Buying a home with a low price tag may sound like a dream, but a new report suggests that bargain-priced houses don’t always translate into affordable living.
A June 2026 study from cabinet manufacturer Highland Cabinetry found that some of America’s cheapest housing markets come with surprisingly high ongoing ownership costs. The report compared 26 U.S. cities to determine where inexpensive home prices can create the biggest illusion of affordability once property taxes, insurance, maintenance, and everyday living expenses are factored in.
Why Purchase Price Doesn’t Tell the Whole Story
The researchers analyzed average home prices alongside annual ownership expenses—including property taxes, homeowners insurance, maintenance, and general living costs—and compared those figures with each city’s median household income.
The result? In several cities, homeowners spend close to 40% of their annual income just to keep a roof over their heads and manage everyday expenses.
The Cities Where “Affordable” May Not Mean Affordable
1. Decatur, Illinois
At first glance, Decatur appears to be one of the country’s best housing bargains, with the average home selling for approximately $105,000.
However, annual ownership and living expenses total nearly $22,000 while the average salary is around $54,000. That means nearly 40% of a homeowner’s yearly income goes toward housing-related costs and everyday necessities.
2. Memphis, Tennessee
With average home prices under $150,000, Memphis attracts buyers looking for affordable real estate.
But homeowners spend roughly $17,500 annually on ownership and living expenses while earning an average salary of about $44,000. Those costs consume nearly two-fifths of annual income, leaving less financial flexibility than buyers may expect.
3. Cleveland, Ohio
Cleveland’s average home price of approximately $118,000 makes it another attractive option for budget-conscious buyers.
Still, yearly expenses of about $17,000 against an average salary of $42,000 mean homeowners devote around 42% of their income to housing and daily living costs.
4. Baltimore, Maryland
Although average home prices climb to around $192,000, Baltimore still ranks among the cities where ongoing expenses create affordability challenges.
Homeowners spend roughly $20,000 per year on taxes, insurance, maintenance, and living expenses—about 40% of the average annual paycheck.
5. Detroit, Michigan
Detroit offers the lowest average home price among the top five at just over $76,000.
Despite the remarkably low purchase price, annual ownership expenses approach $17,000, while the median salary sits around $41,000. As a result, homeowners spend roughly 42% of their yearly income on housing and basic living expenses.
Don’t Let the Listing Price Fool You
According to Highland Cabinetry, buyers often focus heavily on the purchase price while overlooking the long-term financial commitment of homeownership.
Property taxes, insurance premiums, maintenance, utilities, and everyday living costs can significantly impact a household budget long after closing day.
What Homebuyers Should Consider
If you’re shopping for a home, don’t base your decision solely on the asking price. Before making an offer, be sure to evaluate:
- Annual property taxes
- Homeowners insurance costs
- Expected maintenance and repairs
- Utility expenses
- Overall cost of living
- Your income compared to ongoing ownership costs
A higher-priced home in a lower-cost market may actually be easier to afford over time than a bargain home with expensive monthly carrying costs.
For budget-conscious buyers, looking beyond the sticker price could save thousands of dollars—and plenty of financial stress—in the years ahead.
