Today, with inflation and the cost of living on the rise, more and more Americans are looking for relief from the financial burden of their day-to-day life. Although many still aspire to achieve financial goals like homeownership, the sad truth is that this goal remains out of reach for many — at least in some of the biggest cities in the country.
WalletHub recently released a study detailing the most affordable cities for homebuyers. The number-one city on that list is Flint, Michigan, followed by Detroit, Michigan, in second place (albeit with a pretty significant jump of five percentage points).
For experts, this list is hardly surprising. Many of the cities that top this list are among the least in-demand cities in the country. Housing prices tend to correlate with demand, meaning that areas where people have historically wanted to live tend to have more expensive homes. Conversely, because these cities have cheaper homes, it stands to reason that there is significantly less demand for housing.
“This list makes sense. These are areas that have seen a drop in job opportunities, which means the demand for housing and other services has dropped as well, leading to a more affordable market in the area,” explains Roger Vance, CEO of Safe Ship Moving Services, a moving brokerage specializing in interstate household goods transportation. “This is typically offset by the lack of opportunity in comparison to more expensive areas such as New York City or Miami.”
“Cities like Flint, Detroit, Cleveland, and Memphis have been dealing with population loss and economic restructuring for decades, and that long-term demand softness naturally suppresses both home prices and cost-of-living metrics,” says Doug Sullinger, the Founder and CEO of Baizel AI, an AI-powered platform focused on improving how commercial real estate site selection decisions are made. “I lived in that market for 20 years. They are still rebounding from the 2000s. What’s more interesting is seeing Sun Belt markets, such as Surprise and Yuma, showing up alongside the Rust Belt states.”
Why certain states have cheaper homes than others
Looking at the list, you might notice certain trends, such as specific regions and even states that appear multiple times. For example, Michigan holds the top two spots, while Ohio and Arizona have the most spots in the top 20. This phenomenon might be explained by the infrastructure and economic conditions of these markets.
“Ohio’s affordability is structural,” Sullinger explains. “It reflects years of slow population growth, legacy industrial decline in its major metros, and a housing stock that never got overbuilt during the 2000s boom the way Sun Belt markets did. Prices there aren’t necessarily dropping; they just never ran up the way coastal or high-growth markets did.”
“Arizona is more nuanced,” he continues. “Markets like Surprise and Yuma sit in the shadow of the Phoenix metro, which saw significant price appreciation post-COVID. As Phoenix became less accessible, demand naturally spilled into secondary Arizona cities, but supply there is relatively elastic, which has kept prices in check. We’re also seeing some cooling in the broader Arizona market as remote work tailwinds normalize.”
Should you move to a state with cheaper home prices?
Americans might wonder what this truly means for them. Should they pack up their stuff and buy a house in one of these cheaper areas? According to experts, not so fast. There are more factors to consider before making a hasty move. While relocation might be an option for those of the “digital nomad” class — remote workers who can complete their job from virtually anywhere — it might not be as practical a solution for those looking for a job in the new place they call home.
“Cost-driven relocation is accelerating, particularly among remote workers, retirees on fixed incomes, and younger buyers priced out of gateway cities,” Sullinger explains. “The challenge for markets like Flint or Memphis is that affordability alone doesn’t close the deal. Job market depth, quality-of-life amenities, and infrastructure investment all factor into the decision. Cities like Pittsburgh and Indianapolis have a clearer path here because they’ve paired affordability with genuine economic diversification (tech, healthcare, education), which makes them more compelling relocation destinations than pure value plays.”
“I don’t anticipate a huge rush to these areas to take advantage of the more affordable real estate market due to the lack of high-value employment opportunities,” adds Vance.
So before you call the movers and your realtor, step back and look at your situation. Even though these cities might offer cheaper housing opportunities, do they offer everything else you need, including job opportunities, quality schools for your children, and the type of leisure activities you enjoy doing after a hard day’s work? It might be cheaper, but if you’re making significant sacrifices for cheaper housing, are you really getting that good of a deal?
