10 Cities Where Student Loan Borrowers Can Afford a House

Vance Cariaga

22 June 2024 at 9:00 am·3-min read

Student loan debt represents a major monthly expense for millions of Americans – and one they could spend decades paying off. Research from the Education Data Initiative found that the average student loan payment in the United States is $503 monthly. As of March 2024, the average total student loan debt for federal loans was about $37,850, according to U.S. Department of Education data cited by the Best Colleges website.

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Student loans are such a big budget item that they make it difficult for many Americans to afford a home. That’s especially true now, with average home prices still hovering near record highs and mortgage rates higher than a few years ago.

Most house hunters face difficulty finding an affordable home in the current market. The challenge is even greater for student loan borrowers stuck with heavy debt. A lot depends on the amount of student debt you have, and that can vary widely depending on where you live.

For example, the average student loan debt for borrowers in Washington, D.C., is $54,150, according to Best Colleges. In contrast, the average debt in North Dakota is $29,310.

The most important consideration if you have a lot of student loan debt is the cost of buying and owning a home. You not only need to consider the size of the mortgage payment, but also how much you have to pay for other costs such as real estate taxes and monthly utility bills.

A recent report from Forbes analyzed those and other metrics to determine the most affordable cities to buy a home in 2024. Based on that report, these are 10 cities where student loan borrowers can afford a house.

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Detroit, Michigan

Median home listing price in 2023: $270,000
Median real estate taxes: $1,268
Monthly utilities: $290

Cleveland, Ohio

Median home listing price in 2023: $248,480
Median annual real estate taxes: $1,508
Monthly utilities: $187

Toledo, Ohio

Median home listing price in 2023: $239,900
Median annual real estate taxes: $1,541
Monthly utilities: $201

Memphis, Tennessee

Median home listing price in 2023: $327,275
Median annual real estate taxes: $1,658
Monthly utilities: $158

Baltimore, Maryland

Median home listing price in 2023: $365,875
Median annual real estate taxes: $2,799
Monthly utilities: $241

Rochester, New York

Median home listing price in 2023: $274,338
Median annual real estate taxes: $2,625
Monthly utilities: $197

Milwaukee, Wisconsin

Median home listing price in 2023: $239,900
Median annual real estate taxes: $3,122
Monthly utilities: $202

Montgomery, Alabama

Median home listing price in 2023: $299,224
Median annual real estate taxes: $512
Monthly utilities: $238

Try This: Barbara Corcoran: 3 Cities To Invest In Real Estate Now Before Prices Skyrocket

Buffalo, New York

Median home listing price in 2023: $277,697
Median annual real estate taxes: $1,601
Monthly utilities: $194

Kansas City, Kansas

Median home listing price in 2023: $453,363
Median annual real estate taxes: $1,663
Monthly utilities: $271

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This article originally appeared on GOBankingRates.com: 10 Cities Where Student Loan Borrowers Can Afford a House

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