7 Best Small Cities for New Grads To Buy a Home Under $250K
A home for less than $250,000 in a livable small city? There are places where recent college graduates can pull it off, even in today’s difficult market.
A new study delivers a list of not only sub-$250,000 options, but the best sub-$250,000 options. However, not all of these places are equal in factors like housing affordability, career opportunities and quality of life.
To compile this list, real estate site Redfin and job info site Glassdoor evaluated cities in multiple categories. For housing affordability, the study factored in starter home inventory, ownership costs, ownership cost trends and rent-to-income ratios. The career opportunities category looked at average early-career incomes, economic diversity, job satisfaction, career opportunity satisfaction, job availability and post-pandemic job availability trends. For quality of life, Redfin and Glassdoor weighed work-life balance ratings, along with median transit and walkability scores.
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The analysis produced a top 10 list, with seven of the entries coming in below $250,000 for the average price of a starter home. The top small cities blend housing affordability, job opportunities, livability and homes. You’ll find four of them in the Midwest and the other three in the South, ranked by how favorable they are to new grads:
1. Springfield, Illinois
Average annual early career income: $59,925
Price of a typical starter home: $128,000
Years to save for down payment: 2 years, 3 months
Monthly mortgage payment as percent of income: 16.8%
Why it rose to the top of Redfin’s rankings: Affordable starter homes, strong starting salaries, work-life balance
2. Panama City, Florida
Average annual early career income: $61,160
Price of a typical starter home: $230,000
Years to save for down payment: 4 years, 8 months
Monthly mortgage payment as percent of income: 29.6%
Why it rose to the top of Redfin’s rankings: Career growth potential, work-life balance, pay outpaces rent
3. Macon, Georgia
Average annual early career income: $55,037
Price of a typical starter home: $139,000
Years to save for down payment: 3 years, 1 month
Monthly mortgage payment as percent of income: 19.9%
Why it rose to the top of Redfin’s rankings: Affordable starter homes, job availability, job variety
4. Champaign, Illinois
Average annual early career income: $57,356
Price of a typical starter home: $157,000
Years to save for down payment: 3 years
Monthly mortgage payment as percent of income: 21.6%
Why it rose to the top of Redfin’s rankings: Affordable starter homes, high job satisfaction for recent grads, transit-friendly
5. Greenville, North Carolina
Average annual early career income: $52,195
Price of a typical starter home: $187,000
Years to save for down payment: 5 years, 3 months
Monthly mortgage payment as percent of income: 28.2%
Why it rose to the top of Redfin’s rankings: Affordable rents, numerous job openings
6. Columbia, Missouri
Average annual early career income: $51,379
Price of a typical starter home: $199,900
Years to save for down payment: 4 years, 6 months
Monthly mortgage payment as percent of income: 30.7%
Why it rose to the top of Redfin’s rankings: Work-life balance, career growth potential, high job satisfaction for recent grads
7. Rochester, Minnesota
Average annual early career income: $68,496
Price of a typical starter home: $215,000
Years to save for down payment: 3 years, 5 months
Monthly mortgage payment as percent of income: 24.7%
Why it rose to the top of Redfin’s rankings: Strong starting salaries, high job satisfaction for recent grads, pedestrian-friendly
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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