While U.S. home prices have risen at an annual rate of around 5% for the past few years, one important point about the increases is where the prices started from. Two 5% increases on a home that sold for $500,000 in 2015 puts the price of that home north of $550,000 today.
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It is still possible to buy a home in the United States for less than the two-year appreciation on that $500,000 house. There’s a catch of course: most of these homes are located either in the Midwest or the Rust Belt.
The Great Recession did not pass these cities by either. While problems remain, the housing experts at Realtor.com found that these cities have a strong sense of community, decent schools, strong infrastructure, and some great old homes built during the area’s boom times.
Realtor.com researchers looked at homes in the 500 largest U.S. metro areas and identified 10 with the lowest median home prices. They limited the results to only one city per state. Here’s their list along with the median price for the area and the median price in the most affordable ZIP code:
1. Marion, Indiana
> Median home price: $66,750
> Cheapest ZIP code and median home price: 46953; $45,000
2. Danville, Illinois
> Median home price: $69,700
> Cheapest ZIP code and median home price: 61832; $59,900
3. Pottsville, Pennsylvania
> Median home price: $69,900
> Cheapest ZIP code and median home price: 17901; $60,000
4. Bay City, Michigan
> Median home price: $88,900
> Cheapest ZIP code and median home price: 48708; $69,900
5. Weirton, West Virginia
> Median home price: $90,000
> Cheapest ZIP code and median home price: 43952; $85,000
6. Pine Bluff, Arkansas
> Median home price: $94,500
> Cheapest ZIP code and median home price: 71601; $25,200
7. Lima, Ohio
> Median home price: $95,000
> Cheapest ZIP code and median home price: 45801; $79,900
8. Elmira, New York
> Median home price: $109,000
> Cheapest ZIP code and median home price: 14904; $59,900
9. Topeka, Kansas
> Median home price: $109,000
> Cheapest ZIP code and median home price: 66616; $61,000
10. Cumberland, Maryland
> Median home price: $110,000
> Cheapest ZIP code and median home price: 21502; $94,900
Visit the Realtor.com website for more information and details.
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