The US economy has taken many hits over the past few years, increasing the cost of living. That includes the median home price that rose to $392,000 in the first quarter of 2022.
Various factors are driving this price hike. One of that is the growing demand and limited supply. The other is a dip in interest rates that adversely affected the profit margins.
First-Time Home Buyers
Despite the acclaimed low-interest rates, many potential buyers cannot afford to buy a home at their current price. It’s more difficult for first-time home buyers than those who already own a property.
According to the National Association of Realtors (NAR), an estimated one million rental households or private households cannot afford housing of their own. Since 2014, this is the lowest share of first-time home buyers has gone. In 2022, only 26% of the buyers are first-time home buyers, and real estate costs are still rising.
A lack of economically feasible options has forced buyers off the housing market. But there are still counties and regions that are relatively affordable.
Median Home Values
There is no such thing as cheap property. Everything is relatively cheaper and affordable when it comes to real estate. The East and West coasts have the highest median prices in the US, over $1 million.
These areas include New York County and the counties of California. In these parts, you pay extra for the experience of a big city and famous state.
Cheapest Counties In The US
The more affordable and cheap counties are in the Midwest and South. The median home value in these counties is less than $150,000. These include the Todd and Mellette Counties in South Dakota. The Kent and King Counties in Texas. And the McDowell County in West Virginia.
Cheapest Metros In The US
You would notice that some of the counties in less populated or less urbanized areas are priced low. The additional amenities of living and city lifestyle have their share in the price of a property.
The housing market is extremely competitive and buying a home in a large metro is hard. People are looking for bustling cities where they can settle down and have multiple job options.
Fortunately, not all the metros are bought out of the market or are insanely expensive. There are undervalued markets where you can find a house.
As per NAR, a metro is any area with a population of at least 200,000. The following list of the cheapest metros includes locations with relatively fair job prospects and opportunities for growth:
Daphne-Fairhope-Farley & Huntsville, Alabama
San Antonio-New Braunfels & Dallas-Fort Worth, Texas
Palm Bay-Melbourne-Titusville & Pensacola-Ferry Pass-Brent, Florida
Spartanburg, South Carolina
The housing market will not remain idle and is expected to become pricier with time. To buy a home in the cheapest place means you must make decisions. There are relatively cheap metros and cheap counties, but it depends on your financial situation.