Advertisement
Money

Moving to a New City Can Make It Cheaper to Buy a Home

Be sure to crunch the numbers before you make the leap.

by FREE Staff
May 14 2018, 6:27pm

If you're ready to buy a house but can't afford one where you live now, you might consider moving to another city where home prices are lower. That's what Liz Bueno and Theron Worth Chung did when they relocated from Queens, New York to Colorado Springs, Colorado, where the current $285,000 median listing price for a home is less than half as expensive as it would have been previously.

"What we could have afforded in New York would have probably been a one or two bedroom apartment," Bueno says in "Great Escape," the final episode of Real State. Instead, the birth doula and her partner, a toxicologist, were able to afford a 2,700 square foot fixer upper in the hot housing market of Colorado Springs.

To figure out if moving to a new city could help you afford a home, consider median home prices, cost of living, and what your income will be if you move to a new area, as salaries in less expensive housing markets tend to be lower as well. As a rule of thumb, your housing costs should be no more than 30 percent of your income, regardless of whether you're renting or buying.