Realtors rank Detroit, MI as having the most affordable homes in the country.
According to the latest data Detroit, Michigan rules for having the most affordable housing in America. The National Association of Realtors reports the average home price in Detroit is still just $64,110. And that could buy you a four bedroom, two bath home.
To put the bargain price of Detroit real estate in perspective compare it to the Realtors’ list of other cities as of September 2016. In Saratoga, California the average home price is $2,453,718. Of the top 10 least affordable U.S. cities the cheapest is still more than $1.4 million more expensive than the average home in Detroit, for a home with the same number of bedrooms. In fact, you could purchase a four bedroom home in each of the 10 most affordable destinations for less than a home in Los Gatos, CA.
Yes, Detroit may have seen its reputation rocked for a moment, but by virtually any standard it’s still cheap. Consider that many of the tiny half DIY houses you see on TV cost more than $60,000. Thanks to technology you can live in Detroit and make the same money as anywhere else too. The bulk of the population is going to be working remotely soon, if they aren’t already. So why pay so much to live in some cities and barely make ends meet when you could have so much left over each month to actually live and give? For the price of renting a tiny studio in many cities you could own your own home free and clear with no mortgage in Detroit in 5 years or less. Many in other major cities can’t even dream of owning their own place.
Eventually this disparity in housing costs will make a substantial difference in where the best companies relocate, where the best talent chooses to live, and where the best real estate investment returns may be.