Australia was recently recognised as having the most unaffordable housing markets in the world. Those struggling to scrape together the thousands required to enter the local property market might consider a cheaper option in the American city of Detroit.
Ranked as the most affordable city in world by the Demograhia International Housing Affordability Survey, Detroit's median home sale price currently sits at $29,200. While many Australians need more money to get a home loan from a bank, Detroit’s average property price is actually on the rise from lows of $17,000 just a couple of years ago.
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But you can buy a property for a lot cheaper than that. A ton cheaper, in fact.
A staggering 47 homes in Detroit are listed for $500 or less on the website realtor.com, with five properties listed for just $1. There are also a range of previously loved homes that can be snapped up in the $50 to $80 price range.
Unfortunately for those trying to sell their homes in Detroit a price tag as low as $1 is failing to attract buyers, with many properties having been on the market for over a year now.
The city known for launching the automobile age has certainly seen better days. Once ranked as the 10th most populated city in the United States, one in five houses now stands empty in Detroit.
Constant foreclosures have destroyed property values, with some homes once worth 100,000 times more than their current selling price. One in three people is unemployed in Detroit and the city’s population continues to decline as people leave to other states in search of opportunity.
Business Insider reported that Detroit’s unpaid property taxes totalled $17.6 million last year, but the city still prefers homes to be occupied rather than have unsold lots.
But as more homes get boarded up and neighbourhoods begin to resemble ghost towns, Detroit is unlikely to lose the tag as the most affordable city in the world any time soon.