Big city living, small-town affordability
It’s the eternal push and pull for many homebuyers: big city or small town?
There are obvious advantages to both.
The amenities that you find in a big city, like arts organizations, cutting-edge restaurants and vibrant public spaces, are a big draw for many. But there are big-city downsides, too, like more congestion and a perception of higher crime rates.
Small towns, on the other hand usually offer more space and a connection to nature. And the big benefit for many smaller metro areas is that housing prices tend to be lower than similar homes in bigger markets.
This decision is particularly important for first-time homebuyers, who are putting down roots in an area in which they’ll likely live for years. In this article, we find the cities that hit that sweet spot of big city amenities and small-town prices. Then, start your homebuying journey by getting pre-approved.
Big cities, lower price tags
We took a look at data from the Realtor.com® Economic Research team, along with insights from the experts at Research by Rate.com. We analyzed the 50 biggest housing markets across the country and are highlighting the ones that are the most affordable.
We’re also including the median price per square foot for each of these areas, because that’s the best way to compare home prices in different parts of the country. For example, the median home listing price in one city could be higher than another, but it may be because the square footage of the homes for sale there is larger. Only when comparing price per square foot do you get a more accurate comparison.
Metro ranking: 24
Median listing price: $249,900
Median price per square foot: $166
Pittsburgh is known as the Steel City, but there’s a lot more going on in this city than heavy industry. Known as the City of Bridges, it is home to three professional sports teams, many museums, cultural institutions, a zoo and an aquarium. It is also home to the lowest median listing price on our list, so it’s a great place for homebuyers who are looking for all the amenities of a big city—for less.
Metro ranking: 12
Median listing price: $250,000
Median price per square foot: $173
Detroit was once the car making capital of the world, and the auto industry still has a heavy influence on the local economy, and by extension, the lifestyle of the biggest city in Michigan. Just across the Detroit River from Windsor, Ontario, Canada, Detroit is known as a musical hotbed, giving rise to the genres of jazz, hip-hop, rock and punk. It is also home to sports teams in all the major professional leagues.
In 2013, Detroit became the largest U.S. city to declare bankruptcy, which is probably one reason that its home prices are among the lowest among major cities. However, the city has seen a renaissance since then and offers homebuyers a lot of cultural value for less money.
Metro ranking: 31
Median listing price: $255,250
Median price per square foot: $141
On the banks of Lake Erie, Cleveland is another city experiencing a renaissance after years of economic downturn. Home to renowned cultural institutions, museums, professional sports teams, a globally-recognized orchestra and the Rock and Roll Hall of Fame, this city is the second most populous city in Ohio, but also the least expensive for homebuyers.
This is also the city that has the lowest median price per square foot in our list, suggesting that your dollar goes the farthest in Cleveland.
Metro ranking: 47
Median listing price: $284,900
Median price per square foot: $183
Rust Belt cities and affordable homes
As you’ll notice, the top four cities on our list are all located in the Rust Belt, the parts of the United States that were built up through the first half of the 20th century only to decline in the second half. This was due to deindustrialization in the northern and Midwestern parts of the U.S. Other Rust Belt cities on this list include Rochester, NY at number 6. Many of these cities are seeing a reversal of fortune as they diversify industries and jumpstart economic growth.
Buffalo has that industrial background and is also close to the tourist mecca that is Niagara Falls. It is home to the oldest urban parks system in the country along with performing arts and museum institutions. In addition, 4 large universities and 2 major sports teams help establish the civic pride and its identity as the big city of Western New York.
Metro ranking: 20
Median listing price: $294,400
Median price per square foot: $167
Despite losing its professional football team a few years ago, St. Louis is still home to two other major sports franchises, as well as a handful of major universities. With a reemerging downtown area, including one of the highest regarded children museums in the country, St. Louis has much to offer homebuyers looking for value.
Metro ranking: 49
Median listing price: $295,000
Median price per square foot: $162
Another Rust Belt city in Western New York, Rochester has a celebrated music scene and tradition, in addition to major museums, universities and companies.
Metro ranking: 50
Median listing price: $297,000
Median price per square foot: $160
Metro ranking: 44
Median listing price: $327,450
Median price per square foot: $173
Birmingham and Louisville are two of the more exciting cities in the South to appear on our list, along with New Orleans and Memphis. Birmingham is an economic and industrial center of the South and is also home to the Talladega Superspeedway. Louisville is the largest city in Kentucky, and home to the Kentucky Derby.
Metro ranking: 42
Median listing price: $329,900
Median price per square foot: $173
Metro ranking: 46
Median listing price: $335,000
Median price per square foot: $181
For generations, New Orleans has been celebrated as a tourist destination with its rich jazz traditions along with public festivals like Mardi Gras. Home to two major sports franchises, the Crescent City is the largest city in Louisiana. In 2005, Hurricane Katrina ravaged this Gulf Coast city, and it is still recovering, which probably helps explain why it is also an affordable city.
Metro ranking: 45
Median listing price: $339,450
Median price per square foot: $163
Metro ranking: 34
Median listing price: $339,750
Median price per square foot: $160
The Circle City is home to professional football and basketball teams as well as a minor league baseball franchise. Perhaps best known as the home of the Indianapolis 500, this city is also the state capital of Indiana.
Metro ranking: 25
Median listing price: $344,500
Median price per square foot: $187
Metro ranking: 21
Median listing price: $352,225
Median price per square foot: $213
Metro ranking: 5
Median listing price: $369,900
Median price per square foot: $178
Houston is the largest city on our list, ranking as the fifth-biggest metro area in the country. Given that the rest of metros on our list tend to be amongst the smallest of the top 50 metros, what is it about Houston that’s different? Well, a few reasons put forth include tolerant zoning laws, abundant land availability and risks of hurricanes. Either way, “Space City” has a lot of big city thrills to offer, including professional sports teams, theaters and museums along with Johnson Space Center.
Where your housing dollar goes farther
As you can see from the cities listed above, there are still many ways to get everything you want in a home, including the culture, cuisine and nightlife options of a big city. And while we can offer many loan options that can make homeownership more affordable, the old saying about real estate always rings true: location, location, location.
With these cities, you’ll be likely to fall in love with your location as well as your monthly budget.
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