Yahoo Finance In a Decade You’ll Finally Be Able To Afford a Home in These 13 Cities
Housing across the country is downright unaffordable right now. The average home value as of April 2023 was $339,459, with a 1-year growth projection rate of 4.8%. This means that, on average, housing prices are expected to grow significantly over the next year, with few signs of slowing down throughout the next decade.
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By 2033, in fact, the average U.S. home is projected to cost $542,501. Luckily, for savvy shoppers, not all cities will be so pricey. From coast to coast, there are a number of cities that are expected to have home prices under the national average within the next decade.
We took a look at metropolitan areas nationwide to see when homes are projected to dip below the U.S. average. If you are willing to wait, here are 13 cities that are expected to see more affordable home prices by 2033.
13. Madison, Wisconsin
April 2023 Home Value: $389,651
1-Year Growth Projection (%): 3.3%
Year Projected Home Value Will Drop Below the US Average: 2033
2033 Projected Home Value: $539,112
You'll have to wait 10 years to see homes in Madison drop below the national average, but your patience will pay off. Hold off on purchasing a home until 2033, and you'll pay over $3,300 less than the average home in the U.S.
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12. Yuba City, California
April 2023 Home Value: $408,854
1-Year Growth Projection (%): 2.7%
Year Projected Home Value Will Drop Below the US Average: 2033
2033 Projected Home Value: $533,670
If California is your ultimate destination, consider waiting until 2033 to buy a home in Yuba City. Home values are projected to finally drop below the national average in ten years.
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11. Trenton, New Jersey
April 2023 Home Value: $365,292
1-Year Growth Projection (%): 3.8%
Year Projected Home Value Will Drop Below the US Average: 2031
2031 Projected Home Value: $492,288
2033 Projected Home Value: $530,413
Homes in Trenton will remain over the national average until 2031, when they are expected to fall just below $493,000.
10. Medford, Oregon
April 2023 Home Value: $428,802
1-Year Growth Projection (%): 2.1%
Year Projected Home Value Will Drop Below the US Average: 2032
2032 Projected Home Value: $516,997
2033 Projected Home Value: $527,854
If the Northwest is calling your name, you might want to think about Medford, Oregon. But buying before 2032 will have you paying over the national average. Wait nine years, and you'll see more affordable home prices.
9. Las Vegas, Nevada
April 2023 Home Value: $414,567
1-Year Growth Projection (%): 2.3%
Year Projected Home Value Will Drop Below the US Average: 2032
2032 Projected Home Value: $508,716
2033 Projected Home Value: $520,416
Las Vegas remains one of the fastest-growing metropolitan areas in the country, but that doesn't mean home prices are falling any time soon. If you can hold off buying until 2032, home values are projected to drop below the national average.
8. Norwich, Connecticut
April 2023 Home Value: $349,586
1-Year Growth Projection (%): 3.9%
Year Projected Home Value Will Drop Below the US Average: 2027
2027 Projected Home Value: $407,396
2033 Projected Home Value: $512,519
You won't have to wait long for a bargain buy in Norwich. While the city had the largest 1-year growth rate at 3.9%, it is also projected to have home values under the national average by 2027.
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7. New Haven, Connecticut
April 2023 Home Value: $356,275
1-Year Growth Projection (%): 3.7%
Year Projected Home Value Will Drop Below the US Average: 2028
2028 Projected Home Value: $427,247
2033 Projected Home Value: $512,357
New Haven is also expected to see a quick climb in home values that will drop off over the next few years. Avoid buying until 2028, and you'll see average home prices under the national average.
6. Redding, California
April 2023 Home Value: $366,066
1-Year Growth Projection (%): 3.2%
Year Projected Home Value Will Drop Below the US Average: 2028
2028 Projected Home Value: $428,507
2033 Projected Home Value: $501,599
In five years, you'll see homes in Redding fall just below the national average in the United States. Wait until 2028 to buy property in the area, and you'll take advantage of the projected price drop.
5. Chico, California
April 2023 Home Value: $400,434
1-Year Growth Projection (%): 2%
Year Projected Home Value Will Drop Below the US Average: 2030
2030 Projected Home Value: $459,973
2033 Projected Home Value: $488,127
In Chico, you'll have to wait until 2030 to see home prices fall below the national average, but waiting until the new decade to buy will pay off. Home values are projected to be tens of thousands of dollars under the U.S. average by then.
4. Ann Arbor, Michigan
April 2023 Home Value: $383,835
1-Year Growth Projection (%): 2.3%
Year Projected Home Value Will Drop Below the US Average: 2029
2029 Projected Home Value: $439,945
2033 Projected Home Value: $481,838
If you bought a home in Ann Arbor now, you'd probably be paying over the U.S. average of $339,459. However, if you can wait until 2029, you'll see a substantial decrease in price. Home values are projected to fall nearly $10,000 under the national average by then.
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3. Baltimore, Maryland
April 2023 Home Value: $369,037
1-Year Growth Projection (%): 2.2%
Year Projected Home Value Will Drop Below the US Average: 2027
2027 Projected Home Value: $402,599
2033 Projected Home Value: $458,753
Avoid buying property in Baltimore before 2027 to take advantage of a projected price drop. Homes are expected to fall below the national average in under four years.
2. Minneapolis, Minnesota
April 2023 Home Value: $374,917
1-Year Growth Projection (%): 2%
Year Projected Home Value Will Drop Below the US Average: 2027
2027 Projected Home Value: $405,822
2033 Projected Home Value: $457,022
Another city you won't have to wait long to save big is Minneapolis. Hold off buying a home until 2027, and you will likely find yourself paying less than the national average.
1. Anchorage, Alaska
April 2023 Home Value: $373,431
1-Year Growth Projection (%): 0.3%
Year Projected Home Value Will Drop Below the US Average: 2026
2026 Projected Home Value: $376,802
2033 Projected Home Value: $384,786
If you are planning on moving within the next two years, then you might want to consider Anchorage for the biggest savings. Home values are projected to fall below the national average by 2026. But patience will pay off if you wait until 2033, when home prices are expected to be over $150,000 less than the U.S. average.
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Methodology: GOBankingRates took the overall U.S. median home value and projected its growth over 10 years using Zillow's February 2023-24 one-year forecast. This projection was then compared to the projections of the 250 largest metros in the U.S. AND the metros in the top 250 that currently have home prices above the national median, with those falling below the national median in the next 10 years (plus its projected growth rate over the same period) being deemed "affordable." For each metro over the next decade, GOBankingRates found the following factors: (1) year the metro will become "affordable"; (2) projected home value for that year; and (3) US average projected home value for that year. NOTE: GOBankingRates does not expect growth in home value to stay stagnant at one current rate for the next decade, but using these constant figures gives us an idea where certain markets are heading without unforeseen market disruptors in the future. All data used to conduct this study was compiled and verified on May 22, 2023.
This article originally appeared on GOBankingRates.com: In a Decade You’ll Finally Be Able To Afford a Home in These 13 Cities
