On a $50K Salary? Pennsylvania’s Starter Homes Are the Most Affordable in the Northeast

By: Carol McDaniel

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For many aspiring homeowners in Pennsylvania, the biggest hurdle to buying a starter home is no longer just desire—but dollars.

Rising prices and mortgage rates have made it tougher for first-time homebuyers to fund stepping into their own place—unless you know where your salary can stretch the most.

Because the truth is the path to home ownership can be far easier in the Keystone State than most of the states it neighbors, if you’re flexible.

What It Costs To Afford a Starter Home in Pennsylvania

In 2024, the typical starter home in Pennsylvania costs about $186,050. To comfortably afford that purchase with a 10% down payment and a 7% mortgage rate, buyers need to earn roughly $44,561 annually. That figure ranks among the lowest in the Northeast, and since the median middle class income is $73,824, this makes Pennsylvania one of the most affordable states to live for entry-level buyers.

By comparison, New Jersey residents need an income of over $101,000 to buy a starter home, while Maryland’s threshold is nearly $88,326. Upping the anti for Pennsylvania is its proximity to major cities like New York City and Washington, D.C., making some locations ideal for commuters eager for affordability while unafraid to spend a little more time on the bus of train.

Best and Worst Cities in Pennsylvania for Starter Homes

Housing prices vary widely across the state, offering distinct opportunities depending on location.

More affordable cities include:

  • Pittsburgh: With median prices around $243,724 and a vibrant cultural scene, this city remains one of the top metro areas for first-time buyers.
  • Erie: Located along Lake Erie, this city offers homes under $200,000, ideal for buyers looking to have access to nature as well as affordability.
  • Scranton: Starter homes here typically range from $180,000–$220,000, making it a budget-friendly choice with a small-town feel. (Just don’t think it will be like “The Office”. Set your expectations!)
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Less affordable areas include:

  • Philadelphia suburbs such as Lower Merion and Radnor, where median prices often exceed $600,000.
  • State College, home to Penn State, offers homes in the $400,000 range, which would likely be wildly out of reach not for students looking to stay in the area after graduation
  • Know as Main Line communities, places like Wynnewood, Ardmore, Haverford, and Gladwyne are known for luxury living, and very few starter homes under $575,000. (The median price in Gladwyne is actually $3.5 million.)

Is Buying a Starter Home in Pennsylvania a Good Investment?

Starter home prices in Pennsylvania have risen 57% over the past five years, with monthly mortgage payments increasing by 121% due to elevated interest rates. Still, the state remains one of the most accessible places in the Northeast for buyers seeking long-term value. With homes still available under $200,000 in markets like Erie and Scranton, there’s strong potential for price appreciation—particularly for buyers who plan to stay for five years or more.

While Pennsylvania earned a “C” grade on the Realtor.com  housing report card, it fared well on affordability. Its lower housing costs make it an appealing option for first-time homebuyers, though its limited new construction could pose challenges in the future.

For buyers ready to move forward, the key is preparation. Understanding how to qualify for a mortgage, exploring down payment assistance through state programs like the Pennsylvania Housing Finance Agency, and researching the full steps to buying a house are essential. And with many lenders offering mortgages for first-time homebuyers, even those without large savings can find a path to home ownership.

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In a region where affordability is increasingly rare, Pennsylvania offers a refreshing mix of low prices, stable demand, and growth potential—making it one of the best bets for buyers ready to take the first step toward a starter home.

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