As home prices and mortgage rates remain stubbornly high, finding an affordable place to buy a home has become a nearly impossible dream for many Americans.
The national median home price hit $419,000 in early 2025, pricing out potential buyers across the country. And with mortgage rates hovering near 7%, even modest homes now come with hefty monthly payments.
A new WalletHub study is naming the most and least affordable cities for homebuyers, based on more than just listing prices.
The ranking of 300 cities is based on 10 key affordability metrics, including home-price-to-income ratios, rent-to-buy comparisons, property taxes, insurance costs, vacancy rates and housing availability.
Here’s a closer look at the three cities that topped the list for overall affordability, and why they stand out despite today’s tough housing market.
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Top 3 most affordable cities in the US
The cities at the top of the list aren’t solely based on the lowest home prices, but they offer the best balance of income, housing inventory and ownership value, according to WalletHub.
3. Pittsburgh, Pennsylvania
Homes in Pittsburgh may cost more than the No. 1 and 2 spots on the list, but WalletHub ranks it third thanks to strong fundamentals.
It has one of the best rent-to-buy ratios in the country, meaning purchasing a home often makes better financial sense than renting. The median home price is also only 3.8 times the city’s average household income, which is considered a sustainable and healthy affordability benchmark.
On top of that, Pittsburgh ranks 14th in housing availability in WalletHub’s study, offering buyers more options than most metros. Combine that with a stable economy, robust job market and high livability, and Pittsburgh becomes the most balanced city in the top three.
2. Detroit, Michigan
Detroit ranks second in affordability according to WalletHub, largely due to its extremely low home prices relative to local income — the second-lowest price-to-income ratio in the country. The median price per square foot is just $87, and many homes are still listed well under six figures. That makes Detroit one of the few large U.S. cities where homeownership remains financially accessible.
The city also has a vacancy rate of 22.1%, one of the highest in the nation. While that reflects lingering effects of population loss and economic decline, it also gives buyers considerable leverage and a wide range of options. WalletHub notes that Detroit, like Flint, has a favorable rent-to-buy ratio, meaning it often costs less to buy than rent — a key driver of its high ranking.
Like Flint, Detroit’s low housing costs are driven by long-term economic decline and urban flight — though some neighborhoods are seeing investment and renewal.
1. Flint, Michigan
Flint tops WalletHub’s affordability list as the most affordable city in the U.S. to buy a home, thanks to a rare combination of factors. It has the lowest price per square foot in the study at just $61, and homes in the city are also the most affordable relative to local incomes. WalletHub also notes Flint’s high rent-to-price ratio, which means it’s often cheaper to buy a home than rent one — a rare dynamic in today’s housing market.
On top of that, Flint has a 21% vacancy rate, giving buyers more choices and leverage when shopping for homes. This high inventory contributes to the city’s affordability, even though it also signals a weaker housing demand.
However, affordability doesn’t always mean livability. Flint has long struggled with economic hardship and infrastructure issues, most notably its ongoing water crisis. High vacancy rates reflect a still-recovering housing market and weak demand in some areas.
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The 3 least affordable cities for homebuyers
While some cities offer a financial foothold for buyers, others have reached sky-high prices and offer limited inventory.
- Irvine, CA
- Santa Monica, CA
- Santa Barbara, CA
These cities rank at the very bottom of WalletHub’s affordability list. Each city’s affordability metrics make it nearly impossible for median-income households to purchase a home. Buyers in these markets face high prices, low inventory and often intense competition.
What this data means for you
Median home prices have jumped from $313,000 in 2019 to $419,000 today, while the 30-year fixed mortgage rate has risen to 6.81%, a sharp climb from the historic low of 2.65% in 2021.
With prices rising, homebuyers might consider other factors when determining whether they can afford a home, and the WalletHub study shows that affordability also depends on factors like how local home prices compare to income, property taxes, vacancy rates and cost of living.
Cities like Flint and Detroit top the list thanks to bargain home prices, but buyers have to weigh those savings against real challenges, like aging infrastructure, limited job opportunities and long-term investment potential.
A city like Pittsburgh, while more expensive up front, offers a more balanced equation: strong rent-to-buy value, healthy inventory and better access to amenities.
Thinking of relocating?
Before packing your bags for a more affordable city, ask yourself these questions to ensure you’re making the right long-term move.
- Does this city have the jobs, schools and health care I need?
- Are home prices low because of short-term issues, or long-term disinvestment?
- Can I afford the full cost of homeownership — including taxes, insurance and repairs — at current interest rates?
- Will I be happy living here, not just paying less?
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
