home to about 268,000 people and is located about 2 1/2 hours from the state’s capital. It’s also well-known for its art museums, science center, music, festivals and riverfront views.
1. Montgomery, Alabama
Total affordability score (WalletHub): 71.37
Overall ranking (WalletHub): 1 out of 300
2023 average house price (ZVHI): $135,885.28
Average monthly mortgage amount (ZVHI): $786.72
As the fifth cheapest place to live in the country, Alabama has an overall cost of living index of just 88.8. Housing prices are also quite low throughout the state with an overall index of 70.4. The capital of Alabama, Montgomery is located on the Gulf of Mexico and the Alabama River, making it a great place for water recreation enthusiasts.
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