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15 big US cities where you can buy a house even if you make less than $100,000

15 big US cities where you can buy a house even if you make less than $100,000

Alcynna Lloyd

Pittsburgh, Pennsylvania.Sean Pavone/Shutterstock

Realtor.com identified 15 large US cities with the lowest incomes needed to afford a home.
Some of the most affordable cities for homebuyers who earn less are in the South and Midwest.

We're more than four months into 2024, and US mortgage rates show no signs of easing.

Persistently high home prices and wallet-squeezing inflation are sobering realities. According to a recent survey by nationwide property intermediary service IPX1031, 70% percent of Americans don't think they can swing buying a home this year.

But don't throw in the towel just yet.

Realtor.com has identified 15 large cities where homebuyers can make less than $100,000 a year — about the typical income of a household with two or more married or related members — and still afford to purchase a median-priced property.

"As a result of inflation, a six-figure salary doesn't stretch as far as it used to, but it continues to be a significant milestone for many households," Danielle Hale, chief economist at Realtor.com, told Business Insider.

While the overall income needed to comfortably buy a house in the US has increased by $5,900 since last year and median home prices have jumped significantly compared to a decade ago, prospective buyers in these cities won't spend more than 30% of their income on properties — a telltale sign of being cost-burdened.

Many of the cities that are more affordable for homebuyers are in the South, the Midwest, or the Mid-Atlantic states — which are known for their relatively cheaper costs of living. Not a single city from the West made the cut, underscoring the considerable cash needed to achieve homeownership in states like California relative to how much people make.

"In some areas, like the South, we're seeing an increase in smaller-footprint homes for sale, which helps dampen prices. Furthermore, in many of these regions, builders have done a better job of keeping up with housing demand," said Hale. "In part, the home prices in the West reflect the reality that the tech industry has played a significant part in boosting incomes in the region. However, we also see the impact of limited construction stifling supply and pushing up home prices."

Realtor.com determined where homeownership is most achievable based on income by choosing places where the typical person wouldn't spend more than 30% of their income to buy a home given a 205 down payment and a 30-year fixed-rate mortgage with current interest rates. Researchers also examined local taxes and home insurance costs.

Here are the 15 US cities where prospective buyers with relatively lower incomes can still purchase houses, according to Realtor.com.