Best Cities to Buy a House During COVID-19

It's hard to predict real estate market fluctuations even during normal times, but homebuyers are even more unsure if and where they should buy a house during the current pandemic. Purchasing a house can be an excellent financial move even during these uncertain times if you know which factors make a city a good place to buy a home during COVID-19. Learn which areas made our list of the best cities to buy a house in 2020.

If you already live in one of the best cities to buy a home during COVD-19, you're in good shape. Potential homeowners considering a move to a different area need to know that their new location provides the aspects of liveability that are most important to them. These may include affordability, a robust real estate market, or access to green spaces.

First-time homebuyers don't want to end up in a house they can't afford, making it essential for them to create and stay on a budget and, if possible, buy in a city where their dollar stretches further.

While Toledo, Ohio received a perfect score of 100 for affordability, San Jose, California ranked last with a score of zero. Silicon Valley is a notoriously expensive place to buy a home. Top cities for home affordability are dotted throughout the country's eastern and central parts, providing several great options for buyers who want to make their homebuying dollar go the furthest.

A robust real estate market provides homebuyers with ample inventory to find the property that works best with their budget, commuting needs, and lifestyle.

Boise, Idaho tops the list with a perfect score for 2020 when it comes to booming real estate markets, while the greater Miami area scored a zero. If living and working in Idaho don't match personal and professional goals, other top markets such as Fresno, California and the greater Washington D.C. area offer a wealth of homebuying options.

When determining which cities are the best places to buy a home, it's essential to consider what features buyers value most in their everyday living. Some prioritize access to public green spaces over many other factors, especially when living in a bustling city where backyard space comes at a premium.

The Minneapolis-St. Paul, Minnesota metro area ranks at the top of the list for 2020, but homebuyers should consider how much of the year they can comfortably spend time in the city's parks. Rounding out the top five is the Seattle, Washington metro area, which also offers access to green spaces outside the city. Those who prioritize grass and trees should avoid Fort Wayne, Indiana, which received a score of zero.

When buying a home for the first time, several important factors should be kept in mind — especially for buyers looking to move to a new state. Some of these include:

Because tax rates are set by states, looking into what taxes are collected by a state or municipality is crucial. A state may charge income tax but not property tax, for instance. You should also consider other factors such as the cost of a tank of gas or a week's worth of groceries, for example. A cost of living calculator can help buyers anticipate these costs before purchasing a home.

Homebuyers who cannot pay at least 20% of the property's cost toward a down payment must carry private mortgage insurance (PMI). While PMI allows buyers to purchase more expensive homes, it also adds a monthly fee to their mortgage. Buying in a less expensive area can help these buyers put down 20% and avoid this additional cost. Buyers also need to consider current interest rates to see how those will affect their monthly mortgage payment. A mortgage calculator can help you determine how much home you can afford.

Suppose a homebuyer's previous city offered ample public transportation, but their new city doesn't. In that case, factors such as purchasing a car, paying for car insurance, comparing auto insurance rates, and maintaining a vehicle will come into play. Even if a driver has good credit and a solid driving record, the average cost for car insurance totaled $1,379 in 2020.

In addition to securing a job before moving, homebuyers should also consider whether their job is likely to continue existing long-term and whether multiple employers are in the area. They should also look into whether remote work is an option, particularly in light of the ongoing and unpredictable nature of the COVID-19 crisis.

Homebuyers who either already have children or are planning to do so in the future must also consider educational opportunities in their new location. If the public schools in a new city aren't known for providing quality education, individuals may need to consider the costs associated with a private school.

When assessing the best metro areas to buy a home in for 2020, MoneyGeek created an overall score influenced by five key metrics: affordability, real estate market, job market, park access and COVID-19 cases. Each of these five factors was weighted to create an overall score, as indicated below. Additionally, these five metrics were analyzed based on subfactors, each of which was assigned a relative weight indicated below. Both overall scores and individual metrics were calculated based on a 100-point scale.

MoneyGeek combined data from several different sources and chose the final list of 72 metro areas based on the combined overlap across all of these.

Affordability was determined based on median income compared to home prices. Higher incomes compared to housing costs per square foot indicate a more affordable location. Cities with rental prices higher vs. purchasing prices relative to other cities also indicate better overall affordability for homebuyers.

• Median Income vs. Median Sales Price: 50%
• Price per Square Foot: 25%
• Price vs. Rent: 25%

The real estate market was measured based on the number of days homes stayed on the market. Fewer days on the market indicate more active transactions. A more significant share of new listing and pending listing vs. active signify a healthier market. Similarly, price increases highlight a robust and active housing market.

• Days on Market: 60%
• New Listings vs. Active Listings: 10%
• Pending Listings vs. Active Listings: 10%
• Non-New Active Listings vs. Total Listings: 10%
• Percent Listings w/ Price Increase vs. Percent Listings w/ Price Decrease: 10%

Cities with a higher number of jobs per capita ranked higher on this scale. Unemployment statistics are taken from the BLS and represent the number of people who were not employed but actively seeking jobs. Cities with higher rates of unemployment in the wake of COVID-19 scored lower on this scale.

• Per Capita Change in Jobs Since Start of Pandemic: 25%
• Jobs per Capita: 25%
• Unemployment: 25%
• Change in Unemployment Since Start of Pandemic: 25%

This metric assesses the prevalence of, access to and investment in outdoor recreation spaces available in a specific metro area, relative to city population and land area and adjusted to factor in large structures such as airports and railway stations.

• Percent of Residents Within Half-Mile Walk of a Park: 30%
• Population Density: 10%
• Park Area vs. City Area: 10%
• Park Area per Capita: 10%
• Park Investment per Capita: 15%
• Park Amenities: 25%

COVID-19 growth was used as a factor for 2020’s rankings to reflect the importance of health and safety when purchasing a home. This metric was calculated based on growth in cases and deaths per capita from June 9 through September 9, 2020.

• 3-Month COVID Case Growth per Capita: 50%
• 3-Month COVID Death Growth per Capita: 50%

The availability of broadband internet connectivity was used to measure the ability to work or learn from home. This metric was calculated based on how many households in the metro areas studied have broadband internet subscriptions.

• Percentage of Households With Wired Broadband: 75%
• Percentage of Households With Any Broadband: 25%