Most and Least Affordable Places to Buy a Home
priceonomics.com
priceonomics.com
Several of the "most affordable" cities are in Illinois, yet here in Illinois we are losing population rapidly. The reason is that the tax burden is the highest in the nation. Property taxes in particular are out of control. That's why houses are cheap: buyers have to take into account the fact that they have to pay a significant percentage of the value of their home to the government every year.
Across the border in Indiana, there is a 1% property tax cap. In Illinois, property taxes average 2.5%, and there are some communities where it runs as high as 10% (mostly south-side Chicago economically depressed townships).
My advice: don't come here because you think housing is cheap. It ain't.
eta: We are also leaving IL as soon as our new house is built in NC.
We really need more integratable open data sources so that people can do these kinds of mash-ups easily themselves. Maybe I want to sort regions weighted by home prices, distance to a ski resort, least light pollution for stargazing, and cheapest gas prices. All these data are out there, but you need to be a GIS wizard to mash them up.
1: https://wallethub.com/edu/states-with-highest-lowest-tax-bur...
I would think absolute home prices (plus cost of living, minus any local tax incentives for moving to the state, etc.) might be a more interesting metric here.
It is a tech company, so they are comfortable with this, but a decidedly non-tech job.
Absolutely spot on re hands on work, e.g., construction, plumbing, electrical, other trades.
From that perspective, I like this take on it - if I'm going to be able to easily my afford my home, I'd like it if the same was true for my neighbors, even though most of them have more local, less tech-oriented careers.
And there are cities where most everyone you’ll run into is employed by the local community, but doesn’t live there: agricultural towns where most people there at any given moment are temporary workers bussed in; “global” cities like Dubai which have roughly no local population, where most of the population at any time are there on temporary business visas; mining/oil-and-gas boom towns (though this last one tends to change, with the workers often settling into the area.)
It’d be interesting to see cities measured on what proportion of the people who you’d have as neighbours, are actually “attached” to the local economy. How much the city exists as an autonomous, self-sustaining entity; vs. being some state government or corporation’s loss leader for some project.
The most affordable are the places with the worst weather, pollution, etc.
Doesn’t this just translate into ‘valuable things are more expensive’?
Edit: drought, wildfires, income inequality on a huge level, horrible public transport, but there’s beaches, mountains and desert all within a days drive I guess?
Ended up buying a house for less than half what it would have cost in San Diego with a nice amount of land and about 20 minutes from downtown Raleigh on an average day. We lost the beaches and desert but still have mountains and lots of green areas nearby. My only complaint is I need to make California burritos at home as that’s not really a thing here (go figure) but we love it so far otherwise.
If you are arguing that California is objectively undesirable compared to other places on the list, then how do you account for the demand?
California is absolutely desirable and I never said it wasn’t. But your reasons for it being the top spots don’t jive with what people actually feel or think. A lot of houses are being sold sight unseen for cash, sometimes up to 25+% over offer, just to be rented out for a profit by someone from out of state the demand is propped up by this as well as normal migration in.
> But your reasons for it being the top spots don’t jive with what people actually feel or think.
Here you claim that people do not think the places with high housing prices in California have good weather, amenities, natural beauty and jobs.
> A lot of houses are being sold sight unseen for cash, sometimes up to 25+% over offer, just to be rented out for a profit by someone from out of state the demand is propped up by this as well as normal migration in.
Here you claim that housing prices in California are driven by out of state speculators buying housing as rental properties.
Is there any source for this claim?
It seems unlikely, given that rents are not keeping pace with housing prices.
Also if California is not desirable in the ways I said it is, why would people want to rent from these speculators?
Ultimately though, doesn’t the market just work this out? The areas where the most people want to live are the most expensive and visa versa. The trick is figuring out what matters to you and what doesn’t and then finding the cheapest place that offers what you want. With the obvious caveat that for many many people, being close to friends and family is a major factor in what they want.
It's exactly the kind of place I'd expect to start capturing some attention: in some ways the pandemic may be the best thing that ever happened to that region, because it forces a kind of reckoning around "what things are really _valuable_ in a remote- first world?". CA/SF are great.. but for a lot of people having a great quality of life _and_ having the financial security to pass more on to others or pay for things other than a house that costs 15x as much is a more fulfilling choice.
Is it better than it was? Comparably, it certainly is. Objectively? I think it's gotten better, too. It's not SF and it never will be, but you get a lot of time and space for your money there, comparitively.
I'm keeping my eye on the housing market around the area a little further out into the country.
Housing prices are a big topic of conversation in other places as well: e.g., I am in Canada, in the GTA/Toronto. Things be crazy here—and most of Southern Ontario, and a whole bunch of other places lately (Maritimes going up AFAICT).
(And if you have kids, you probably want at least halfway-decent public schools, which many of these cities don't have.)
The one and only path to reduced housing costs runs through reduced homeownership. As long as a large majority of likely voters own the problem will only get worse.
In an ideal world, this wouldn’t be the case.
(I was looking myself to move to a larger home in the Bay Area during that period and came up empty.)
In fact, many of those in the Bay Area snatched up 2nd, 3rd, 4th properties as investments from places like Las Vegas where they were practically giving away new homes.
When prices returned to normal (that is, everyone who had to foreclose had done so), then the expensive homes started coming back on the market. Basically, the wealthy could afford to sit out the market lull. There weren't really any excellent deals to be had in the Bay Area after the housing crash. There were still plenty of people with deep pockets showing up at foreclosure auctions and outbidding one another.
But back to the point — perhaps there is simply too much money, too much wealth in parts of California for the prices to ever really fall.
https://www.prnewswire.com/news-releases/california-median-h...
I don't see Des Moines, IA on the list but it pretty routinely ranks highly as a good balance between affordable and desirable (it's safe, there's a decently vibrant tech/startup community, lots of big insurance/financial services/agtech companies that provide a stable foundation of high-paying jobs, and it's big enough that there are things to do -- downside is the winter weather) https://www.dsmpartnership.com/news-media/rankings
But I'm sure that I'm only aware of DSM because of my family ties. Would love to hear what other undiscovered gems there are. Eg I've heard good things about Chattanooga.
Moral of the story don't be a one trick town.
These aren't undiscovered gems, they are nice places to live and have always been that way. They are places that used to be called flyover, backwoods, etc. They are nice because they were ignored. They are liked because they don't have the problems of the places people are flocking from. It seems that the coasts have found out the interior isn't all outhouses and dirt roads. It isn't that it is a discovery, it is knowledge gained of an existing fact. /rant (but not really apparently)
Arkansas is a great example. It is a trope to make fun of it and look down on the state when, mostly, it is absolutely gorgeous. There's some flood lands on the east but it is called the Natural state for a reason. Northern Mississippi is rolling hills and Oxford is beautiful. Many of the gems you're looking to learn about are likely too small to make this list, or are a combination of smaller towns making a slightly larger area. Then you have these historically depressed, shunned states being piled on because they are now seen as gems, it is a power imbalance that feels a little intentional.
You mentioned Chattanooga so you'd probably be interested in
Savannah (GA or TN) Oxford MS (4 of the biggest, best fishing lakes right there) Anywhere in Maury / Marshall County TN Anywhere in middle TN, especially Cooke/Crossville (TN tech is there) except for the places already "discovered" Knoxville / Maryville Johnson City / TriCities TN / Bristol VA Asheville / Boone, NC Huntsville AL (they have rockets!) Surrounding LittleRock AR (or for small town Heber Springs, Mountain View)
I feel old and fuddy-duddy now, get off my lawn and all of that stuff. I really like new people and new influences, I'm glad others appreciate what I have for so long, it just hurts a bit to have the continual view of condescension that comes from things like "found, discovered, etc" it implies that it needed approval in the first place when, in fact, it has been fine all along.
This was way too-ranty and possibly exclusionary, I absolutely love Tennessee and most of the South in general (looking at you Kentucky), probably to a fault. I want my kids to grow up and have access to all that I did. Land is being bought in droves, it is leaving, it is noticeable. Access is being restricted. There's a lot of great conservation work and, admittedly a lot of newcomers who help more than existing. It just feels like a bit of a race at times.
As someone born, raised, and lived almost all my life in the vicinity of NYC—-this mostly isn’t us.
I’ll admit there’s some jokes, but it’s good natured. Somewhat like how most Americans think of Canadians. Maybe not close family, but cousins.
Rather, the true bitterness and nastiness comes not from native coastals but people that are from those places in the middle and left. That’s not to say all transplants are haters but almost all the hardcore haters are transplants.
The main explanation is building restrictions. There’s both a greenbelt and height limits.
It’s also an extraordinarily beautiful place.
Boulder has (or maybe more correctly, had) that same liberal college town vibe that places like Ithaca and Burlington are known for. It is nestled directly against the foothills of the Rockies which provides great recreation options with hiking trails literally starting in town (Denver is ten or so miles east of the foothills). Boulder is home to a pretty booming tech scene, so there are some very high paying jobs to be had, too.
As I understand it, the zoning regulations designed to keep the "small town" feel prevent much development. These zoning ordinances paired with Boulder being a highly desirable place to live mean that demand far outpaces supply, and home prices shoot up.
Nope.
At least I didn't notice that when I lived there (2012 - 2017).
Income tax is higher than most states but still less than California.
Houstonians are in a boomtown getting a temporary advantage that could be offset in the long run, whether by industrial decline, climate change and severe weather, traffic, or some other factor.
Boston does have a Superfund industrial past to reckon with and a lot of outlying MA cities like Worcester, Lowell, Fall River are definitely not balancing out on the implicit/explicit scale by comparison to Boston.
What is the "core" of Houston that will retain its benefit when the tides turn?
Anything you can want, from any industry, most likely exists within a 1 hour drive at a world class level. This is true of any big city, but I’m not sure that oil going away will just cause Houston to fold up and close shop. Houston has been through booms and busts before and I’d say they’re more ready to handle moving away from Oil now more than ever, and getting more ready every year. It’s a scrappy town that takes punches, puts in work, and helps eachother get back on their feet (See Hurricane Harvey).
If I had to pick between Houston and Chicago, I’d pick Houston any day. Much more livable city, a way lower tax burden, and it still feels like a place where anyone can make it - and that may be driving the diversity and immigration (it’s also a sanctuary city).
Contrast that to a midwestern city: the winters will probably give you seasonal affective disorder, your income ceiling is lower, you have to drive further or fly for similar access to awe inspiring nature.
IMO it’s a wash. Which taken a step further would show cost of living adjustments as generally bullshit but something businesses will try and do because they’re incentivized to.
For example, several metros in Texas growing 20% in the past decade vs Chicago decreasing in population.
The folks that took up residence in DFW this decade got to take advantage of a high explicit benefit and a stable implicit benefit. Maybe in another 10 years that turns into NIMBYism, intolerable traffic, decline of industries that previously supplied a lot of jobs... reducing the implicit benefit. But DFW won't be able to change its fortunes quickly enough to recover that great implicit/explicit balance in such a climate, and then it'll be the new California.
One way to look at it is an an arbitrage opportunity, where you as an individual or family can relocate much more quickly than a metro area can adjust to balance its implicit and explicit costs.
I'd love to see a list like this of the best place to live for you right now, based on the things you value implicitly and explicitly.
Santa Monica is actually quite a bit cheaper, but the methodology compares ratio of local incomes to housing prices. Santa Monica is heavily rent controlled and over 60% of people living there rent and many have rents that are far far below the market. This skews affordability ratio the article is trying to use.
Compared to Palo Alto, Santa Monica is a bargain. According to Zillow, Palo Alto median home price is $3,226,001[1] vs $1,810,148[2] in Santa Monica.
[1]https://www.zillow.com/palo-alto-ca/home-values/ [2] https://www.zillow.com/santa-monica-ca/home-values/
[1] https://www.nationalreview.com/magazine/2021/04/19/the-great...
I know flint and Detroit from hilarious news segments and Gary from reddit posts. Are the others just as bad?
Oh boy
Affordability is one thing, viability is another.
Thankfully it’s not mine.
Thank all the baby boomers nimbys and the greedy tech bros for ruining california.
Low expectations are an important coping mechanism.
For every complaint you have, I’ve had 1,000 magical experiences you could never appreciate.
Please, i want everyone to be happy, and for most techies, you would be happier in Texas, New York or Florida.