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The 25 best cities for buyers on a budget: Zillow

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12 months ago

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Pittsburgh, Jackson, Syracuse and Toledo all rank among the most affordable cities.  (iStock)

The housing market has seen better days. Although housing affordability is trending upward, according to the National Association of Realtors, mortgage rates and homeowners insurance are still up across the country, adding to the cost of homeownership.

The current state of the market is leaving some buyers searching for affordable areas. Zillow recently released an analysis of 25 metro areas which showed the cost of housing is less than 30% of an average household budget.

It’s often recommended that homebuyers pay a third of their income or less towards housing costs. This is considered affordable and leaves money for other necessities and savings.

Here are the 25 areas Zillow’s study deems most affordable.

If you think you’re ready to shop around for a home loan, consider using Credible to help you easily compare interest rates from multiple lenders at once.

HOMEOWNERS’ MONTHLY MORTGAGE PAYMENTS DROPPED TO LOWEST RATE IN YEARS

1. Pittsburgh, Pennsylvania

Pennsylvania’s second-largest city is home to just over 300,000 people and has some of the lowest housing costs in the country. The average home value is $202,454, according to the Zillow study. This creates a typical mortgage payment of about $1,053.

2. Jackson, Mississippi

For warm weather and a city steeped in history, Jackson, Mississippi is the largest city in the state with housing costs averaging under $200,000. The Zillow report found the typical home value is $185,338, equaling a mortgage payment of just $964, on average.

3. Syracuse, New York

For those who want to live in New York but don’t want to pay high NYC prices, Syracuse is a major city with plenty of opportunities. Homebuyers pay $212,404, on average for their homes, which means a monthly mortgage payment of about $1,105.

4. Toledo, Ohio

Toledo sits on the tip of Lake Erie and is home to the Toledo Museum of Art, making it a good selling point for artsy buyers. Plus, the average monthly mortgage payment is just $920. The typical home price is $176,787, on average.

5. Wichita, Kansas

For a small, but affordable city, Wichita stands out. It’s the largest city in Kansas, but homebuyers pay $201,780 for the average home. This equates to $1,050 per month in a monthly mortgage payment.

6. Akron, Ohio

Another city in Ohio makes Zillow’s top ten affordable places to live. Akron is a small city with a population of just over 188,000. The average buyer pays $207,190 for a home and $1,078 in a monthly mortgage payment.

7. St. Louis, Missouri

St. Louis offers the famous Gateway Arch, a world-class zoo and the Mississippi River. While it’s not the most affordable city on this list, most homebuyers can still get a house for under $300,000. Zillow reports the average home value is $242,214, which means a monthly payment of about $1,260.

8. Augusta, Georgia

For nice weather and an up-and-coming food scene, Augusta, Georgia has more affordable housing options than Atlanta. The typical home price sits at $224,839, on average. Buyers typically pay $1,170 for their monthly mortgage payment.

9. Rochester, New York

Sitting on Lake Ontario, Rochester is one of the more affordable cities in New York. Homes average $233,753 and monthly mortgage payments average $1,216.

10. Detroit, Michigan

Detroit has been trying to make a comeback for years after its population decreased. It has a vibrant downtown scene and a lot of inventory. Buyers pay $240,536 for an average home, which equates to a mortgage payment of about $1,251.

11. Birmingham, Alabama

For those looking for constant sun, tons of parks and some good Southern food, Birmingham has all of these, paired with relatively low mortgage payments. Home values average $247,702, with mortgage payments averaging $1,289, according to Zillow.

If you’re looking to purchase a home in today’s market, you can explore your mortgage options by visiting Credible to compare rates and lenders and get a mortgage preapproval letter in minutes.

THIS IS THE #1 CITY FOR FIRST-TIME HOMEBUYERS, AND OTHER HOT US HOUSING MARKETS

12. Baton Rouge, Louisiana

The capital of Louisiana, Baton Rouge, is home to Louisiana State and a strong job market, as well as low home values, particularly compared to the much more expensive New Orleans. The average home costs $228,418, with a monthly mortgage payment of $1,188.

13. Indianapolis, Indiana

Indianapolis has a little bit of everything. Whether buyers are sports fans looking to attend Pacers games or the Indy 500 or want a variety of job opportunities, they’ll find what they’re looking for. Many homebuyers can get by without paying over $1,500 for their mortgage. The average home price is just over $270,000.

14. Little Rock, Arkansas

Little Rock is the capital city of Arkansas, set on the banks of the Arkansas River. Prospective homebuyers will pay $212,713, on average, for a typical home. This is equal to $1,107 for a monthly payment.

15. Des Moines, Iowa

Des Moines has a vibrant art and live music scene thanks to its bustling downtown and the Des Moines Art Center. Since it’s the capital of Iowa, home prices are slightly higher than some alternative cities, but the typical home value is still $270,827, with an average monthly payment of about $1,400.

16. Columbia, South Carolina

Columbia is the capital of South Carolina with a population of 139,698. It’s home to the Riverbanks Zoo and Garden, which is a botanical garden and zoo hybrid. Homebuyers should expect to pay about $243,161, on average. This means a mortgage payment of $1,265.

17. Cleveland, Ohio

Cleveland is the perfect city for sports enthusiasts, artists, entrepreneurs and anyone looking for a thriving downtown. Plus, housing is nice and affordable, with homebuyers paying about $215,913 for a home and $1,123 for a monthly mortgage payment.

18. Buffalo, New York

Buffalo, New York is a popular vacation destination thanks to its location near Niagara Falls. It also boasts an affordable housing market, with the average monthly mortgage payment being $1,274. The average home price is $244,825.

19. Grand Rapids, Michigan

Grand Rapids is the only city on Zillow’s list where home prices average slightly over $300,000. Even so, this is less than the national average of $417,700. The average homebuyer will pay $1,610 in a monthly mortgage payment and $309,531 for a home.

20. Memphis, Tennessee

Memphis has always been a cool city with a huge blues, soul and rock music scene. Big names like Elvis, Johnny Cash and B.B. King all recorded albums at the well-known Sun Studio. It’s also home to many affordable homes. The average buyer will pay $234,635 for a home, securing a mortgage of $1,221, on average.

21. Oklahoma City, Oklahoma

The capital city of Oklahoma has a lot to do, from musical festivals to country-themed bars. It also has an affordable housing market, with the average home going for $229,529. This equals an average mortgage payment of $1,194.

22. Louisville, Kentucky

Home to the Kentucky Derby, homebuyers can get a mortgage for less than $1,300 in Louisville. The average price for a home sits at $247,856.

23. Harrisburg, Pennsylvania

Harrisburg offers a small city vibe with just over 50,000 people. Even with a small housing market, the city boasts affordable options. Home prices average $274,217 and mortgage payments average $1,427.

24. Cincinnati, Ohio

There’s always something to do in Cincinnati. With the famous Cincinnati Zoo and multiple museums, it’s a good family city. Homebuyers pay an average of $271,766 for a home and secure a mortgage payment of $1,414, on average.

25. Tulsa, Oklahoma

Tulsa is an affordable city overall. Mortgage payments typically come in under $1,200 per month and the average homebuyer will pay $227,703, on average, for a new home.

You can explore your mortgage options in minutes by visiting Credible to compare rates and lenders.

HOMEBUYERS CONSIDERING PURCHASING TINY HOMES AND FIXER-UPPERS TO COMBAT HIGH HOME PRICES

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Finance

Buffett denies social media rumors after Trump shares wild claim that investor backs president crashing market

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3 hours ago

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April 4, 2025

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Berkshire Hathaway responds to 'false reports' on social media

Warren Buffett went on the record Friday to deny social media posts after President Donald Trump shared on Truth Social a fan video that claimed the president is tanking the stock market on purpose with the endorsement of the legendary investor.

Trump on Friday shared an outlandish social media video that defends his recent policy decisions by arguing he is deliberately taking down the market as a strategic play to force lower interest and mortgage rates.

“Trump is crashing the stock market by 20% this month, but he’s doing it on purpose,” alleged the video, which Trump posted on his Truth Social account.

The video’s narrator then falsely states, “And this is why Warren Buffett just said, ‘Trump is making the best economic moves he’s seen in over 50 years.'”

The president shared a link to an X post from the account @AmericaPapaBear, a self-described “Trumper to the end.” The X post itself appears to be a repost of a weeks-old TikTok video from user @wnnsa11. The video has been shared more than 2,000 times on Truth Social and nearly 10,000 times on X.

Buffett, 94, didn’t single out any specific posts, but his conglomerate Berkshire Hathaway outright rejected all comments claimed to be made by him.

“There are reports currently circulating on social media (including Twitter, Facebook and Tik Tok) regarding comments allegedly made by Warren E. Buffett. All such reports are false,” the company said in a statement Friday.

CNBC’s Becky Quick spoke to Buffett Friday about this statement and he said he wanted to knock down misinformation in an age where false rumors can be blasted around instantaneously. Buffett told Quick that he won’t make any commentary related to the markets, the economy or tariffs between now and Berkshire’s annual meeting on May 3.

‘A tax on goods’

While Buffett hasn’t spoken about this week’s imposition of sweeping tariffs from the Trump administration, his view on such things has pretty much always been negative. Just in March, the Berkshire CEO and chairman called tariffs “an act of war, to some degree.”

“Over time, they are a tax on goods. I mean, the tooth fairy doesn’t pay ’em!” Buffett said in the news interview with a laugh. “And then what? You always have to ask that question in economics. You always say, ‘And then what?'”

During Trump’s first term, Buffett opined at length in 2018 and 2019 about the trade conflicts that erupted, warning that the Republican’s aggressive moves could cause negative consequences globally.

“If we actually have a trade war, it will be bad for the whole world … everything intersects in the world,” Buffett said in a CNBC interview in 2019. “A world that adjusts to something very close to free trade … more people will live better than in a world with significant tariffs and shifting tariffs over time.”

Buffett has been in a defensive mode over the past year as he rapidly dumped stocks and raised a record amount of cash exceeding $300 billion. His conglomerate has a big U.S. focus and has large businesses in insurance, railroads, manufacturing, energy and retail.

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Stocks making the biggest moves midday: PLTR, CAT, AAPL JPM

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3 hours ago

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April 4, 2025

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Powell sees tariffs raising inflation and says Fed will wait before further rate moves

Published

6 hours ago

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April 4, 2025

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US Federal Reserve Chair Jerome Powell holds a press conference after the Monetary Policy Committee meeting, at the Federal Reserve in Washington, DC on March 19, 2025. 

Roberto Schmidt | Afp | Getty Images

Federal Reserve Chair Jerome Powell said Friday that he expects President Donald Trump’s tariffs to raise inflation and lower growth, and indicated that the central bank won’t move on interest rates until it gets a clearer picture on the ultimate impacts.

In a speech delivered before business journalists in Arlington, Va., Powell said the Fed faces a “highly uncertain outlook” because of the new reciprocal levies the president announced Wednesday.

Though he said the economy currently looks strong, he stressed the threat that tariffs pose and indicated that the Fed will be focused on keeping inflation in check.

“Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem,” Powell said in prepared remarks. “We are well positioned to wait for greater clarity before considering any adjustments to our policy stance. It is too soon to say what will be the appropriate path for monetary policy.”

The remarks came shortly after Trump called on Powell to “stop playing politics” and cut interest rates because inflation is down.

There’s been a torrent of selling on Wall Street following the Trump announcement of 10% across-the-board tariffs, along with a menu of reciprocal charges that are much higher for many key trading partners.

Powell noted that the announced tariffs were “significantly larger than expected.”

“The same is likely to be true of the economic effects, which will include higher inflation and slower growth,” he said. “The size and duration of these effects remain uncertain.”

Focused on inflation

While Powell was circumspect about how the Fed will react to the changes, markets are pricing in an aggressive set of interest rate cuts starting in June, with a rising likelihood that the central bank will slice at least a full percentage point off its key borrowing rate by the end of the year, according to CME Group data.

However, the Fed is charged with keeping inflation anchored with full employment.

Powell stressed that meeting the inflation side of its mandate will require keeping inflation expectations in check, something that might not be easy to do with Trump lobbing tariffs at U.S. trading partners, some of whom already have announced retaliatory measures.

A greater focus on inflation also would be likely to deter the Fed from easing policy until it assesses what longer-term impact tariffs will have on prices. Typically, policymakers view tariffs as just a temporary rise in prices and not a fundamental inflation driver, but the broad nature of Trump’s move could change that perspective.

“While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent,” Powell said. “Avoiding that outcome would depend on keeping longer-term inflation expectations well anchored, on the size of the effects, and on how long it takes for them to pass through fully to prices.”

Core inflation ran at a 2.8% annual rate in February, part of a general moderating pattern that is nonetheless still well above the Fed’s 2% target.

In spite of the elevated anxiety over tariffs, Powell said the economy for now “is still in a good place,” with a solid labor market. However, he mentioned recent consumer surveys showing rising concerns about inflation and dimming expectations for future growth, pointing out that longer-term inflation expectations are still in line with the Fed’s objectives.

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