15 Most Affordable Real Estate Markets in 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.

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%

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#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

heatmap for finding affordable real estate markets

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.

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

find affordable real estate with this property finder

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.

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.

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