10 cheapest U.S. cities for buying a home
(MoneyWatch) Looking for an affordable house? Head to Detroit, which has the cheapest homes in America. The city's median home price is less than $35,000, and in certain neighborhoods you can buy homes for even less.
But the Michigan city, whose economy has been declining for decades amid the loss of manufacturing jobs and, more recently, the subprime collapse, isn't alone There are plenty of other U.S. cities and towns, largely located along the Rust Belt, where home prices has hit extreme lows. Most have hundreds of houses priced below $40,000, according to real estate research firm Zillow.
Not all of these cities necessarily offer the lowest median prices across the country, but they do have some of the cheapest neighborhoods with the most affordable homes. Although Tampa, Fla., has homes that sell for millions of dollars, for example, the foreclosure crisis in the state also means there are properties selling for just a few thousand dollars.
If you're willing to invest some sweat equity, homes in these 10 cities are some of the most affordable in the country.
10 cheapest U.S. cities for buying a home
Detroit
It's no surprise that the lowest median home prices in the nation can be found in certain parts of Detroit. The city is basically in bankruptcy after losing more than half of its population over the past 50 years. When the housing crisis arrived, Detroit was already in trouble, and home prices tumbled further. Even today, with the economy starting to recover in earnest, the city's median home price is just $32,600. While purchasing a home in Detroit takes a lot of research and a little luck, prices are on the upswing.
10 cheapest U.S. cities for buying a home
Buffalo, N.Y.
Buffalo has a number of neighborhoods where homes can be purchased for less than $40,000, particularly along the city's east side, as well as northern neighborhoods near the Niagara River. Home prices in the city have recovered unevenly, with some area prices climbing while others are still dropping. In the city itself, the median home price is about $51,000.
10 cheapest U.S. cities for buying a home
Toledo, Ohio
The average home price in Toledo is a modest $51,200, but in certain neighborhoods you can find move-in ready homes for less than $35,000. While the city struggled in the 1980s, Toledo has revitalized its downtown with a minor league baseball stadium and hockey arena and upgraded its riverfront area with walking trails, landscaping and new restaurants.
10 cheapest U.S. cities for buying a home
Cleveland
Home prices in Cleveland have dropped at least 25 percent since the housing market started crashing in 2006. Unlike other areas across the country, the city's home prices haven't started turning around yet, with a median price of just under $50,000. That means it's still a buyer's market. You can find homes in several neighborhoods that can be purchased for less than $40,000, including Forest Hills, which was part of the former 700-acre estate of oil baron John D. Rockefeller.
10 cheapest U.S. cities for buying a home
Tampa, Fla.
If you want to buy in Tampa, now is the time. Some neighborhoods remain still super-cheap, with homes going for much less than the $120,000 median, but prices are rapidly increasing. Home prices in Tampa, Clearwater and Saint Petersburg have risen more than 10 percent over the last year. But there are still plenty of neighborhoods, particularly in the Saint Petersburg area, where homes sell for less than $40,000.
10 cheapest U.S. cities for buying a home
Augusta, Ga.
Best known for hosting the Masters golf tournament each spring, Augusta is located along the banks of the Savannah River on the border of Georgia and South Carolina. Prices vary widely across the metropolitan area, with some suburbs averaging almost $200,000, while other neighborhoods hitting as low as $38,500. The city has a median price of $74,600.
10 cheapest U.S. cities for buying a home
Philadelphia
While the median price for a home in Philly is around $104,000, homes in certain neighborhoods can be had for much less. Philadelphia's higher median home prices are driven up by more upscale neighborhoods, where home prices hit half a million dollars. But there are plenty of neighborhoods with low median prices, reaching as low as $38,000.
10 cheapest U.S. cities for buying a home
Youngstown, Ohio
In the city of Youngstown, the median home price is less than $40,000, so there are plenty of neighborhoods where deals can be found. Having moved on from its days in the 1950s and 60s as "Murdertown, USA," when gang activity surged, the city has been revitalizing itself for the past decade with construction of upscale retail and residential developments, as well as fostering the growth of new technology companies through the Youngstown Business Incubator.
10 cheapest U.S. cities for buying a home
Akron, Ohio
Home prices are low across Ohio, and Akron is no exception. Homes in the city hit a median price of $55,600, and several neighborhoods fall well below that line. The city formerly known for rubber is now known for its plastic industry, even being dubbed the "Polymer Valley."
10 cheapest U.S. cities for buying a home
Mobile, Ala.
The median home price in Mobile is $89,000, but there are still neighborhoods where homes can be purchased for less than $50,000. Home prices declined rapidly since the market crashed, but have since started to recover over the past year. While it's one of the least expensive cities in the country to buy real estate, the city's location near the Gulf of Mexico continues to boost its economy.