NEW YORK: Smartassets.com the financial resources website says “whether you’re a first-time homebuyer or a grizzled veteran of the home-buying experience, you want to make sure you are taking out a mortgage you can afford.”
To that end the company says it “analyzed data to find the most undervalued cities in the U.S in 2018.”
New Haven was chosen as the seventh most undervalued city in the country.
The company reviewed data for 200 cities across nine metrics, creating “a model using data on unemployment rates, price per square foot, high school graduation rates, percent of residents with a college degree, crime rate, entertainment establishment density, average days with precipitation, average number of days with bad weather and walk score.”
This is the third annual study on the most undervalued cities in America. Check out the 2017 version here.
Pittsburgh tops the list as the most undervalued city in the country, . according to Zillow data, the average home in Pittsburgh is worth nearly $91 per square foot. However, smartassets’ model suggests that Pittsburgh homes should be worth $266 per square foot.
One reason the company says Pittsburgh is valued so highly is its educated population. The city has the 50th-highest high school graduation rate and the 35th-highest percentage of residents with a bachelor’s degree out of the 200 cities in the study. Overall their model suggests that living in Pittsburgh yields an estimated $175 per square foot in surplus value.
New Haven moved up from outside the top 10 last year to inside the top 10 this year. The city improved its projected value from $227 per square foot last year to $265 per square foot this year. At the same time the actual cost per square foot, according to Zillow, stayed almost the same. That means the estimated savings from buying a home in New Haven jumped from $111 to $150.
The website added a subjective statement about New Haven as well “if you are the sort of person who likes dining and entertainment establishments and walkability, New Haven is a good place for you. This city ranks in the top 10 for both of those metrics.”
Details on the study, including full methodology and rankings, can be found here: https://smartasset.com/mortgage/most-undervalued-cities-in-america-2018.