DETROIT – Detroit has been deemed as one of the top four U.S. cities for affordable starter homes.
Point2Homes.com analyzed the 50 largest cities in the country and determined whether or not a renter could live comfortably and afford a median starter home. Detroit was named one of the top four cities with the most affordable starter homes, alongside Tulsa, Memphis and Oklahoma City.
According to Point2, the average starter home down payment in Detroit is $9,626. The average income of Detroiters in the city is roughly $25,004, and the income required to purchase a starter home is about $19,103.
Below is a graph of the top four cities where renters could afford a starter home, according to Point2.
What is a starter home?
Rocket Mortgage defines a starter home as a smaller home or condominium that is bought as a person’s first home. The property will typically have three or fewer bedrooms. The company reports that the current median age for first-time homeowners is 34 years old.
The four top U.S. cities stood out to Point2 due to starter homes costing less than $100,000 in their housing markets. According to Business Insider, the median starter home value is $58,000 in the U.S. Point2 reported that 13 out of 50 of the largest cities in the United States have renters earning less than half the income they would need to help transition them into becoming homeowners.
Below is a chart of what the median starter home price is as of September 2022, the average down payment needed, loan amount, what a yearly payment would look like and the yearly income required to buy a starter home in one of the top four U.S. cities. Information is all courtesy of Point2.
|City||State||Median Starter Home Price September||Starter Home Down Payment||Loan Amount||Yearly Payment (7%)||Yearly Income Required (7%)|
In a recent article by Forbes, Detroit was ranked as the No.1 most affordable city to buy a home. Forbes said the Motor City has been on the upswing over the past couple of years amid efforts to revitalize the region. Alongside low housing rates in Detroit, the average monthly utilities cost $290 and the annual food cost is about $8,277, Forbes said.
Map: Here’s the average home value in each Metro Detroit city
Below is a map from Zillow’s Home Value Index giving you the average home value for each Metro Detroit city.
(Tip: Hover over a city to see the average home value in that area, or switch over to the “data table” tab to see the numbers listed by city, zip code and the average value amount.)