Invest In These Affordable Cities

Nowadays it seems like there is no place to find a decent deal since the housing prices have gone up so much in recent years.  Given that the median sales price of a single-family house is now around $347,000 it is becoming increasing difficult to find a deal.  However, if you look carefully, you will find many cities with median home prices under $200,000.  There are always reasons why these areas have not kept up with the housing increases.  The main two reasons are demand for housing and the average pay for workers in those areas is relatively low.  But many of these areas are picking up and there is always a need for decent affordable housing.  Many of these properties can cash flow well if rented or sold on owner finance.  So here are just a few ideas of where to look.  I am sure they are many more.  

Terre Haute, Indiana 

This city is near the Wabash River and just east of the Illinois border.  Terre Haute experienced an economic decline as industries moved to cheaper locations.  Things of interest there are the Swope Art Museum and Indiana Theatre built in 1922 where they had silent movies.  

Median Home Price:   $128,000

Increase in past year:  14%

Youngstown, Ohio

The city is located a few miles west of Pennsylvania border.  Recent efforts have been made to revitalize Youngstown including a pedestrian friendly plaza downtown and opening a business Incubator which focuses on digital business and women and minority owned business and is in an old department store.

Median Home Price:   $115,000

Increase in past year:  15%

Saginaw, Michigan

This area used to be a fur trading post way back in the day and close to Lake Huron.  Later became an area for auto manufacturing and lumber production.  By the late 20^th century most of the manufacturing had left the city.  Still a great place to live.

Median Home Price:   $109,000

Increase in past year:  15%

Macon, Georgia

Once you get past the strip malls and into the interior of Macon you will see horse farms, pecan groves and historical business district that was recently revitalized.   

Median Home Price:   $141,000

Increase in past year:  13%

Peoria, IL

It is in central IL and has a riverfront district with outdoor venues, museums, and restaurants.  The other attraction is the Wildlife Prairie Park with bison, wolves and bobcats which once lived in the area.  

Median Home Price:   $112,000

Increase in past year:  14.6%

Davenport, Iowa

It is located on the banks of the Mississippi River.  Has done some revitalizing of the downtown area as well.  It was marked as most livable city in 2007.

Median Home Price:   $162,000

Increase in past year:  8.3%

Charleston, West Virginia

It is the capital and near the Allegheny Mountains.  It is a pretty area and near the Elk and Kanawha rivers.  The city is surrounded by forest and hiking trails.

Median Home Price:   $151,000

Increase in past year:  14.7%

Lake Erie, Pennsylvania

This is the access for PA to the great lakes and the center of the “rust belt”.   It declined after much manufacturing left the area.  However, there is much to enjoy such as the state parks the peninsula that goes out into Lake Erie which offers boating, fishing, swimming, etc.  

Median Home Price:   $159,000

Increase in past year:  10.3%