The Most Affordable ZIP Codes to Buy Property in Every U.S. State - Vivid Maps (2024)

This post may contain affiliate links. As an Amazon Associate, we earn from qualifying purchases.

The current average cost of a house in the U.S. surpasses half a million dollars. In a nation that harbors both a significant portion of the world’s billionaires and 37.9 million individuals living in poverty, this figure could either be astronomically beyond one’s budget or just a drop in the bucket.

However, this figure alone does not reflect the significant disparity in housing prices throughout the country. Sure, we know that homes in Hawaii and California tend to be more expensive than in other states. We also know that properties in cities like New York and San Francisco cost hundreds of thousands more than in rural towns.

Yet, the question remains: how much do house prices fluctuate on a neighborhood-to-neighborhood basis? Are the residents of these neighborhoods able to afford homeownership at all? To address these inquiries, American Home Shield embarked on a quest to uncover the most and least affordable ZIP codes for residents to purchase a home in the U.S.

Key Findings

• The most affordable ZIP code in the country for locals to purchase a house is 48505 in Flint, Michigan. The median house price is 0.95 times the median annual salary of a local worker.
• Conversely, the least affordable ZIP code is 90210 in Beverly Hills, Los Angeles, where a typical home costs 34.82 times what a typical local worker earns in a year.
• In New York City, two ZIP codes in the Bronx stand out as the most (10462) and least (10454) affordable for local residents to buy a home.
• In Chicago, 60661 (Near West Side) is the most affordable ZIP code, while 60629 (Logan Square) is the least affordable.
• Houston sees 77345 (Kingwood) as its most affordable ZIP code, while 77024 (around Piney Point Village) is the least affordable.
• In Philadelphia, 19133 (Fairhill) represents the most affordable ZIP code, while 77024 (parts of Ludlow) emerges as the least affordable.

The Least Affordable Zip Code to Buy Property in Every U.S. State

In the least affordable ZIP codes, even high incomes fail to counterbalance soaring housing costs. For instance, on the island of Nantucket in Cape Cod (02554), where the typical household earns $116,470 annually, the median home price of $2.7 million amounts to 22.8 times the median income—rendering it the least affordable ZIP code in Massachusetts. However, the title of least affordable overall goes to the renowned 90210 ZIP code in Beverly Hills, where the median home price is 34.8 times the income.

The Most Affordable Zip Code to Buy Property in Every U.S. State

Below is a map of the U.S. showcasing the most affordable ZIP code in each state. In Texas, a state experiencing a surge in new residents this year, the title goes to 79007, located in the city of Borger. Here, a typical house costs just 1.65 times the average annual income of local workers. Even the wealthiest states have their more affordable ZIP codes; in the 6074 ZIP code of South Windsor, Connecticut, a typical home costs 2.94 times the local median annual salary.

The Most and Least Affordable Zip Codes to Buy Property Across America

In the ZIP code 48505 of Flint, Michigan, the median home price ($27,703) falls below the annual income of a typical local worker ($29,061), resulting in a home price-to-household income ratio of 0.95. This distinction earns the ZIP code the title of the most affordable in the country for locals to purchase a house. Flint has faced significant challenges, including a crisis involving lead and harmful bacteria contaminating the local water supply, which has led to a decline in the city’s population, likely reducing the demand for housing.

Following Flint, the ranking is predominantly filled with ZIP codes in America’s Rustbelt, an area that experienced economic decline following the downturn in heavy industry. Population has also dwindled in these areas, but in recent years, millennials have been drawn to Rustbelt towns due to their more affordable housing options.

The Most and Least Affordable Zip Codes in New York City

Focusing on New York City, renowned as one of the world’s most expensive cities, the most affordable ZIP codes mainly include neighborhoods in the Bronx, Queens, and Staten Island. However, one ZIP code stands out: 10017, where the median home price is 5.16 times the annual income of a typical local worker. This ZIP code encompasses Murray Hill, a Manhattan neighborhood just blocks away from the Empire State Building. As of 2018, it is not considered gentrified based on the comparison of median rent and income.

The Most and Least Affordable Zip Codes in Los Angeles

Los Angeles is a city known for its wealth, where even five million dollars may not be enough to buy a mansion, as claimed by affluent property owners opposing a local tax intended to aid the homeless. However, there are certainly ZIP codes in Los Angeles where it’s feasible for average earners to purchase a home. One such ZIP code is 91307, encompassing the areas of Bell Canyon and West Hills. Here, a typical home is priced at just 7.80 times the annual income of a local household, amounting to an impressive $125,343.

One of the least affordable ZIP codes in Los Angeles is 90007, with a ratio of 27.79. This ZIP code includes the neighborhood of North University Park, which ranks among the lowest-income neighborhoods in the country. Located near the University of Southern California, this area has witnessed the emergence of luxury housing developments primarily targeting students, posing a threat to the existing residents. Furthermore, landlords have been evicting long-term renters to convert their properties into lucrative student accommodations.

The Most and Least Affordable Zip Codes in Chicago

Ranked as the most affordable ZIP code in Chicago, 60661 boasts a median home price that is only 2.30 times the median annual income of local residents. This ZIP code encompasses the Near West Side community, where a new mixed-use development broke ground in July, intending to provide 63 affordable residential units. Following closely, 60655 (2.73) is among the next-most affordable ZIP codes, encompassing the Mount Greenwood community area, known as one of the wealthier areas in the city.

Other ZIP codes in the Second City present challenges for the average local in terms of affordability. For instance, 60647 (Logan Square) stands out, with a typical home costing 5.30 times more than the median household income. Logan Square’s affordability landscape has transformed significantly due to gentrification in the twenty-first century. Previously, the area’s low rents and housing prices attracted immigrants and working-class citizens. Additionally, among the other least affordable ZIP codes are 60639 (5.28) and 60608 (5.26).

The Most and Least Affordable Zip Codes in Houston

In Houston, Texas, the 77345 ZIP code claims the title of the city’s most affordable area for locals to purchase property. Situated in the planned community of Kingwood, residents can acquire a home for just 2.69 times their annual income, with the cost of living being 6% lower than the national average. Following closely is 77054 (3.02), covering the Astrodome neighborhood, known for its higher proportion of residents working as executives and managers compared to 99.8% of American neighborhoods.

The Most and Least Affordable Zip Codes in Philadelphia

The 19133 ZIP code in Philadelphia stands out as the most affordable area in which to purchase a home within the city. Here, the median price of a house is just 2.36 times the median annual salary of a local worker. It’s important to note that this ZIP code has a poverty rate five times higher than the national average, making it the poorest in the city. Following closely is 19132 (2.51), covering an area to the west of Fairhill.

Philadelphia also harbors neighborhoods where purchasing a home is beyond the means of the average local earner. According to Pew Charitable Trusts, “In Philadelphia, there simply isn’t enough affordable housing for a large number of residents at the low end of the income scale.” The ZIP code 19122 stands out as the least affordable of all, with a typical home costing 6.65 times the annual income of a local worker. Interestingly, this ZIP code encompasses an area just south of the most affordable ZIP code in the city.

Crucial Budgeting Tips for First-Time Home Buyers

Amidst soaring house prices and interest rates, it’s understandable that the proportion of first-time home buyers in the United States plummeted to a record low in 2022. However, if you’re embarking on the journey to purchase your first property, don’t lose hope — follow our indispensable tips to navigate budgeting like a seasoned pro.

Determine Your Affordability

Start by assessing your gross monthly income. A general guideline is to seek a property that won’t require you to allocate more than 28% of your monthly gross income towards your mortgage. Also, consider any existing debts, such as student loans.

Mortgage lenders scrutinize your debt-to-income ratio when evaluating your mortgage eligibility. According to Investopedia, lenders typically prefer a debt-to-income ratio below 36%, with no more than 28% of that debt dedicated to servicing a mortgage or rent payment.

Analyze Your Current Spending Habits

Utilize free online budget templates to track your monthly expenses. This exercise not only helps you determine how much of your income should be designated for essentials, such as bills, but also allows you to identify expenses that can be minimized to bolster your savings for a down payment.

While you need not eliminate all discretionary spending, consider sacrificing a luxury or two temporarily. Review your bank statements; you might be among the 42% of Americans still paying for unnecessary subscriptions.

Explore Government-Backed Assistance Programs

First-time buyers seeking to maximize a modest budget should explore whether they qualify for assistance from government-backed loan programs or incentives. For instance, certain Federal Housing Administration (FHA) programs enable first-time buyers to secure a home with just a 3.5% down payment. For detailed information, refer to Investopedia’s guide on incentives for first-time buyers.

Once you’ve taken the plunge and obtained the keys to your first home (phew!), ensure your property is adequately insured and protected by a home warranty, safeguarding all essential systems and appliances against unforeseen breakdowns.

Methology

To identify the most affordable ZIP codes for property purchases, the American Home Shield team analyzed data on home prices sourced from Zillow and income data from the U.S. Census Bureau. ZIP codes were ranked based on the ratio of median home price to median household income. Those with the highest ratios of median home price to median household income were categorized as the least affordable, while those with the lowest ratios were designated as the most affordable. The median home price data is current as of October 2023 and obtained from Zillow, while median household income data is sourced from the U.S. Census Bureau’s 2021 American Community Survey. The analysis included only ZIP code tabulation areas with a population of at least 10,000 residents.