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34 THE FOUR U.S. CITIES WHERE PAYCHECKS ARE STRETCHING FURTHEST ose looking to get the biggest bang for their bucks would be most likely to find it west of the Mississippi, according to a new joint report by Trulia and Indeed. e firms looked at which American cities stretch paychecks the furthest and found four cities topping the list, in the South, Southwest, and West. Birmingham, Alabama, tops the list of cities where paychecks meet opportunity. e iron-and-steel town dubbed the "Pittsburgh of the South" has an average salary of about $77,000 that, adjusted for cost of living, spends like $86,000. According to Zillow data, the median home value in Birmingham is $64,600 and home values in the city have increased 6.6 percent over the past year. "Birmingham's growth doesn't match the pace of Southern economic powerhouses like Atlanta, Raleigh, and Nashville," the report stated, "but it is Alabama's largest city and a bright spot in the state's economy, accounting for about 30 percent of its domestic product." e Irondale neighborhood is a major affordability boon to the region, Trulia reported. Median home prices in the 35210 zip code are, on average, $147,000, about $50,000 below more metro-centered homes. Trulia found almost identical dollar- stretching numbers in St. Louis, Missouri, and El Paso, Texas. Both cities report a median income around $76,000 that stretches to about $84,000 when adjusted for cost of living. Dollars in St. Louis, according to Trulia, stretch further than those in Chicago and Detroit, the latter of which is considered a highly affordable metro. e city has an economy running on manufacturing, construction, leisure, and hospitality. Still, dollars stretch further in the St. Louis suburb of Bethalto, which is actually in Illinois. Bethalto is less than 35 miles from downtown St. Louis, and homes there sell for a median price of $114,000. Zillow shows a current median home value in Saint Louis proper at $128,600, up 9.1 percent year-over-year. Over in far-west Texas, El Paso might be the forgotten metro of the Lone Star State, but it's the most affordable city in Texas. e same salary spends about $9,000 better in El Paso than in Dallas, even though home values in the city's most desired suburb, Upper Valley, are significant. Median homes in Upper Valley sell for about $460,000. Per Zillow, the median El Paso home value is $115,700, up 1.7 percent over the past year. e West Coast's lone entry to value-friendly cities is Fresno, California, where an $82,000 average salary stretches to about $84,000. Fresno is part of California's software hub, but the region is still big in farming and leisure, given its proximity to three national parks. According to Trulia, most Fresno workers prefer to live in Woodward Park, 11 miles outside of town. e median home price in Woodward Park is about $342,000, roughly $100,000 more than living in the city itself. Within the city, the gulf between average salary and median home price is among the most favorable in California's urban areas. Zillow reports the median home value in Fresno is at $228,700, with a year-over-year increase of 10.5 percent. SINGLE-FAMILY RENTALS ON THE RISE Single-family rentals are on the rise, according to research from Zillow. Single- family rentals are climbing at a rate of 2.1 percent year-over-year, compared to the 1.5 percent growth of multifamily rentals. Additionally, Zillow's Rent Index shows a higher price point on average of multifamily rentals compared to single-family rentals, as the median multifamily rental sits at $1,563, compared to the single-family median price of $1,420. However, with more renters looking to single-family options, the median rental price of these homes is sure to go up. Around 45 percent of renters have considered single-family rentals over multifamily apartments, according to Zillow's research. However, the disparity in price may be due to the fact that most multifamily rental units are in urban areas, where rent tends to be significantly higher than other areas. Urban areas are hot spots for rentals. Zillow notes that 57.1 percent of urban rental listings on Zillow in February were for multifamily units, and 36.8 percent of multifamily listings were in urban ZIP codes. e break from multifamily to single-family could be due to shifting needs among renters. Previous Zillow research indicated that, next to the price, having extra room is the most important factor renters consider. Apartments offer limited amounts of space, but rental houses offer the additional space that 60 percent of renters look for, without being too expensive. Renters with children will also look for more bathrooms and outdoor space, which is more likely to be found in a house rather than an apartment. Single-family rentals are less expensive overall, but out of a list of the 100 most populated metro areas in the U.S., Zillow found that the lowest median single-family rental prices can be found in Youngstown, Ohio ($828 a month); Augusta, Georgia, at $946; Wichita, Kansa ($966); El Paso, Texas ($1,002); and McAllen, Texas ($1,013). With home prices continuing to skyrocket in many markets, and inventory shortages plaguing many of those same areas, single- family rental homes are primed for continued growth...and bigger opportunities for investors in this sector.

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