DETROIT – A new study conducted by SmartAsset shows Detroit is among the most affordable big cities in the United States to live in.
Detroit is listed at No. 2 on the list of most affordable big cities to live in. No. 1 is Fort Wayne, Indiana. Buffalo, New York comes in at No. 3, with Montgomery, Alabama and Pittsburgh, Pennsylvania rounding out the top five. Toledo comes in at No. 6, just outside the top five.
The study looked at the total closing costs, taxes, insurance and mortgage payments over the last five years at the biggest cities in the country. A "big city" in this study is considered a city that has a population greater than 200,000. The study then took the total five-year cost as a proportion of media household income in each city to determine affordability.
Detroit's median income is by far the lowest among the top 10 -- $26,249. It's average closing cost is $2,380, while the annual property tax is $1,491 and the annual homeowner's insurance is a staggering $311, also the lowest of the top 10. Detroit's average annual mortgage payment is $1,891 -- also the lowest of the top 10.
Nationwide numbers are much different compared to Detroit's. The average closing cost is $3,339, nearly $1,000 more than Detroit's. The nationwide annual property tax is $2,834, while the annual homeowner's insurance is $1,331, the average annual mortgage payment is $10,686 and the median income is $55,322.