With the median home sales price having skyrocketed from $313,000 in Q1 2019 to $416,900 in Q1 2025, the personal-finance website WalletHub today released its report on 2025’s Most Affordable Cities for Home Buyers, as well as expert commentary.
In order to determine the most affordable cities for home buyers, WalletHub compared 300 U.S. cities across ten key metrics. The data set ranges from the costs of homes and their maintenance to tax rates and vacancy rates.
| Most Affordable Cities | Least Affordable Cities | ||
| 1. Flint, MI | 291. Pasadena, CA | ||
| 2. Detroit, MI | 292. New York, NY | ||
| 3. Pittsburgh, PA | 293. Burbank, CA | ||
| 4. Surprise, AZ | 294. Los Angeles, CA | ||
| 5. Akron, OH | 295. Glendale, CA | ||
| 6. Yuma, AZ | 296. Irvine, CA | ||
| 7. Memphis, TN | 297. Costa Mesa, CA | ||
| 8. Augusta, GA | 298. Berkeley, CA | ||
| 9. Fort Wayne, IN | 299. Santa Monica, CA | ||
| 10. Indianapolis, IN | 300. Santa Barbara, CA | ||
Best vs. Worst
- Flint, Michigan, has the most affordable housing (median house price divided by median annual household income) which is 9.7 times cheaper than in Santa Barbara, California, the city with the least affordable housing.
- Honolulu has the lowest median real-estate tax rate which is 10 times lower than in Paterson, New Jersey, the city with the highest.
- Flint, Michigan, has the highest rent-to-price ratio which is 14 times higher than in Santa Monica, California, the city with the lowest.
- Boise, Idaho, has the highest median home price appreciation which is 6.3 times higher than in Stamford, Connecticut, the city with the lowest.
- Miami Beach, Florida, has the highest vacancy rate which is 17.9 times higher than in Fontana, California, the city with the lowest.
To view the full report and your city’s rank, please visit:
https://wallethub.com/edu/
“When deciding where to buy a home, home prices alone aren’t a good enough indicator of how affordable things will be. You also have to consider how the average price compares to a typical income in the area, plus things like the overall cost of living and the costs of maintenance and taxes. The most affordable cities, like Flint, MI, Detroit, and Pittsburgh, PA, have low costs across several of these different metrics.”
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“Flint, MI, is the most affordable city to buy a home in 2025, boasting the lowest cost of living index in the country and the most affordable home prices relative to residents’ income. It also has the lowest median home price per square footage, at just $61. To put that in perspective, the price in the most expensive cities is over $1,000 per square foot.”
- Chip Lupo, WalletHub Analyst
Expert Commentary
What should home buyers consider when choosing a city to settle down?
“Homebuyers obviously look at proximity to employment, friends and family, and location-specific amenities when deciding where to live. Affordability has increasingly been an important factor as well. Job flexibility (for example, working remotely) has increased since 2020, making it possible for someone to work for a company located in a less affordable location while living in a more affordable one. In past years, redevelopment and urban resurgence in some Midwest cities have made them vibrant places to live offering recreational opportunities – all at a vastly more affordable price than coastal cities. But in every city, there is a wide range of neighborhoods, and in every city, it is a better investment to buy in areas that are safe, have good schools, access to public transportation, and public amenities.”
Andrea J. Boyack – Endowed Professor, University of Missouri School of Law
“There are so many factors, and one of the most important is the stage of life people are currently in. Senior living is so different than parents with young children. If I’m older, I would look at the cost of living, the cost of taxes, including the cost of dying. Medical care would be a major concern, along with proximity to family. If I’m younger with kids still in school, I am looking for affordable housing with good schools. Weather is always a factor.”
Cris de la Torre – Professor, University of Northern Colorado
What are your housing market predictions for 2025?
“The housing market can be varied. In some places with extremely hot housing markets in the past few years, such as Texas and Florida, the supply has begun to surpass the demand. The housing market will cool down. While in other places with relatively restricted regulations, the supply has not kept pace with demand, causing these markets to continue experiencing a mild increase.”
Lei Zhang, Ph.D. – Associate Professor, Old Dominion University; Editor, Review of Regional Studies
“Housing will probably get back to normal. If you check the for sale signs, anecdotally at least in my neighborhood, there are many more this year as compared to last year. I think buyers and sellers have been on the sidelines for about a year creating a pent up demand for both buyers and sellers. Interest rates will be coming down in the later half of year. I think the Federal Reserve will begin lowering the Fed Funds rate by July. But do not expect interest rates less than 4.5%.”
Cris de la Torre – Professor, University of Northern Colorado
How can state and local authorities increase home-buying affordability?
“As local authorities invest in their communities, they grow the value of local homes. Community investments include valuing public education, creating and maintaining public amenities (parks, libraries, recreational facilities, bike trails), attending to public safety issues, and investing in public transportation and related infrastructure. These sorts of investments make every part of the community more valuable and attract people to the community. It isn’t hard to understand this. People want to live where schools, public amenities, safety, and transportation is good… Communities may also want to consider whether local financial resources can be steered into neighborhood improvement and home-buying assistance. The federal government has for generations subsidized homebuying, but that subsidiary is not as robust today as it was pre-financial-crisis. Local governments should partner with local financial institutions to see whether there are localized versions of these incentives that can assist people who want to buy in obtaining enough initial funds to close on an acquisition.”
Andrea J. Boyack – Endowed Professor, University of Missouri School of Law
“Housing authorities need to be creative and provide for Accessory Dwelling Units (ADUs) which would improve housing density with little to no increase in infrastructure. ADUs take advantage of older, large lots that are often located in preferred areas of cities. Townhomes, condominiums and other multi-unit structures could receive tax incentives. Existing housing continues to age. The median age of residential homes last year was 41 years as compared to 31 years in 2005. Affordable housing will continue to be a difficult problem to solve. The last thing I would say to young homebuyers is to realize that your first home is not likely the last home, but it is the first step to finding and affording that dream home.”
Cris de la Torre – Professor, University of Northern Colorado
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