After a bargain? Own a three bedroom home in Detroit for JUST $500…as the city is revealed to have the cheapest housing in the U.S
PUBLISHED: 00:05, 25 April 2012 | UPDATED: 00:12, 25 April 2012
In cities such as New York and San Francisco $500 might cover your monthly rent whereas in Detroit the same amount can buy you a detached three bedroom house.
New research has revealed the drastic differences in costs of buying property in different cities in the country – and shown that Michigan’s largest city has the most affordable homes by a considerable margin.
Detroit, famed as a one-time industrial city, has the lowest real estate prices per square foot in the U.S while San Francisco has the highest.
In Detroit one square foot of property will set the buyer back by $62.45 whereas in San Francisco the average cost per square foot is $420.99.
Struggling for decades Michigan’s largest city was hit hard by the recession which caused housing prices to plummet by 54.9 per cent.
America’s fifth largest city just 50 years ago with 1.85 million people but now Detroit ranks as the eleventh with a population of approximately 700,000 people.
However, incredibly cheap housing prices could attract people to the Motor City as a study by Realtor.com showed that of 146 cities only Chicago has more searches for property than Detroit, according to Wall Street 24/7.
The median list price for a property in Detroit was $84,900 – $13,000 less than any other city in America.
In its glory days the Michigan city was the centre of America’s booming car industry but has been stuck in decline for decades.
Unsurprisingly, in the cities with lowest costs per square foot, which also include other former industrial cities Toledo and Wichita, residents have lower average incomes.
The two cities with the next most affordable property were Fort Wayne in Indianapolis and Toledo in Ohio.
Property costs in Fort Wayne are the second lowest at $66.03 per square foot while in Toledo, where poverty and unemployment are incredibly high, they are $67.02.
On the other end of the spectrum the least affordable homes are found in San Francisco where the median list price is a staggering $611,700, after increasing by 3.77 per cent between January and February, the data found.
Property is similarly expensive in the Hawaiian capital of Honolulu where the price per square foot is $381.03 and in Washington, D.C where the figure is £372.11.
Last month foreclosures throughout the country fell to their lowest levels in five years however the number of homes that received foreclosure notices for the first time rose by seven per cent from February.