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Cost-Conscious Buyers Are Flocking to These 10 Affordable, Midsize Cities

A severe housing shortage, sky-high home prices, and equally towering costs of living in the priciest cities are pushing wannabe home buyers to seek out smaller, more affordable metro markets around the nation.

And they aren’t the places you’d expect.

Spokane, WA, about four hours inland from Seattle on the Idaho border, was the top destination for potential home buyers, according to a recent realtor.com® report. It was followed by other midsize markets far from their big-city cousins that offer lower prices, more homes on the market, and good jobs.

(To come up with our list, we looked at the housing markets that had the most realtor.com page views from people living in other metros. We also looked at the metros with the most residents who were considering leaving, based on their searching for homes in other areas. The metros that topped our list had the highest proportion of people wanting to move in rather than move out.)

“Buyers have traditionally sought refuge in the suburbs during times of high home prices,” says Javier Vivas, director of economic research at realtor.com. “But with today’s record highs, even the suburbs have gotten pricey, which has demand flooding outward as options disappear and prices move further out of reach in top job hubs.”

Spokane makes sense for those on a budget, as the median home price in the metro is an affordable $269,050—a bit less than the national median of $274,900, according to realtor.com data as of Feb. 1.

It’s also just over half of what it would cost to live in the Seattle metro area, the main source of the folks looking at homes in Spokane, where the median price is $527,520. Those who want to live within the city limits should be prepared to shell out a wallet-busting $675,000.

Local real estate broker Ken Sax, of Keller Williams Realty Spokane, wasn’t surprised his city made the list. He relocated to Spokane in the early 2000s from Southern California for the home prices, which were more than three times cheaper.

“It was a real opportunity to become an ‘equity refugee,’” says Sax, president of the Spokane Association of Realtors®. Prices were so high in California that he couldn’t afford to buy a home in the region and build equity.

He’s seeing more people like him move in, as working from home becomes more commonplace. This frees up employees to move—and save some moolah on housing, taxes, and just about everything else.

The most popular midsize markets also boast a larger inventory of homes for sale—a big selling point for prospective buyers. In the largest 100 metros, only 0.9% of homes are on the market. That’s compared with an average 1.3% for the top 10 markets to watch.

Job growth is also an incentive. The average unemployment rate of the metros is 3.9%, compared with a national rate of 4.1%.

Those are strong lures. Boston, where the median metro price is $499,950, was the main source of potential buyers looking at Portland, ME. The median home price there is $349,050. Los Angeles residents frustrated by the median home price of $724,022 were the main folks looking at much more reasonably priced Bakersfield, CA, with a $241,800 median price tag.

“The markets on this list offer affordable housing options and a chance to move up for those who are willing to change jobs or take on longer commutes,” says Vivas.

America’s top markets to watch

1. Spokane, WA
2. Portland, ME
3. Knoxville, TN
4. Deltona, FL
5. Boise, ID
6. Jacksonville, FL
7. Charleston, SC
8. North Port, FL
9. Bakersfield, CA
10. Chattanooga, TN

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Source: Real Estate News and Advice – realtor.com » Real Estate News