LOUISVILLE, Ky. — With the recent drop in mortgage rates, more Americans are ready to make a leap into homeownership and some major cities may have more affordable home options than others.
A new study found that two cities in Kentucky have some of the most affordable homes in America.
Both Louisville and Lexington made Forbes Advisor's top 10 list of best U.S. cities to buy an affordable home. Lexington ranks eighth and Louisville ranks as the ninth best city to buy an affordable home.
Forbes Advisor analyzed the 100 largest cities in the U.S. across several metrics, including median home price, property tax against home value, crime rate, entertainment options, and how many homes there are for sale.
Known for its historic bourbon distilleries and expansive horse country, Lexington offers a unique combination of affordability and lifestyle for potential homeowners.
Lexington ranked 13th-lowest for median homeowner costs as a percentage of median household income (16.40%). The city ranked 33rd-lowest for median home sale price. Prospective buyers will pay about $302,667 for a home in this city.
Education is another selling point if you’re raising a family or planning one in Lexington. The city ranked 29th highest for school quality.
The “Horse Capital of the World” also offers a vibrant entertainment scene, ranking 27th highest for entertainment establishments per capita.
Just over an hour away, Louisville also ranked among the best cities for home buying.
Louisville is ranked 21st-lowest for median home sale price. Home buyers can expect to pay about $241,567 for a home in this city. It also ranked 24th-lowest for median homeowner costs as a percentage of median household income (17.10%).
On average, homeowners in Louisville only needed to put 17.1% of their household income toward homeownership expenses, allowing locals to enjoy the various entertainment options the Derby City has to offer.
Louisville is known for attractions such as Churchill Downs, the Muhammed Ali Center, and the Louisville Slugger Museum and Factory. Louisville also has a budding food scene with several new eateries opening up every year.
Forbes named Pittsburgh, Penn. the best U.S. city to buy an affordable home. In terms of home prices, Pittsburgh ranked 19th lowest, with median-priced homes running around $236,067, making the Steel City an appealing option for home shoppers on a tight budget.
Two Indiana cities also made the top ten most affordable homes list: Fort Wayne and Indianapolis.
The least affordable city for buying a house was Oakland, Calif., according to the Forbes Advisor study. Also towards the bottom of the list were California cities San Francisco, San Bernadino, Riverside and Anaheim.
To see the full Forbes Advisor study on the best and worst cities in the U.S. to buy an affordable home, click here.