5 Surprising Southern Cities That Middle-Class Homeowners Can Afford
As a general rule of thumb, you should aim to buy a property that’s no more than 2.5 to 3 times your annual income. Considering the average home price is $505,700 — according to the U.S. Census Bureau — this means you should ideally earn between $169,000 and $202,000 a year to afford a typical home.
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For higher earners in the middle class, these numbers are perfectly reasonable. But the middle class is a rather large spectrum, and not everyone can afford such an expensive property.
The good news is that there are some affordable — and perhaps surprising — southern cities where you can still buy a home on a middle-class income. These are some of the big ones, according to real estate agents Colten Claus and Matiah Fischer.
Greenville, South Carolina
Located near the North Carolina border, Greenville is a beautiful southern city with surprisingly low home prices. The average home value is $312,220, according to Zillow, though prices have gone up by nearly 5% over the past year. For those who earn between $100,000 and $125,000 a year, this makes Greenville a viable option for homeownership.
“Greenville’s real estate market offers a range of affordable housing options,” said Colten Claus, Realtor and associate broker at 8z Real Estate. “It has a bustling downtown, a growing job market, and excellent schools…The area’s economic growth supports affordable living for mid-range earners.”
Plus, the cost of living in South Carolina as a whole is rather low compared to other states. The overall cost-of-living index is just 97.6. Everything but utilities is cheaper than the national average. Numbeo estimates the average monthly cost for a family of four in Greenville is about $4,395 — excluding rent.
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Chattanooga, Tennessee
Located about 134 miles from Nashville is Chattanooga, another southern city with surprisingly affordable homes. The typical home value is $308,937 and rising. In fact, home prices have gone up by 5.5% over the past year, a sure sign that the area is growing.
According to Matiah Fischer, a licensed real estate agent and founder of Southern California Real Estate, you should be able to find affordable real estate in Chattanooga if you earn anywhere from $100,000 to $130,000 a year.
The city offers a lower cost of living compared to similarly sized metropolitan areas. More than that, it also has a lot to offer when it comes to quality of life, outdoor amenities and recreational options, cultural attractions, and good schools for those with kids.
While some places in Tennessee have become expensive over the years, the state has an overall cost-of-living index of 90.3 — lower than the national average. It’s considered the tenth cheapest state to live in.
Huntsville, Alabama
Fischer also recommended Huntsville, Alabama. It’s a mid-sized city with roughly 220,000 people and plenty of opportunities for middle-class families. It has great schools, a thriving arts and culture scene, and a growing economy — particularly in technology and aerospace.
The cost-of-living index in Alabama is quite low at 88.1, making it the fourth cheapest state to live in. According to Numbeo, the estimated monthly cost of living for a family of four is just over $3,500 without rent or a mortgage.
Currently, the average cost of a home in Huntsville is $281,657. This is a slight year-over-year increase, but it’s still much lower than the national average.
Lexington, Kentucky
For lovers of the equestrian arts, Lexington is another southern city — with touches of midwestern influence — where homes are still affordable. The average property value is $305,566, a 6.6% increase from last year. The overall cost of living in Kentucky is also quite low as everything — including housing — is cheaper than the national average.
“Lexington provides affordable housing with a cost of living that is lower than many other parts of the country,” said Claus. “[It] offers a mix of urban and rural living, with numerous parks, historical sites, and a thriving local food scene.
Fayetteville, Arkansas
Last but not least is Fayetteville, a mid-sized southern city located near the Ozark Mountains — and about a three-hour drive from the state’s capital of Little Rock.
The overall cost-of-living index of Arkansas is 88.5, making it the seventh cheapest state in the country. Housing costs in particular are well below the national average, though you might find Little Rock to be slightly less expensive.
In Fayetteville, the typical home value is just $356,151. This is a 5.1% increase from the past year, but it’s still reasonably affordable for middle-class earners.
Affordability isn’t all the city has to offer either.
“The city has a strong economy with major employers like Walmart and Tyson Foods headquartered nearby,” said Claus. It’s also home to the University of Arkansas and has a thriving arts and music scene.
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