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
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Median home listing price in 2023: $270,000
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Median real estate taxes: $1,268
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Monthly utilities: $290
Cleveland, Ohio
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Median home listing price in 2023: $248,480
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Median annual real estate taxes: $1,508
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Monthly utilities: $187
Toledo, Ohio
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Median home listing price in 2023: $239,900
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Median annual real estate taxes: $1,541
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Monthly utilities: $201
Memphis, Tennessee
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Median home listing price in 2023: $327,275
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Median annual real estate taxes: $1,658
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Monthly utilities: $158
Baltimore, Maryland
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Median home listing price in 2023: $365,875
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Median annual real estate taxes: $2,799
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Monthly utilities: $241
Rochester, New York
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Median home listing price in 2023: $274,338
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Median annual real estate taxes: $2,625
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Monthly utilities: $197
Milwaukee, Wisconsin
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Median home listing price in 2023: $239,900
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Median annual real estate taxes: $3,122
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Monthly utilities: $202
Montgomery, Alabama
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Median home listing price in 2023: $299,224
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Median annual real estate taxes: $512
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Monthly utilities: $238
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Buffalo, New York
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Median home listing price in 2023: $277,697
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Median annual real estate taxes: $1,601
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Monthly utilities: $194
Kansas City, Kansas
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Median home listing price in 2023: $453,363
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Median annual real estate taxes: $1,663
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Monthly utilities: $271
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This article originally appeared on GOBankingRates.com: 10 Cities Where Student Loan Borrowers Can Afford a House
