While much of the US is in a dire affordability crisis, analysts still rank Detroit as one of the most healthy and affordable cities for housing.
Affordability has been dramatically eroded across much of the United States in the last couple of years. While jobs and wages haven’t gone up much, house prices and rents have soared from coast to coast. Many are being priced out of their neighborhoods and cities. This is only likely to be made far worse by the recent hurricanes which have wiped out so many housing units and disrupted so many people’s income, as well as rising interest rates. The recent Equifax hack could make this even worse as hundreds of millions of Americans could see their credit destroyed in the months and years to come.
Fortunately, there are still a few places in America that offer the ability to live comfortably on a middle class income. That’s those earning $50,000 to $125,000 per year according to Northwestern Mutual. Go Banking Rates defines ‘living comfortable’ as being able to follow the 50-30-20 rule. That means being able to cover your necessities, including housing with 50% of your income, having 30% for discretionary spending, and being able to save 20% of your income.
According to Fox Business, the top five destinations for being able to live like this in 2017 are:
- El Paso, TX
- Springfield, MO
- Lubbock, TX
- Albuquerque, NM
- Detroit, MI
Detroit, Michigan is heralded as one of the best for recent job growth and revitalization. Data from Zillow also shows Detroit as one of the strongest and healthiest housing markets in America. While some real estate markets may have peaked already in this cycle, Zillow predicts strong home value growth ahead, and calls it a balanced market, with rents and home prices still at great discounts from previous highs. This makes it both a great city for those needing to relocate to a more affordable place to live, and those needing new investments with more promising returns.