A surge in demand for homes in the United States, in addition to limited housing inventory, has created a sellers market unlike anything seen in recent memory. Homes are now selling faster than ever before — and also for more money than ever before.
While rapidly rising housing prices may discourage many would-be buyers, there are parts of the country where home values are relatively low and affordable to a wider range of budgets.
Using data on median home value from the U.S. Census Bureau, 24/7 Wall St. identified the least expensive towns to buy a home. We included cities, towns, villages, and unincorporated communities with populations between 1,000 and 25,000 in our analysis. Nearly half of the towns on this list are located in Midwestern states — including nine in Michigan alone, and another eight in Illinois.
Home values in a given area are often a reflection of what residents can afford, and in every town on this list, the median household income is at least $10,000 lower than the $62,843 that the typical American household earns annually. Here is a look at the poorest town in every state.
Despite the lower incomes, home values in these areas are often low enough to make it less likely that buyers would need to rely on a mortgage. In every town on this list, the share of homeowners who are financing with a mortgage is below the 62.7% share of homeowners nationwide. This is the American city with the most foreclosures.