Study: Detroit less costly than Hanoi

If the cheap cost of living used to be one of the perks of working overseas, today's corporate middle-manager may find a better deal on a home if she's transferred to Detroit than Hanoi. 

That's according to Coldwell Banker Real Estate's annual Home Price Comparison Index, which compares similar 2,200-square-foot homes in 310 U.S. housing markets, and in 57 markets in 29 countries outside the U.S.

Comparing like homes sets the report apart from others that simply compare median home prices, Coldwell Banker said.

"The four-bedroom, two-and-a-half-bath home is one we deem 'aspirational' and usually purchased by move-up buyers experiencing lifestyle changes," said Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate LLC, in a statement.

Coldwell Banker's aspirational home must also include a family room or its equivalent, a two-car garage, and be located in a market "typical for corporate middle-management transferees."

In 30 percent of markets surveyed, such a home could be had for less than $200,000 -- illustrating the opportunity to take advantage of price declines, low interest rates, and an increased selection of homes, Gillespie said.

The study found eight of the 10 most expensive U.S. housing markets are in California, while a list of the 10 most affordable markets is dominated by communities in "flyover" states like Michigan, Ohio, Texas, Georgia, Wisconsin and Kansas.

Grayling, Mich. -- a city of about 1,800 where the Census Bureau reported the median family income was less than $30,000 -- ranked as the most affordable market in America. Coldwell Banker's "aspirational home" was available in Grayling for $112,675, on average. ...CONTINUED

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