Detroit Named "Most Affordable" Community
Coldwell Banker is out with its annual list of the most expensive and most affordable American housing markets.
The most costly is Newport Beach, California, followed by Palo Alto, California and Rye, New York. The least expensive is Detroit, followed by Grayling, Michigan and Sioux City, Iowa. A four-bedroom, two-bathroom home in Newport Beach goes for $1.8-million. The same house in Detroit would cost you $68,000.
According to the report, the average $68,000 four-bedroom, two-bathroom home in Detroit could average less than $350 a month. In contrast, a $200,000 30-year-fixed mortgage at a 4.5% rate could cost a buyer a relatively low monthly mortgage payment of just above $1,000.
Along with Detroit, the cities of Grayling and Port Huron are listed as the most affordable and all 10 of the most affordable markets are in the Midwest.
Real Estate insider Mark Gilman tells WWJ the reason why is no mystery. It's all about manufacturing.
"I think if you look at the cities that are most affected that are on this list -- places like Cleveland; Canton, Ohio; Muncee, Indiana -- these are all automotive and manufacturing sectors that have lost a ton of jobs over the last five years," Gliman said.
Gilman said Detroit's real estate situation continues to be a draw for investors.
"There's a lot of investors both in the state and outside of the state -- people coming in from California, they're coming in from Texas. There's a lot of people here that have good jobs and have some money put away who are grabbing some of these properties that are very good investments right now," he said.
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