Housing Crisis? What Housing Crisis?
Six Cities Where Housing Supply Meets Housing Demand
A couple in downtown Pittsburgh, PA
If you’re reading this blog, you probably know only too well that the US is in the middle of a terrible housing crisis. The supply of affordable rentals is acute, but even more worrying – from the perspective of policymakers – is the shortage of affordable homes for sale in and around America’s biggest and most popular cities, combined with the inability of large segments of the US population to afford the homes that are for sale.
Why does this housing shortage exist? Why aren’t more homes coming onto the market? A million different reasons. Stubborn inflation. Elevated interest rates and construction costs. Local governments have put restrictions on land development and construction in place. A rapidly rising population. Flat wage growth. Financing challenges. Intense competition among buyers in specific sectors of the country. All of these factors and concerns, and many more, are making home buying an enormous challenge – not only for young people but for would-be homeowners of every age and station.
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In fact, a recent survey conducted by Clever Real Estate, a listing service for both home buyers and home sellers, found that 44 out of 50 – or 88 percent – of the nation’s largest cities do not offer homes for sale that someone earning a median income in that area could afford. The researchers contend that an “affordable” home is one that costs buyers no more than 30 percent of their gross monthly income in the form of mortgage payments, insurance, taxes, and related fees. Anything higher than that and the home is “unaffordable” by definition.
Using these metrics and an abundance of housing data from every part of the country, it is clear that homes in and around America’s major cities are entirely out of the reach of local residents who earn close to the median income. This is a dire situation and one that policymakers across the country, from Washington, DC to each and every state capital – east to west and north to south – must begin to address.
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No part of the country is entirely untouched by these trends, but according to the Clever Real Estate study, some are definitely faring better than others. Below we profile the six cities highlighted in the study, four in the Midwest and two in the South, that are bucking national and state trends by offering a home-buying environment that – while far from perfect – at least offers would-be buyers a chance of getting into the current housing market.
The most remarkable common feature of these six cities may be the fact that in each of them, you can buy a home for under $300,000. Meanwhile, in a city like San Francisco or Boston, you’ll be lucky if $300,000 covers a 20% downpayment!
So let’s take a closer look at what each of these cities, and their respective housing markets, have to offer. Here we go!
Pittsburgh, Pennsylvania
Pittsburgh has quietly emerged as a very real option for those in search of affordable housing and a great quality of life. Situated in the heart of Pennsylvania, the Greater Pittsburgh area – with a population of roughly 2.5 million – offers attractive economic opportunities, strong job growth, surprising cultural dynamism, and a comparatively low cost of living. Pittsburgh is home to a number of university campuses and maintains a strong connection with the steel industry. The local arts and culture scene, in which music, theater, and dance feature prominently, is vibrant and growing. It is also a center for clean energy and tech start-ups – and, crucially, it’s been named repeatedly in recent years one of the most livable cities in the US.
Housing prices in Greater Pittsburgh are extremely affordable when compared to other metro areas in the Midwest and beyond. Even in the city’s best and most popular neighborhoods, home prices are typically well below the national median list price of $420,000. According to Clever Real Estate, the median home sale price in Pittsburgh is roughly $199,500, less than half the national figure. And most of those who rent – amazingly – pay less than $1000 per month.
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Pittsburgh makes a point of green-lighting construction projects quickly, which keeps inventory high and exerts downward pressure on prices. But an even more important element is simple supply and demand. Simply put, many people under-rate Pittsburgh and don’t consider it a potential destination. A ton of students and a lot of new workers – in the tech sector especially – relocate to Pittsburgh every year, but generally speaking, housing availability in Pittsburgh reflects the fact that most Americans continue to gravitate to the coasts (California or New York especially) or the South (North and South Carolina, Virginia, Florida) or Southwest (Nevada, Arizona, New Mexico) – not the Midwest. That’s a shame, but it also means that Pittsburgh is, for the time being anyway, very much a buyer’s market.
Cleveland, Ohio
Cleveland is another incredibly vibrant, consistently underrated Midwestern city that offers tremendous quality of life at a relatively low price point. The population of the Greater Cleveland metro area is approximately 2,160,000. With its lively and diverse neighborhoods, abundant city parks, renowned restaurants and bars, high-quality public and private schools, professional baseball team, and attractions like Lake Erie, the Rock & Roll Hall of Fame and the Cleveland Museum of Art, Cleveland should be a place where house prices spiral ever-upward. But that’s not the case at all. In fact, though the housing market in Cleveland is best described as a seller’s market—with most houses selling at or above their asking price—the median home sale price is only about $183,00, or well under half the national average.
Pepper Pike, OH: A quiet, leafy suburb of Cleveland renowned for its quality of life, its schools, and its proximity to the city proper.
Cleveland’s economy is diverse and driven by sectors like healthcare, manufacturing, sports, finance, and education.
Average incomes are slightly lower than the national average, but the cost of living is lower still, meaning more disposable income and greater ability to manage mortgage payments and all the other costs associated with owning a home.
Cleveland is experiencing a housing crisis like much of the rest of the country, but the bulk of that crisis is centered on the availability of affordable rental units. Meanwhile, lawmakers have been working on incentives to spur home builders and increase the supply of homes for prospective buyers.
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Even though Cleveland is technically a seller’s market, like Pittsburgh, the fact is that this Midwestern city has been working to arrest population decline – which has had such a devastating impact on Detroit over on the other side of Lake Erie. Cleveland has been largely successful in this effort, but even so, this is not a growing city, and the forces of supply and demand being what they are, Cleveland still has a sufficient number of available homes to meet buyer demand. Just as in Pittsburgh, there are incredible deals to be had in and around Cleveland, particularly for first-time home buyers. This is a great city to live in, whether you’re single raising a family, or looking for an affordable spot to retire.
St. Louis, Missouri
One of the best-known cities in the American Midwest, sitting at the confluence of the Mississippi and Missouri rivers, St. Louis boasts a population of roughly 300,000, and within its larger metropolitan area, close to three million.
St. Louis is a vibrant city known for its music, its nightlife, its eateries, its various landmarks (like the Gateway Arch), its museums and breweries, and, of course, a deeply-rooted sports culture dominated by the St. Louis Cardinals (MLB) and the St. Louis Blues (NHL).
The city is also known, increasingly, as one of the few places left in the United States where homes – especially homes of interest to first-time home buyers – are still affordable.
Quality of life in St. Louis – depending on exactly where you live in the city – can be enviable, with a relatively low cost of living and an abundance of properties available to prospective buyers. Central West End, Forest Park Southeast, and Botanical Heights are some of the best neighborhoods in the city, but there’s no shortage of tranquil and well-developed suburbs that deliver high quality of life, low crime, and well-regarded public and private schools.
The economy in and around the city is good, with significant opportunities in healthcare and manufacturing.
Kirkwood, MO: A popular suburb of St. Louis that blends historic charm, modern amenities, good schools, low crime rates, and a strong sense of community.
The population of St. Louis is growing, and the housing market is considered a seller’s market, but there are – again – plenty of properties on the market that first-time home buyers are able to afford. There’s enormous pressure in the rental market, it’s true, and far too many renters are severely cost-burdened, but the fact remains that the median price for a home in the city is $226,000, or a third less than the national median home price. Both the state of Missouri and the city of St. Louis encourage home construction and many of the barriers and constraints that limit home construction in other parts of the country are absent here. The housing sector is expected to remain dynamic going forward.
Memphis, Tennessee
As one of the centers of country music in the United States, and one of the origin points of both the blues and rock n’ roll, Memphis is world-renowned—and justly so. With a population of just over 633,000, and situated on the Mississippi, Memphis is characterized by the diversity of its landscapes and its neighborhoods. Many celebrities live in the city, and it’s also home to a very large African-American population. Memphis was one of the cultural, political, and economic centers of the Antebellum South, but even after the Civil War, it retained much of its popularity and vigor. The greater metro area boasts a population of about 1,180,000.
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The median price of a home in Memphis today is roughly $214,000. In more upscale parts of the city, higher prices are obviously the norm. In Germantown, for example, a suburb of Memphis, the median sale price is about $530,000. Yet in Riverside, the most affordable neighborhood in the city, it’s possible to purchase a decent home for as little as $60,000 – a stunningly low price.
A luxury home in Germantown, TN, an affluent suburb of Memphis.
Overall, the property market in Memphis is highly-affordable and supply outstrips demand, at least in terms of the availability of homes for purchase (though the rental market is much tighter). Downtown Memphis, in particular, is very much a buyer’s market. Median prices are one-third less than the national average and the cost of living is relatively low: at least 10 percent below the national average.
Elevated interest rates and increased labor costs have meant that there isn’t as much construction going on today as was the case in the past, but even so, new home construction has been able to keep up with demand—in spite of the fact that the Greater Memphis area, and Tennessee more broadly, are experiencing rapid population growth. Crucially, median wages in and around Memphis are sufficient to allow someone buying a median-priced home to afford the payments.
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Unlike some of the other cities featured on this list, Memphis is economically vibrant and growing by most measures. It’s a major center of the cotton industry, of hardwood lumber trading and processing, and of soybean processing. Agricultural products are a key element of economic activity in Memphis, as are both agricultural research and food processing. The city is a major wholesale center, and—perhaps surprisingly—products like electronics, medical equipment, and paper products are all manufactured in or around Memphis.
Some of the city’s biggest employers operate in industries like health care, banking and finance, government, education, tourism, the hosting of trade shows and conventions, and high technology. FedEx is based in Memphis.
Memphis is also a sports center (i.e., the Memphis Grizzlies basketball team) and a center of arts and culture. Renowned public and private colleges abound. Quality of life is excellent and health care and education are high quality and accessible. And importantly (to me anyway) Memphis is inside the Sun Belt! Just barely, but it’s there. The city’s climate is humid subtropical, with four distinct seasons heavily influenced by weather patterns in the Gulf of Mexico.
Indianapolis, Indiana
Indianapolis, Indiana’s capital city, isn’t quite as celebrated as Memphis is, but the two cities actually have a bit in common. It has about 890,000 people, making it only a bit bigger than Memphis, and—like Memphis—it’s situated on a major river (the White River). However, the population of the surrounding metro area tops 2,111,000 – double the size of Memphis’ own metro area.
The City is also an important arts and cultural center, and it remains a major manufacturing and distribution center. Just as it did in the 19th century, Indianapolis specializes in trade and transport, manufacturing, utilities, and professional and business services; other important sectors of the local economy include education, health care, government, and leisure and hospitality.
Indianapolis is an incredibly underrated American city.
It plays host to two major league sports franchises (the NFL’s Indianapolis Colts and the NBA’s Indianapolis Pacers), three Fortune 500 companies, eight college or university campuses, and an impressive number of cultural institutions. Despite problems with violent crime and homelessness in its core urban areas, Indianapolis is prosperous and growing, with enviable parks and canals, an excellent education system, vibrant nightlife, safe and secure suburbs, spectacular bars and eateries, and most important of all, a friendly and welcoming population.
Home currently for sale in Indianapolis (approx. $255,000).
Despite all this, the median home price in the city is only $258,000. And compared to other cities on this list, inventory is relatively low. Home building companies have to jump through a ton of hoops to get projects off the ground, and this has had the effect of depressing construction activity. Prices have risen in response to the inventory crunch as well as an improving economy and a rising population, but high interest rates have meant that many younger people and new arrivals, as well as some families, are choosing apartments, not single-family homes—at least for the time being.
In spite of all that, median-income earners can still afford median-priced homes in Indianapolis when they become available, and that fact alone helps the city qualify as one of the most affordable metro areas in the country. One other thing that helps: is the cost of living, which is 10 percent below the national average. You get tremendous bang for your buck in Indianapolis. Count on it!
Birmingham, Alabama
Birmingham remains one of America’s most historically significant and fascinating small cities. Though the population of Birmingham itself is only about 200,000, the greater metropolitan area is far bigger at 1,115,000 (approx.). Associated with the Deep South — despite the fact that it was actually founded after the Civil War — Birmingham was the industrial center of the South through to the close of the 1960s, and a major producer of iron and steel as well as railroad equipment.
Outdoor recreation is abundant and varied in Birmingham, aided by the fact that there are more than 100 parks within the city limits. Birmingham also has a rich historical heritage—with numerous museums, historical sites, and cultural landmarks—and neighborhoods cater to every imaginable taste, though all display a strong sense of community.
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Though Birmingham remains a major manufacturing center, other industries have been making their presence felt as well, including banking, telecommunications, transportation, utilities, health care, education, and insurance. The city is one of the major business centers of the Southeastern United States and an important hub of the country’s banking sector.
Known for its Southern-themed eateries, varied bars, and breweries, and its local sports teams, Birmingham is an incredibly youthful city. The cost of living is unusually low—roughly 8 percent below the national average. Housing costs are a full 22 percent below the national average, though the beneficial impact of this is countered somewhat by a low median household income of only $40,000. Renters in apartments and other types of accommodation are currently paying about $1500 per month.
Home for sale in Birmingham, AL (approx. $200,000).
The median sale price for a home in Birmingham, currently, is a very reasonable $192,000 (approximately). The median income in and around Birmingham is also low, but even so, most local residents can afford the mortgage payments for this type of residence – something that simply isn’t true in most of the country. Birmingham is expanding economically and growing demographically, and though this typically puts pressure on housing stock, construction in Greater Birmingham has kept pace. It’s a market that’s between buyers and sellers.
International Van Lines (IVL):
The World’s Premier Long-Distance Moving Company
International Van Lines (IVL) is the world’s premier local, long-distance, and international moving company. The IVL advantage? Simple. We’ve got the infrastructure, the resources, the personnel, and the experience. No other moving service can match what we do. Allied Van Lines? United Van Lines? JK Moving Services? Mayflower?
None come close to matching what IVL delivers to its customers every day of the year, all over the world.
Whether you’re moving to the other side of the street or the other side of the planet, we deliver a smooth, predictable, and stress-free moving experience. Believe us when we say: you’ll never regret choosing IVL. We guarantee that your personal possessions will arrive on time, on budget, and in pristine condition.
Based in Coral Springs, Florida, but now serving over 180 different countries worldwide, IVL’s reputation for excellence continues to grow. Over the past 25 years, we’ve mastered every aspect of full-service door-to-door relocation. No other local, long-distance, or international mover does it better.
IVL relies on the following transport methods: air freight, ocean freight, and our enormous and growing fleet of high-end moving vans and trucks. We also offer our customers a wide variety of storage services (see below), so whatever your plans may be upon arrival at your new home, we’ve got you covered.
Click Here for Your Free Long-Distance Moving Quote Today!
Josh Morales, IVL founder and CEO
To get your free local, long-distance, or international moving quote online, and for easy access to all the moving info you’ll ever need, head on over to our website at www.internationalvanlines.com.
If you’d like to speak to an IVL rep directly, call us any time at (877) 647-1336. We’re always happy to assist existing and prospective IVL customers with their long-distance moving needs.
Our Local, Long-Distance, and International Moving Services
As a full-service mover, IVL offers comprehensive services that are door-to-door and encompass every aspect of the moving process. Here’s a brief overview of what we offer:
- Comprehensive packing and unpacking services.
- Furniture assembly and disassembly.
- Specialized services for high-value and/or fragile items, including art, antiques, collector automobiles, family heirlooms, and important documents.
- Transport via ocean freight and/or air freight, as well as via our fleet of high-end moving trucks and vans.
- Rubbish removal.
- Vehicle transport, domestic or international.
- Varied storage services (short-term, long-term, standard, climate-controlled).
- Full customs clearance management.
- Insurance coverage provides basic moving protection; full value protection available for purchase.
- Full corporate and military relocation services.
- Live chat and customer service 24/7.
- Easy, real-time shipment tracking, regardless of whether your move is local, long-distance, or international.
How Much Does IVL Charge?
IVL team members at company HQ in Coral Springs, FL
To get a firm grasp of what IVL charges, we recommend you do one, or both, of the following:
Use Our Online Moving Cost Calculator
Take a few minutes to check out our online moving cost calculator – AI-driven and reflective of up-to-date fuel costs and other expenses – to get a solid feel for what your move is likely to cost. When requesting a moving quote from IVL, be sure to provide your move details in full – especially your destination zip code – to ensure the most accurate quote possible.
Contact IVL Directly
Sometimes it’s difficult to explain the unique circumstances of a move using an app alone. In such cases, feel free to contact IVL directly for an estimate or a much more detailed quote based on your unique circumstances.
Keep this in mind as well: moving costs – and fuel costs in particular – can shift rapidly. These shifts can influence pricing, and in some instances, the final bill you receive may differ slightly from your initial estimate or quote.
In all circumstances, however – from charges and fees to logistics and tracking – IVL is fully transparent with you, the customer. It’s your opinion that matters to us in the end – no one else’s.
Is There Anything Else I Should Know?
Partnerships
To promote the speed and efficiency of your move, IVL, like many movers, may partner with one or more local moving companies at certain points of the moving process—the final stages in particular.
Fees and Charges
There is also a 25 percent deposit required to reserve a moving date. The balance is then split into two separate payments: 50 percent on moving day, and the remainder upon delivery. The deposit can be made using a credit card, check, or ACH.
Cancellation Policy
The initial deposit is refundable in the event of cancellation.
However, given the complex and time-consuming logistical arrangements that international moves require, deposits and fees collected for such moves are not refundable in the event of cancellation.
Is IVL Fully Licensed?
Yes. Per requirements of the federal government regarding proper licensing, IVL is licensed by DOT, FMC and AMSA (the latter having been recently absorbed by ATA).
Click Here For Your Free Long-Distance Moving Quote or Contact IVL Directly at (877) 647-1336
