Ohio: The Last Affordable Housing Havens

Youngstown and Akron: The Last Affordable Housing Havens

In the midst of a nationwide housing crisis, Youngstown, Ohio, and neighboring Akron stand as the final two metro areas where homebuyers of nearly any income level can still find affordable single-family homes, according to the National Association of Realtors.

The Flight From Unaffordable Markets

Sharon Reese, a former Las Vegas resident, was forced to return to her hometown of Youngstown after 18 years due to the exorbitant housing costs in her former city. Despite a successful career, Reese found herself priced out of the Las Vegas market, where homes now command prices exceeding $600,000.

Affordability Scores in Decline

Prior to the pandemic, 20 states were considered affordable under the Realtors’ definition, including swing states like Michigan and Pennsylvania. However, as of 2023, no state has achieved an overall affordability score of 1. Even states like Iowa, West Virginia, and Ohio, which once had the closest match between income and home prices, have fallen short.

The Least and Most Affordable Areas

As inflation and interest rates rise, the disparity between home prices and incomes has widened significantly. Montana and Idaho have overtaken California as the most unaffordable states, with Hawaii and Oregon rounding out the top five. Los Angeles metro area ranks as the least affordable metro area, while Youngstown and Akron in Ohio have the highest affordability scores.

Market Dynamics Fueling High Costs

Several factors have contributed to the soaring home prices: a shortage of homes for sale due to low inventory and high demand from current homeowners, as well as investors purchasing starter homes. According to data from Redfin, median home prices in Youngstown and Akron remain significantly lower than in major cities like Las Vegas, Boise, and Los Angeles.

Northeast Ohio’s Stable Market

Alison Goebel, executive director of the Greater Ohio Policy Center, attributes Northeast Ohio’s affordability to its stable population, which has helped curb demand and bidding wars.

The Influx into Western States

Montana and Idaho have experienced a surge in homebuyers drawn to their natural beauty and lower cost of living. However, deep-pocketed newcomers often outbid longtime residents, driving up housing costs beyond their reach. Boise, the city of influx, has seen a 40% increase in rents since the pandemic began.

Affordable Housing Challenges in Youngstown

Even in Youngstown, housing can be a challenge for those with low incomes. A forthcoming housing study reveals a shortage of units for households earning less than $25,000 a year. Black and Hispanic residents, as well as older adults, young singles, and families with young children, face disproportionate challenges with housing costs.

A Tale of Two Cities

Jim Johnston, a Youngstown resident, purchased a $250,000 home in 2022, while his former classmates in areas like Montana now pay three times as much for mortgages and child care. Remote work has opened up new possibilities for some, leading them to consider returning to more affordable regions like Youngstown.