SAN FRANCISCO–In which cites can credit union members find the most affordable housing?
According to an analysis of 152 U.S. cities by Scholaroo that rated housing affordability according to a number of parameters, such as the average home value and the average amount of property taxes, the company said it found:
- Of the top 10 cheapest cities to buy a home this year, nine are in the South. The only exception is Fort Wayne, Indiana, which ranks 9th overall.
- Alabama stands out for having three cities – Montgomery, Birmingham, and Mobile – as the cheapest places to buy a house in the whole country, Schoolaroo reported.
- Eight out of the top 10 costliest cities to purchase a home are situated within California, and among them, San Francisco stands as the second-most expensive in the nation.
- Yonkers and New York City, despite their high real estate costs, are expected to experience minimal growth in the upcoming years, with projected increases of only 0.2% and 0.43% respectively.
Projection of the median home value over the next three years
The Methodology
Scholaroo said it undertook a comprehensive analysis of 152 cities throughout the United States to pinpoint the most economical choices for home purchase.
“This assessment concentrated on the Real Estate Market aspect, encompassing four pertinent categories, each allocated a distinct weight. Ratings were assigned on a scale from 0 to 100 for each category, with 100 representing the highest attainable score,” Scholaroo said. “Following this, the data team computed the weighted mean for each city across all categories to establish its comprehensive score. Leveraging these scores, the cities were systematically arranged to ascertain the most economically viable choices for house acquisition.
The Categories
Median Home Value: Triple Weight (42.86 points)
The median home values across the country in the first quarter of 2023.
Average Monthly Household Income: Regular Weight (14.29 points). The average monthly household income in each state.
Mortgage Payment to Monthly Income Ratio: Double Weight (28.57 points)
The mortgage-to-income ratio in each state.
Median Real Estate Taxes: Regular Weight (14.29 points)
The annual median real estate taxes.
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