The Most Affordable ZIP Codes for Homebuyers 

On average, the typical cost of a U.S. home currently costs more than half a million dollars, according to a new study from American Home Shield. In a nation home to the majority of the global billionaires as well as nearly 38 million people living in poverty, that number may seem absurdly high or trivial to an affluent individual.

However, that number doesn’t really convey the enormous variation in home prices across the nation. Indeed, we are aware that properties in the sun-drenched states of California and Hawaii often command far greater prices than those in any other state. Furthermore, it is known that the typical house in affluent areas like New York and San Francisco could be sold for hundreds of thousands of dollars more than a comparable property in a rural area.

But to what extent do housing values vary from one community to the next? Can the residents of these communities afford to purchase a home at all? American Home Shield research revealed the most affordable ZIP codes to buy property in every state.

Key Findings:

  • The most affordable ZIP code in the country for locals to buy a house is 48505 in Flint, Michigan. The median house price is 0.95 times the median annual salary of a local worker.
  • The least affordable is the 90210 ZIP code of 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 are 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 60653 (Grand Boulevard) is the least affordable.
  • In Houston, 77345 (Kingwood) is the most affordable ZIP code, while 77024 (around Piney Point Village) is the least affordable.
  • In Philadelphia, 19133 (Fairhill) is the most affordable ZIP code, while 77024 (parts of Ludlow) is the least affordable.

Flint, MI, ZIP Code Dubbed Most Affordable Place in the U.S. for Locals to Buy Property

The median home price in the 48505 ZIP code in Flint, Michigan is $27,703—less than the annual salary of the typical local worker ($29,061). This results in a home price-to-household income ratio of 0.95. Because of this, the ZIP code is recognized as the most reasonably priced in the U.S. for residents to purchase a home. After a crisis that resulted in lead and dangerous bacteria being found in the city’s water supply, the population of the entire city has decreased, which is probably going to reduce demand for housing.

Following that, ZIP codes from America’s Rustbelt—a area that struggled economically as a result of the downturn in heavy industry—make up the majority of the ranking. Although population has decreased as well, millennials have been moving to Rustbelt towns in large numbers recently since housing costs are lower there.

The Most and Least Affordable ZIP Codes to Buy Property in America

The code 79007—located in the city of Borger—takes the title in Texas, a state that has seen a surge in new residents this year. A typical house in 79007 costs only 1.65 times the annual salary of the average local worker. Even the wealthiest states have more cheap ZIP codes; in South Windsor, Connecticut’s 06074 ZIP code, the typical home costs 2.94 times the annual median earnings of the community.

In Nevada, it’s the 89106 ZIP code of Las Vegas (9.58), and in Pennsylvania, it’s 15213 in Pittsburgh (10.10). Among the very least affordable ZIP codes on the map is 02554 in Nantucket, Maine (22.76).

A Typical Home in One Bronx ZIP Code Costs Over 31 Times a Local Worker’s Income

Specifically focusing on New York City, known as one of the world’s priciest cities tp live, the most reasonably priced ZIP codes primarily include parts of Queens, Staten Island, and the Bronx. However, 10017 is a particularly noteworthy ZIP code, with a median housing cost that is 5.16 times greater than the annual salary of the average local worker.

This code applies to Murray Hill in Manhattan, which is located near the Empire State Building and isn’t thought to be gentrifying as of 2018 due to the neighborhood’s median rent increasing in relation to income.

In Chicago, Houses in One ZIP Code Sell for 5.30 Times What Locals Earn in a Year

The 60661 ZIP code ranks as the most affordable in Chicago. In the Near West Side neighborhood, the median home price falls to just 2.30 times the median yearly income of the local earner. In July, a new mixed-use complex with 63 affordable residential units was set to break ground here. 60655 (2.73), which includes the Mount Greenwood neighborhood area, one of the richer parts of the city, is among the next most cheap ZIP codes.

For the typical local, other Second City ZIP codes are more expensive. In that regard, 60653 (Grand Boulevard) has the highest average property cost, which is 8.78 times more than the median household income. In Grand Boulevard, the median price of a single-family home rose by almost $200,000 between 2018 and 2022. The remaining least expensive ZIP codes are 60612 (6.11) and 60637 (6.25).

To read the full report, including more data, charts, and methodology, click here.

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Demetria C. Lester

Demetria C. Lester

Demetria C. Lester is a reporter for MortgagePoint (formerly DS News and MReport) with more than eight years of writing and editing experience. She has served as content coordinator and copy editor for the Los Angeles Daily News and the Orange County Register, in addition to 11 other Southern California publications. A former editor-in-chief at Northlake College and staff writer at her alma mater, the University of Texas at Arlington, she has covered events such as the Byron Nelson and Pac-12 Conferences, progressing into her freelance work with the Dallas Wings and D Magazine. Currently located in Dallas, Texas, Lester is a jazz aficionado, Harry Potter fanatic, and likes to read. She can be reached at demetria.lester@thefivestar.com.
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