Buying a house in 2018 may seem like a tall order in 2018. Plenty of markets are seeing rising prices which may force some buyers out of the market. However, these are the best cities to buy a house where the buyer still has some good purchasing power.
Supply and demand are crucial in the housing market. For several years, the supply has not met up with the demand. This has caused prices to increase.
A First American analysis of home values that factors in local wages and mortgage interest rates in large cities found a 6.4% price increase nationally in March. But, in some markets, like Washington, D.C., home prices have steadied or even declined, according to First American’s Real Home Price Index.
As a result, there are a few markets where buyers still have some good purchasing power.
Best Cities To Buy A House This Year
- Providence, Rhode Island
- Chicago, Illinois
- Portland, Oregon
- Virginia Beach, Virginia
- Raleigh, North Carolina
- Philadelphia, Pennsylvania
- Hartford, Conneticut
- Memphis, Tennesee
- Oklahoma City, Oklahoma
- Baltimore, Maryland
- Washington, D.C.
- Pittsburgh, Pennsylvania
These cities reflect markets where, when factoring wages and median home values, home-buyers have the best purchasing power. These are not the best cities to buy a house when looking at the relative cost of housing. For example, home prices in Chicago and Washington, D.C. are well above the national average.
Check out a comparison of Washington, D.C. costs vs San Francisco below.
It is only when looking at relative wages and median home values that these 12 cities make the list. Relative to the cost of housing in the area, buyers have more purchasing power in these cities than elsewhere.
It’s All About Location
Location is a big factor when it comes to real estate. Even though these markets have relatively strong consumer purchasing power, that doesn’t mean home prices are low and that’s why location matters.
City vs City knows location matters. That’s why we calculate costs at the zip-code level when determining your cost of living expenses. Simply input your data and your zip code and let City vs City do the rest.
If you’re thinking of moving, City vs City allows you to compare your living costs against the city of your choice. As a result, you’ll see a side by side comparison of costs and see how your expenses would change.
If you’re considering a move, don’t make a move without downloading City vs City first.