The 20 Most Cost-Effective Housing Markets in America

The median listing price of a home increased from $403,333 in January 2023 to $420,000 in November 2023. However, this is still lower than the record high of $449,000 in June 2022. This is the slowest price growth since 2016, with an annual growth rate of 0.9 percent for the median list price, which is down from 2.5 percent in April. These cooling tendencies are encouraging for those looking to purchase a home, especially in light of the significant spike in housing prices in 2021.

Homeownership expenses in the first quarter required only 29.9 percent of a typical income, which is a slight decrease and a good sign for those hoping to become homeowners. However, it’s important to note that this percentage is still higher than the typical lending criteria, which only permits a debt-to-income ratio of 28 percent. This means that expenses related to the home shouldn’t exceed 28 percent of the earnings.

Homes in certain locations are significantly more affordable, despite the national ratio being higher than the industry average indicating unaffordability. CEOWORLD magazine has examined the U.S. Home Affordability Report for the first quarter of 2023 and identified the top 20 housing markets with the most affordable homes. The research estimated the amount of income required for significant house ownership expenses on a median-priced home, assuming a loan of 80% of the purchase price and a maximum “front-end” debt-to-income ratio of 28%. Affordability for typical wage earners in 572 counties was then calculated, and the percentage of yearly wages required to cover the median monthly cost of housing was used to rank the counties.

1. Macon County, Illinois
   Percentage of average monthly salaries in the area required to cover housing expenses: 9.9%
   Average yearly income:  $64,259 (7.7% YOY growth)
   Q1 2023 median price of a property sold: $82,000  (-5.7% YOY growth)
   Salary required annually to purchase a property at the median price $26,677
   Population: 104,331
   Portion of: Decatur, IL, metro area
2. Peoria County, Illinois
   Percentage of average monthly salaries in the area required to cover housing expenses: 10.4%
   Average yearly income: $70,135 (8.7% YOY growth)
   Q1 2023 median price of a property sold: $93,500 (-6.5% YOY growth)
   Salary required annually to purchase a property at the median price $32,858
   Population: 182,439
   Portion of: Peoria, IL, metro area
3. Schuylkill County, Pennsylvania
   Percentage of average monthly salaries in the area required to cover housing expenses: 11.1%
   Average yearly income: $51,129 (7.0% YOY growth)
   Q1 2023 median price of a property sold: $79,000  (36.1% YOY growth)
   Salary required annually to purchase a property at the median price $21,880
   Population: 143,308
   Portion of: Pottsville, PA, metro area
4. Rock Island County, Illinois
   Percentage of average monthly salaries in the area required to cover housing expenses: 12.3%
   Average yearly income: $68,172 (4.8% YOY growth)
   Q1 2023 median price of a property sold: $106,000 (-5.9% YOY growth)
   Salary required annually to purchase a property at the median price $37,402
   Population: 144,694
   Portion of: Davenport-Moline-Rock Island, IA-IL, metro area
5. Wayne County, Michigan
   Percentage of average monthly salaries in the area required to cover housing expenses: 12.7%
   Average yearly income:  $71,851 (5.7% YOY growth)
   Q1 2023 median price of a property sold: $130,000 (-3.7% YOY growth)
   Salary required annually to purchase a property at the median price $39,607
   Population: 1,789,781
   Portion of: Detroit-Warren-Dearborn, MI, metro area
6. Bibb County, Georgia
   Pct. of local avg. wages needed to afford monthly housing costs: 13.4%
   Average yearly income: $51,506 (4.5% YOY growth)
   Q1 2023 median price of a property sold: $103,500 (9.1% YOY growth)
   Salary required annually to purchase a property at the median price $28,574
   Population: 156,711
   Portion of: Macon, GA, metro area
7. Saint Clair County, Illinois
   Percentage of average monthly salaries in the area required to cover housing expenses: 13.8%
   Average yearly income:  $54,366  (6.2% YOY growth)
   Q1 2023 median price of a property sold: $100,000 (-28.6% YOY growth)
   Salary required annually to purchase a property at the median price $42,998
   Population: 258,597
   Portion of: St. Louis, MO-IL, metro area
8. Montgomery County, Alabama
   Percentage of average monthly salaries in the area required to cover housing expenses: 14.1%
   Average yearly income:  $55,744 (6.1% YOY growth)
   Q1 2023 median price of a property sold: $128,000 (-3.7% YOY growth)
   Salary required annually to purchase a property at the median price $31,100
   Population: 229,072
   Portion of: Montgomery, AL, metro area
9. Saginaw County, Michigan
   Percentage of average monthly salaries in the area required to cover housing expenses: 14.3%
   Average yearly income:  $55,055 (5.4% YOY growth)
   Q1 2023 median price of a property sold: $112,950 (-5.9% YOY growth)
   Salary required annually to purchase a property at the median price $33,703
   Population: 190,540
   Portion of: Saginaw, MI, metro area
10. Robeson County, North Carolina
    Percentage of average monthly salaries in the area required to cover housing expenses: 14.5%
    Average yearly income: $43,277 (6.9% YOY growth)
    Q1 2023 median price of a property sold: $97,350 (-28.7% YOY growth)
    Salary required annually to purchase a property at the median price $29,708
    Population: 118,836
    Portion of: Lumberton, NC, metro area
11. Caddo County, Louisiana
    Percentage of average monthly salaries in the area required to cover housing expenses: 14.5%
    Average yearly income:  $54,132 (7.3% YOY growth)
    Q1 2023 median price of a property sold: $120,350 (-18.7% YOY growth)
    Salary required annually to purchase a property at the median price $34,146
    Population: 239,775
    Portion of: Shreveport-Bossier City, LA, metro area
12. Lucas County, Ohio
    Percentage of average monthly salaries in the area required to cover housing expenses:  14.5%
    Average yearly income: $58,292 (6.4% YOY growth)
    Q1 2023 median price of a property sold: $115,000 (-8.0% YOY growth)
    Salary required annually to purchase a property at the median price $35,293
    Population: 431,212
    Portion of:  Toledo, OH, metro area
13. Saint Louis City County, Missouri
    Percentage of average monthly salaries in the area required to cover housing expenses: 14.9%
    Average yearly income: $72,839 (5.6% YOY growth)
    Q1 2023 median price of a property sold: $160,000 (2.5% YOY growth)
    Salary required annually to purchase a property at the median price $41,583
    Population: 302,787
    Portion of: St. Louis, MO-IL, metro area
14. Sangamon County, Illinois
    Percentage of average monthly salaries in the area required to cover housing expenses:  15.2%
    Average yearly income: $62,855 (3.3% YOY growth)
    Q1 2023 median price of a property sold: $125,000 (-7.4% YOY growth)
    Salary required annually to purchase a property at the median price $39,920
    Population: 196,759
    Portion of: Springfield, IL, metro area
15. Calhoun County, Michigan
    Percentage of average monthly salaries in the area required to cover housing expenses: 15.2%
    Average yearly income: $61,165 (3.6% YOY growth)
    Q1 2023 median price of a property sold: $132,000 (1.5% YOY growth)
    Salary required annually to purchase a property at the median price $32,028
    Population: 134,207
    Portion of: Battle Creek, MI, metro area
16. Jefferson County, Alabama
    Percentage of average monthly salaries in the area required to cover housing expenses: 15.2%
    Average yearly income: $66,911 (6.9% YOY growth)
    Q1 2023 median price of a property sold: $159,950 (-11.1% YOY growth)
    Salary required annually to purchase a property at the median price $44,978
    Population: 672,550
    Portion of: Birmingham-Hoover, AL, metro area
17. Mercer County, Pennsylvania
    Percentage of average monthly salaries in the area required to cover housing expenses: 15.5%
    Average yearly income:  $50,752 (7.3% YOY growth)
    Q1 2023 median price of a property sold: $112,600 (-2.1% YOY growth)
    Salary required annually to purchase a property at the median price $31,546
    Population: 111,216
    Portion of:  Youngstown-Warren-Boardman, OH-PA, metro area
18. Calcasieu County, Louisiana
    Percentage of average monthly salaries in the area required to cover housing expenses: 15.6%
    Average yearly income: $59,878 (5.6% YOY growth)
    Q1 2023 median price of a property sold: $149,950 (-13.1% YOY growth)
    Salary required annually to purchase a property at the median price $40,061
    Population: 212,646
    Portion of: Lake Charles, LA, metro area
19. Saint Lawrence County, New York
    Percentage of average monthly salaries in the area required to cover housing expenses: 15.8%
    Average yearly income: $55,705 (6.8% YOY growth)
    Q1 2023 median price of a property sold: $112,282 (22.7% YOY growth)
    Salary required annually to purchase a property at the median price $25,924
    Population: 108,836
    Portion of: Ogdensburg-Massena, NY, metro area
20. Fayette County, Pennsylvania
    Percentage of average monthly salaries in the area required to cover housing expenses:  15.9%
    Average yearly income: $47,541 (7.3% YOY growth)
    Q1 2023 median price of a property sold: $117,650 (17.0% YOY growth)
    Salary required annually to purchase a property at the median price $27,631
    Population: 129,443
    Portion of: Pittsburgh, PA, metro area

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