In the heart of the Midwest, Ohio remains one of the most accessible states for first-time homebuyers.
Rising home prices and mortgage rates have made ownership tougher nationally, but Ohio still offers a realistic entry point into home ownership—especially for those looking for a starter home.
The biggest driver? You don’t need to have a six-figure salary to afford a starter home. In fact, you don’t even need to make $50,000 a year.
Starter Home Affordability in Ohio
In 2024, the average price of a starter home in Ohio was $164,570. With a 10% down payment and a 7% mortgage rate, the annual income needed to afford this is just $39,416. That places Ohio among the most affordable states for buyers entering the market, well below the national benchmark of $70,164.
Compared to nearby states, Ohio fares exceptionally well: Pennsylvania requires over $44,000, while Michigan is slightly cheaper at $36,116. Ohio’s combination of low prices and modest income requirements helps it stand out—though it earned only a “C+” on the Realtor.com® 2025 housing report card due to limited new home construction, which is crucial to keep up with the increased interest in the area.
Best and Worst Cities in Ohio for Starter Homes
Not all parts of the Buckeye State are equally affordable. Here are some cities offering real value for first-time buyers:
- Cleveland: With a median home price of $267,450 and listings per square foot up 8.5% year-over-year, Cleveland offers strong equity potential in a large metro area.
- Toledo: Starter homes often fall well below $200,000, and the city’s low cost of living adds appeal.
- Akron: Affordable housing options in the $160,000–$220,000 range make this city a reliable choice for new buyers.
In contrast, some areas are significantly pricier:
- Columbus: The median listing price is $377,450, requiring close to a six-figure income for comfortable affordability.
- Dublin and Upper Arlington: These Columbus suburbs often list homes above $500,000, far beyond most starter budgets.
- Mason: Located near Cincinnati, this family-friendly city commands top-dollar prices due to its schools and amenities.
Should You Buy a Starter Home in Ohio Now?
Despite a 71% rise in starter home prices and a 141% increase in monthly mortgage payments over the past five years, Ohio’s housing market remains lucrative. Its relatively low base costs offer buyers a realistic chance to build wealth—especially in revitalizing areas like Cleveland or Dayton.
Limited new construction and a 91.1% new-build premium do pose challenges, signaling tight inventory for affordable homes. Still, for buyers ready to act, the investment potential is there.
What First-Time Buyers in Ohio Should Know
Start by understanding how to qualify for a home loan. Ohio Housing Finance Agency (OHFA) offers down payment assistance and favorable mortgages for first-time homebuyers, including FHA and VA loans.
If you’re serious about buying, review the steps to buying a house and secure pre-approval to strengthen your offer. With its strong affordability and stable markets, Ohio offers one of the clearest paths to homeownership in today’s real estate landscape.
Carol McDaniel is a dedicated and results-driven professional with 5 years of experience and US News. Known for her strong problem-solving skills and collaborative mindset, Carol has built a reputation for delivering high-impact results across diverse teams and projects.
Throughout her career, she has demonstrated expertise in 2 core skills or areas, e.g., client relations and project coordination, and is passionate about continuous learning and meaningful contribution. Carol thrives in dynamic environments and consistently brings professionalism, adaptability, and a focus on growth to every role she takes on.