By Michael Bain
As Dayton’s population has decreased 1 percent in the past decade, home prices have significantly dropped, leaving a high supply of homes on the market.
If you’re searching for a new house, here’s a look at what Dayton’s median income can afford: With an annual median income at a solid $63,300, the Dayton homebuyer can spend roughly $1,582, or 30 percent of their monthly income, on their mortgage payment.
Though down payments and mortgage rates vary depending on one’s particular credit score and income, for simplicity’s sake, we’ll assume a fairly good credit score in the 720-740 range with a median income.
Given a 30-year fixed mortgage, this will generate a 17-percent down payment and a 4.23 percent annual percentage rate (APR). We will also factor in Dayton’s modest average homeowners insurance premium at $54 a month, well below the national average of $80 a month. According to the National Association of Home Builders, Dayton’s median home price is also nearly half the national average at $81,000.
So, with a median income above the national average, as well as a median home price well below the national average, the Dayton homebuyer can afford some highly luxurious new and pre-owned homes at an astounding value in the current market. For instance, buyers could purchase a renovated three-bed, three-bath, 2,064 square foot single family home for roughly $250,000. With an estimated mortgage of $930 a month, the home is a great option for the Dayton homebuyer.
If buyers are looking to build a new house, they can find an affordable four-bedroom, 2.5 bath single-family home with 3,317 square feet. The Nicholas Plan at Carriage Trails - The Estates by M/I Homes, for example is a great option for the median income Dayton homebuyer at $245,995.
Nestled in the charming Carriage Trails - The Estates new-home community, residents can enjoy 700 acres of natural scenery within the community, as well as more than 900 acres of walking, hiking and horseback riding trails.
Carriage Trails residents enjoy the high-rated Bethel Local School District, as well as an upscale shopping outlet, a brand new Kroger Aquatic Center and a local YMCA, all within walking distance. The community also offers easy access to I-75, I-70 and the Dayton Airport. With an estimated mortgage of $1,215, the Nichols Plan is a great option for those looking for a newly built home in a picturesque community.
Though Dayton has experienced a slight decline in population in the past decade, with major companies like NCR Corp. moving and a few others cutting staff, the city remains a promising place to live and work. With a solid median income well above the national average and one of the most affordable housing markets, the Dayton homebuyer has more options and buying power than most homebuyers in other parts of the country. The city has also seen unemployment rates fall 1.2 percentage points over the past year to 8.2 percent.
Whether looking to buy a new home or a resale home, Dayton homebuyers have some great options. If you would like to explore more new home options in the Dayton area, check out New Home Source .
Michael Bain is a former content intern with Builders Digital Experience.
By Michael Bain