Where Home Buyers Get the Most Bang For Their Buck

January 16, 2024 - 6 min read

Spending wisely

When buying something as significant as a home, you want to make sure you get good value.

But that goes beyond just the price. The quality of the property and neighborhood also play big roles. A report from All Star Home compared those three factors using Census Bureau survey data in 25 of the largest U.S. metro areas.

The findings revealed where home buyers got the best values.

Check your home buying options. Start here

Where money goes the furthest

With housing prices high and affordability tight, prospective home buyers comb through listings hoping to unearth relative bargains.

Although, the final price is only one measure of value. The home’s condition and amenities of the surrounding area weigh on how happy borrowers are with their purchase.

The housing markets providing the best returns on investment combine affordability, homeowner satisfaction, and desirable neighborhood attributes.

All Star Home created their list by analyzing data from the U.S. Census Bureau’s American Housing Survey. In the survey, homeowners were asked to rate aspects of their current home and neighborhood on a scale of 1 to 10, with 10 being the best. All Star Home added the average scores and divided them by each area’s median home value (the Census Bureau’s median from 2018-2022) to show where people got the most housing bang for their buck.

Below are the top 12 housing markets by All Star Home’s rating-to-value ratio. The order varies slightly from the original report, as the Census Bureau updated its median home values:

12. Minneapolis, Minnesota

Average Neighborhood Rating: 8.47
Average Home Rating: 8.54
Median Home Value: $328,700
Rating-to-Value Ratio: 0.00518%

11. Richmond, Virginia

Average Neighborhood Rating: 8.47
Average Home Rating: 8.53
Median Home Value: $308,300
Rating-to-Value Ratio: 0.00551%

10. Chicago, Illinois

Average Neighborhood Rating: 8.44
Average Home Rating: 8.41
Median Home Value: $304,500
Rating-to-Value Ratio: 0.00553%

9. Dallas, Texas

Average Neighborhood Rating: 8.35
Average Home Rating: 8.42
Median Home Value: $270,700
Rating-to-Value Ratio: 0.00620%

8. Houston, Texas

Average Neighborhood Rating: 8.15
Average Home Rating: 8.35
Median Home Value: $235,000
Rating-to-Value Ratio: 0.00702%

7. Philadelphia, Pennsylvania

Average Neighborhood Rating: 8.22
Average Home Rating: 8.38
Median Home Value: $215,500
Rating-to-Value Ratio: 0.00771%

6. Baltimore, Maryland

Average Neighborhood Rating: 8.37
Average Home Rating: 8.51
Median Home Value: $202,900
Rating-to-Value Ratio: 0.00832%

5. Oklahoma City, Oklahoma

Average Neighborhood Rating: 8.14
Average Home Rating: 8.30
Median Home Value: $196,700
Rating-to-Value Ratio: 0.00836%

4. San Antonio, Texas

Average Neighborhood Rating: 8.32
Average Home Rating: 8.41
Median Home Value: $198,000
Rating-to-Value Ratio: 0.00845%

3. Birmingham, Alabama

Average Neighborhood Rating: 8.27
Average Home Rating: 8.31
Median Home Value: $123,000
Rating-to-Value Ratio: 0.01348%

2. Rochester, New York

The Hottest Housing Markets for 2024

Average Neighborhood Rating: 8.38
Average Home Rating: 8.45
Median Home Value: $111,400
Rating-to-Value Ratio: 0.01511%

1. Detroit, Michigan

Average Neighborhood Rating: 8.36
Average Home Rating: 8.52
Median Home Value: $66,700
Rating-to-Value Ratio: 0.02530%

Check your home buying eligibility here

The bottom line

With home buying proving to be expensive, borrowers need to know where their money goes the furthest.

Luckily, some housing markets offer better affordability than others, with better relative affordability. But don’t worry if your city didn’t make the list, you can always shop around for interest rates and negotiate with the seller.

If you’re ready to start your journey to homeownership, talk to a local lender today.

Time to make a move? Let us find the right mortgage for you

Paul Centopani
Authored By: Paul Centopani
The Mortgage Reports Editor
Paul Centopani is a writer and editor who started covering the lending and housing markets in 2018. Previous to joining The Mortgage Reports, he was a reporter for National Mortgage News. Paul grew up in Connecticut, graduated from Binghamton University and now lives in Chicago after a decade in New York and the D.C. area.
Aleksandra Kadzielawski
Reviewed By: Aleksandra Kadzielawski
The Mortgage Reports Editor
Aleksandra is the Senior Editor at The Mortgage Reports, where she brings 10 years of experience in mortgage and real estate to help consumers discover the right path to homeownership. Aleksandra received a bachelor’s degree from DePaul University. She is also a licensed real estate agent and a member of the National Association of Realtors (NAR).