A new study from GoBankingRates ranks 20 cities where the American Dream of homeownership is still attainable, despite increasing debt and home prices, and relatively sluggish wage growth.
Alex Solonin, a data researcher at GoBankingRates, says that while all of the 20 cities on the list have low housing costs, this is in part a result of slower economic growth and lower wages, per CNBC. Monthly mortgage payments in the top five of 20 cities range between $695 in Baltimore and $382 in Toledo, the number one city. The number two city, Cleveland, actually had the lowest monthly mortgage bill, $380. Oklahoma City, Okla. had the highest monthly mortgage payment out of the top 10, $887.
When it comes to the American Dream, owning a home is key. Considering that many families spend more than 100 percent of their income on monthly expenses alone, personal finance site GoBankingRates identified 20 U.S. cities where you can still purchase a house with a monthly mortgage payment of $1,000 or less. The ranking is based on median home prices from Zillow's most recent data. Monthly mortgage payments were calculated assuming a 20 percent down payment and the current average mortgage rate for the state all roughly around 4.3 percent.
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