A recent survey, a snapshot survey of U.S. four-bedroom, two-bathroom home listings, found a $1.7 million difference between America’s most expensive and most affordable housing markets. Newport Beach, Calif., led the list of most expensive real estate markets in America, with an average home listing price of approximately $1.83 million for property listings meeting the subject home criteria. By contrast, America’s most affordable housing market was Detroit, Mich., with an average home listing price of approximately $68,000.
The report provides the average home listing price of more than 18,000 four-bedroom, two-bathroom properties that were listed between February and August 2010 from nearly 300 select U.S. markets. The U.S. average for the surveyed listings was approximately $353,000. Markets included in this report were required to have at least six properties fitting the above criteria within the relevant timeframe.
Detroit, the most affordable market, is the only major U.S. city that looks South to Canada. Residents of the Motor City take great pride in Red Wings hockey and appreciate the city’s hard-working industrial and automotive history.
In addition to Detroit, America’s most affordable real estate markets are as varied in culture and trivia as they are in listing price ranges:
* Grayling, Mich., is home to many top cross-country skiing destinations.
* Sioux City, Iowa, has been recognized as a top U.S. economic community for areas between 50,000 and 200,000 people.
* Cleveland, Ohio, is home to the Rock and Roll Hall of Fame.
* Muncie, Ind., has gained notoriety for its successful prep sports programs.
* Norfolk, Neb., is home to many healthcare and manufacturing companies.
* Kansas City, Mo., is just behind Rome, Italy, for the largest number of fountains in a city (more than 200).
* Canton, Ohio, is home to the Professional Football Hall of Fame.
* Port Huron, Mich., features the School of Strings, which presents over 50 concerts a year with its Fiddle Club, Faculty and Student Ensembles.
* Topeka, Kan., was once temporarily renamed “Topikachu,” in honor of the Pokémon franchise.
* Homeownership Affordability: In total, there are 85 U.S. markets in the survey with average reported listing prices less than $200,000. There are 183 markets (out of a total of 296 surveyed) that are less than $300,000.
* Great Midwest: Michigan has three markets on the most affordable housing list (Detroit, Grayling and Port Huron), and all 10 of the most affordable markets are in the Midwest.
* Low Monthly Payments: Put in perspective, a $200,000 30-year-fixed mortgage at a 4.5% rate could cost a buyer a relatively low monthly mortgage payment of just above $1,000. The average $68,000 four-bedroom, two-bathroom home in Detroit could average less than $350 a month.
* Pacific Paradise: Out of the 10 most expensive real estate markets, six are from California: Newport Beach, Palo Alto, San Francisco, La Jolla, Pasadena and Santa Barbara.
* Above $750,000: The survey included 25 housing markets where the average listing price for the subject home was more than $750