Last week we spoke about cottages. We explored the idea of how many people have been buying cottages in affordable areas to tide them over until they can transition to a house in a Canadian urban market. However, it can be difficult to find a cottage in many of the popular lake areas in Canada and still make the economics of this plan worth it. Many cottage prices have soared due to the exodus from cities like Toronto into rural areas, largely driven by the pandemic lifestyle changes. If this has scared you away, you aren’t destined to by a perpetual renter. A possible alternative to these expensive Canadian cottages, one that will still allow the strategy to work, are vacation properties in urban or even suburban areas across North America. If you believe that old saying, “a change is as good as a rest”, a vacation home in an urban environment may be an interesting (and bug free) option for you.&nbsp;We have become well aware that the house prices across several markets in North America have climbed out of reach for many potential buyers. According to the Brampton Guardian, PolicyAdvisor conducted a study to assess the affordability of various cities; they compared the average income of residents to eight different products or services, one being one month’s rent. With New York City ranking as the number one least affordable market, Mississauga was second, Vancouver was third, Toronto was fourth, Hamilton fifth, followed by Los Angeles at sixth. This study ranked cities by the percentage of monthly salary spent on the basic cost of living, searching for the most and least affordable places. It is clear that sitting and waiting is not the best strategy.&nbsp;&nbsp;As we discussed last week, many people have escaped the city for a variety of reasons, a large push being urban house prices, which has then affected the cottage market. However, your relocation or vacation home does not have to be in a rural area; there are still many urban areas across the continent that may be an attractive and interesting alternative. We’ll have some fun throwing out examples. These may or may not be your dream destination, but remember, the strategy is to make sure you are participating in the market. Once that goal has been achieved you will gain the flexibility to make your next move.One possible place is Green Bay, Wisconsin. Home Snacks reports that the average home price is $142,000. This is considerably cheaper than a cottage in Canada. The overall cost of living in Green Bay is reported to be 0.8 times lower than the national average. Median rent cost in the area is $768 a month.&nbsp;Ranked as the most affordable city by Home Snacks is Fort Wayne, Indiana. This city has a median house price of $121,600 and a median rent price of $777. The cost of living in Fort Wayne is also reported to be 0.8% lower than the national average.&nbsp;Next on this list is Cincinnati, Ohio. As of June, 2022, the median sale price for all residential property types, according to RedFin, is $258,500 USD, once again putting the prices of a cottage in Ontario to shame by providing a considerable discount. Move reports that the monthly cost of living in Cincinnati is around $1,226 USD, which places it the lower end of American cities.&nbsp;Another option is El Paso, Texas. As of June, the median price for all home types was $230,000.&nbsp; The average cost of living in El Paso comes out to around $1,267.&nbsp;Edinburg, Texas has a cost of living that is 17.8% below the national average, a median home price of approximately $158,00. Best of all, zero annual inches of snowfall.Lexington, North Carolina has a median house price of $155,000 and average high temperatures of 11 Celsius in January and 32 Celsius in July. You will have to contend with 5” of annual snowfall however.If you are open to more suburban options Arkansas is for you. From Magnolia to Fort Smith to Mountain Home, prices range from $95,000 to $144,000. We were shocked by the variety of things to do. For those who love the outdoors there is everything that you can ask for including golf, hiking, water sports and fishing.Finally, an urban area that may provide you with better relief than an Ontario cottage, one of our favourites, is Memphis, Tennessee. Close to many tourist destinations, Memphis may make for a fun stay. The cost of living per month in Memphis is around $1,267. The median house sale price in Memphis, as of June 2022, is $218,000, beating both Cincinnati and El Paso.&nbsp;As we have discovered, there are more options than we thought for accessing housing affordability in North America. And we only touched the surface here. Perhaps moving to one of these cities is less than an ideal fit for your daily routine, however, as an investment property or a vacation getaway they can provide a great opportunity for you to enter the market and to begin your participation in the capital benefits of home ownership. A move that can take you one step closer to your ultimate goal of ownership in your city of choice.&nbsp;In the end, it can be an adventure that profits both your bank account and adds to your life experiences.

Can't Afford a Cottage in Muskoka? No Problem - Let's Hit the Suburbs in Wisconsin – Real Estate Market Ideas

RIFO explores housing opportunities in rural and suburban North American real estate markets of Wisconsin, North Carolina, Texas, for Canadian buyers in 2022

About RIFO

Business

Investors

News

Contact Us

Contact Us