Although owning a home has become increasingly more difficult in the past few years, thanks to skyrocketing home prices and low available housing, there are cities in the US where homeownership has been thriving.
Owning a home is a vital part of the American dream. Although pursuing this feat is every American’s right, only a few manage to go through the hoops to become successful homeowners.
In fact, in the past few years, the number of homeowners in America has been in a decline with a percentage total of only 63.9 from its peak of 69.2 percent back in 2004. From this, only 35.6 percent are millennials or those individuals aged 35 and below.
This might seem worrisome but when you take a look at the overall situation, it begins to make a lot more sense.
For one, student loan debt has been at its highest, now at a total of $1.3 trillion spread through 44 million borrowers. Individually, that’s around $37,172 per borrower.
Not only that. The continued pressure put by scarce housing inventory has pushed home prices to record-breaking figures in the past year. And with mortgage interest rates projected to increase, more home buyers are going to have to think twice about their decision to take on debt as expensive as a home loan.
Though somber it may all sound, the situation is not uniform across all markets in the United States. In fact, a report from real estate site realtor.com revealed that homeownership is actually rising in some US cities.
Let’s have a look.
With a homeownership rate of 68.7 percent, this Wisconsin city is getting back on its feet after decades of economic turbulence. Along with this recent financial boom, the housing market in the city is now experiencing a surge, with a staggering 11 percent increase in just a span of three years. The average price of homes in Milwaukee is at $224,950.
With an estimated average growth of 10.5 percent in the past three years, the city of Charlotte in North Carolina now has a homeownership rate of 62.8 percent. The median home price of properties for sale in this city is higher than the national average at $327,050.
The city made eternal by blues and rock and roll, Tennessee is one of the rising stars in homeownership. With an average rate of 61 percent, it has increased by 9.3 percent within the previous three years. If you’re looking for a great place to settle in with affordable living standards, Memphis is a topnotch choice with only $195,050 in median home price.
With a median home price that is slightly above the national figure, Baltimore, a rich and historical Maryland city offers great homeownership alternatives for buyers priced out by the more expensive Washington, D.C. market. For $300,000, you can own a home in Baltimore which for the past three years has increased by 7.3 percent to its current homeownership rate of 68.4 percent.
Rockstar Billy Joel would have to make a new, updated tune about his good old Allentown as this city in Pennsylvania emerges from the shadows to wake into its own kind of economic renaissance. As major multinational companies set camp in Allentown’s grounds, the city’s real estate industry is positively taking the impact. Its homeownership rate increased by 7.3 percent in the past few years to an outstanding 74.8 percent. All these, while maintaining home price average at affordable levels: $225,000.
Could you imagine Silicon Valley in the west coast? Only that rent’s way more affordable and you can even buy a home at an insanely (relatively) affordable price of $174,950? (That’s way below the national price average!)
Welcome to Pittsburg where billion-dollar tech giants like Intel and Google are rapidly changing the whole industry, causing homeownership rate in the city to surge by 7.2 percent in just a few years to 74 percent.
Maybe the Breaking Bad charm broke through. With its unique cityscape and architecture, Albuquerque certainly has some great things to offer for those who decide to settle in. In the recent years, this city in New Mexico has seen an increase in homeownership rate by 5.7 percent to 66 percent. The average home value is priced at $239,950.
Homeownership in the city of Nashville in Tennessee has been in an upward movement in the recent years. Home prices have gone wild, increasing at a mind-blowing rate of 89 percent in five years. Although the average home price in the city is one of the most expensive in this list ($359,050), it remains “relatively affordable” compared to other cities in the country.
With the new tax rule, the city of Dallas, Texas, which doesn’t place any state income taxes in the first place, is likely going to attract even more people.
Historically, Dallas has always been an affordable city to live in. Its current homeownership rate is at 60.7 percent and the average price of a home in the city is at $339,950.
With the lowest average home price in this list, the city of Syracuse in New York has a homeownership rate of 66.5 percent. Median home value is at $149,950 but you can find properties listed for even lower than the median.
If you’re shopping for a home, it might be worth your while to check out these booming cities.Click to See the Latest Mortgage Rates»