Low-income homebuyers have the best shot in this Southern city

Homeownership within reach

New data shows that Tampa, Florida, offers low-income homebuyers the best shot at buying a house. The Southern city claims the nation’s smallest gap in homeownership between low-income families and the general population.

Tampa opens the door

According to data from Redfin, 54 percent of Tampa’s low-income families own a home, while 69 percent of the larger population do. That’s the smallest gap in homeownership rates in the country.

The city’s affordable home prices may have something to do with it. The median sales price in Tampa is just $225,000 — a full $50K lower than the national average. Many homes even fall under $200,000, according to one Redfin agent.

“Tampa is unique in that many of its high-end neighborhoods directly border more affordable areas that are approachable for people earning lower incomes. A good portion of homes in the affordable neighborhoods still have a lot of properties selling for less than $200,000,” said agent Brian Walsh. “Some of those areas are close to the beach and downtown, but for people willing to spend a bit of time commuting to work, truly affordable suburban life is approachable for a large group of working families.”

Home price growth expected to slow even more in 2019, experts say

High homeownership rates

The next smallest gap in homeownership rates is seen in San Jose, California — but for very different reasons. With a median home price of $1.05 million, it claims one of the most expensive housing markets in the nation.

As Redfin agent Kalena Masching explains, “San Jose’s overall homeownership rate is low due to a lack of affordability throughout the metro area. Prices are so high that homes are often unaffordable even for relatively high income earners, making it so that a software developer is not much more likely than someone in a middle-paying profession to be a homeowner.”

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Other cities with small gaps between low-income and general homeownership rates were Riverside and San Francisco, California; Phoenix; Miami; Charlotte, North Carolina; Minneapolis; Orlando, Florida; and Nashville.

Get today’s mortgage rates

Are you considering buying a home in one of these cities? Then shop around and see what mortgage rates you qualify for today.