Top Locations 15 Most Affordable Real Estate Markets in 2021 by Alex Karani February 4, 2021January 29, 2021 by Alex Karani February 4, 2021January 29, 2021 2020 was indeed a crazy year as a result of the aggravated spread of the COVID-19 pandemic. The pandemic hurt all sectors of the economy including parts of the real estate market. However, despite the economic uncertainty, home prices never plunged the way the stock market did. In most real estate markets in the US, home prices continued to rise, even in areas once considered affordable real estate markets. This can be attributed to the fact that the pandemic really affected homebuilders’ capacity to fill the housing supply. The inventory of houses was left at historic lows. Amid COVID-19, mortgage rates also recorded historic lows which caused intense demand and pushed real estate prices to levels that made it difficult for beginner real estate investors to buy an investment property. According to Realtor.com, the national median list price is currently $340,000, which is a YoY growth of 13%. With the optimism of widespread access to COVID-19 vaccines, the housing market forecast 2021 points to it being a seller’s market. While housing inventory is expected to make a gradual comeback, mortgage rates and home prices will increase, and demand is expected to remain high. This means that entering the real estate market in 2021 is likely to be a challenge for those with a modest income and savings. However, just because real estate prices are high, doesn’t mean you should give up on your dreams of owning a rental property in 2021 or overpay for an investment property that won’t have a good return on investment. If you are looking to invest in real estate in 2021, you can still find affordable real estate if you know where to look. In this article, we’ll look at some of the most affordable real estate markets in the US according to Mashvisor’s data that you should consider exploring in 2021. Related: The Future of Real Estate Investing After the Pandemic The 15 Most Affordable Real Estate Markets in 2021 Keep in mind that, to find the best places to invest in real estate, you need to consider more than just affordability. Not every affordable real estate market will be profitable. Therefore, you need to conduct a thorough real estate market analysis to determine the most affordable real estate markets that are also performing well. To help you with your analysis, we’ve included key metrics like monthly rental income and cash on cash return for each housing market listed below. #1. Flint, MI Median Property Price: $114,438 Price per Square Foot: $83 Price to Rent Ratio: 15 Monthly Traditional Rental Income: $626 Traditional Cash on Cash Return: 3.1% #2. Redford, MI Median Property Price: $126,729 Price per Square Foot: $111 Price to Rent Ratio: 12 Monthly Traditional Rental Income: $917 Traditional Cash on Cash Return: 4.4% #3. Scranton, PA Median Property Price: $134,230 Price per Square Foot: $70 Price to Rent Ratio: 12 Monthly Traditional Rental Income: $961 Traditional Cash on Cash Return: 4.0% #4. Youngstown, OH Median Property Price: $135,357 Price per Square Foot: $82 Price to Rent Ratio: 14% Monthly Traditional Rental Income: $800 Traditional Cash on Cash Return: 4.2% #5. Saginaw, MI Median Property Price: $150,689 Price per Square Foot: $87 Price to Rent Ratio: 18 Monthly Traditional Rental Income: $690 Traditional Cash on Cash Return: 2.5% #6. Springfield, IL Median Property Price: $157,283 Price per Square Foot: $83 Price to Rent Ratio: 13 Monthly Traditional Rental Income: $1,022 Traditional Cash on Cash Return: 4.2% #7. Akron, OH Median Property Price: $157,482 Price per Square Foot: $97 Price to Rent Ratio: 16 Monthly Traditional Rental Income: $807 Traditional Cash on Cash Return: 3.6% Search for My Investment Property #8. Peoria, IL Median Property Price: $160,255 Price per Square Foot: $78 Price to Rent Ratio: 14 Monthly Traditional Rental Income: $923 Traditional Cash on Cash Return: 2.5% #9. Waterbury, CT Median Property Price: $173,152 Price per Square Foot: $116 Price to Rent Ratio: 12 Monthly Traditional Rental Income: $1,237 Traditional Cash on Cash Return: 3.5% #10. Elkhart, IN Median Property Price: $177,278 Price per Square Foot: $101 Price to Rent Ratio: 16 Monthly Traditional Rental Income: $940 Traditional Cash on Cash Return: 4.2% #11. Independence, MO Median Property Price: $180,962 Price per Square Foot: $108 Price to Rent Ratio: 14 Monthly Traditional Rental Income: $1,060 Traditional Cash on Cash Return: 4.7% #12. Eagle Pass, TX Median Property Price: $183,622 Price per Square Foot: $119 Price to Rent Ratio: 14 Monthly Traditional Rental Income: $1,090 Traditional Cash on Cash Return: 3.6% #13. Muncie, IN Median Property Price: $184,834 Price per Square Foot: $91 Price to Rent Ratio: 14 Monthly Traditional Rental Income: $1,122 Traditional Cash on Cash Return: 5.4% #14. Canton, OH Median Property Price: $187,527 Price per Square Foot: $105 Price to Rent Ratio: 19 Monthly Traditional Rental Income: $828 Traditional Cash on Cash Return: 2.6% #15. Greenacres, FL Median Property Price: $190,241 Price per Square Foot: $160 Price to Rent Ratio: 12 Monthly Traditional Rental Income: $1,384 Traditional Cash on Cash Return: 4.2% Using Mashvisor’s Tools to Find Cheap and Profitable Properties You now know where to find affordable real estate in the US. But do you know how to find affordable properties that are also profitable? That’s where Mashvisor comes in. Here are the real estate investment tools that will help you find exactly what you’re looking for: 1. Real Estate Heatmap After identifying an affordable housing market to focus on, you can narrow down your search further by using Mashvisor’s real estate heatmap to conduct a neighborhood analysis. This tool uses color codes to show how different neighborhoods are performing based on the following metrics: Listing Price Airbnb Rental Income Traditional Rental Income Airbnb Occupancy Rate Airbnb Cash on Cash Return Traditional Cash on Cash Return Use Mashvisor’s real estate heatmap to find affordable neighborhoods. With these filters, you can find the cheapest places to buy a house that are also profitable. The Listing Price filter will allow you to see neighborhoods with more affordable real estate compared to the city’s median price. These neighborhoods will be marked in red. The most expensive neighborhoods will be marked in green. Related: Heatmap Analysis: The Secret to Successful Real Estate Investing 2. Property Finder Once you decide on the best neighborhood to invest in, you can now begin your investment property search. Mashvisor’s Property Finder is the tool to use at this stage. It uses predictive analytics to locate profitable traditional and Airbnb investment properties for sale that meet your criteria in a matter of minutes. The search tool supports a number of interactive filters such as: Location Miles from location Budget Rental strategy Property type Number of bedrooms Number of bathrooms Mashvisor’s rental property finder can help you identify properties for sale in your budget in seconds. This tool will help you find investment properties for sale that meet your criteria and have high cash on cash return. The Budget filter allows you to set a price range you are comfortable with. Related: Rental Property Finder: A Revolutionary Tool for Investing in Real Estate 3. Investment Property Calculator Last but not least, you need to do an investment property analysis on the cheap real estate you’ve found to ensure it provides a good return on investment. The tool that will help you do this is Mashvisor’s investment property calculator. It provides key metrics that will help you determine the most profitable investment property. The 3 most important numbers to focus on are: Cash flow Cap rate Cash on cash return Use Mashvisor’s investment property calculator to analyze affordable real estate. The Bottom Line Despite the effects of the COVID-19 pandemic last year, home prices in major housing markets in the US continued to rise and are still expected to increase in 2021. With housing supply far below the rising demand, the best bet for beginner real estate investors in 2021 would be to locate the most affordable real estate in the US. This guide has listed for you the most affordable real estate markets you can focus on. However, to find cheap investment property for sale that is also profitable, you need to conduct a thorough market analysis and investment property analysis. Fortunately, Mashvisor’s tools make it easier for any investor to find affordable real estate investments with a good return on investment in a matter of minutes. Start out your 7-day free trial with Mashvisor now. Start Your Investment Property Search! START FREE TRIAL Affordable MarketsAkron OHInvestor ToolsMichiganOhio 0 FacebookTwitterGoogle +PinterestLinkedin Alex Karani Alex is an entrepreneur and an experienced content writer focused on personal finance, business, and investing. For over six years, he has contributed to a number of publications, both online and print. When he's not writing or working, Alex enjoys reading, traveling, and the outdoors. 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