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Where homebuying is most (and least) affordable

Looking for an affordable home? Here are 5 cities that are good bets, and 5 cities where owning is tough.

Most affordable: Indianapolis

most affordable indianapolis indiana
  • Median home price: $114,000
  • Median income: $66,900
  • Affordability score: 91.7%

The economy in Indianapolis has staged a comeback, as the revival of the Big Three U.S. automakers has helped boost the region's many auto-industry related business.

It's a sprawling city, however, and many working people have moved to the outskirts in search of lower housing costs.

The new developments, built on cheap land in those far-flung neighborhoods, have kept price increases in check. Even as the metro area continues to grow -- the population is up 1% from 2000 to 2010 -- homebuyers can still find inexpensive places to live.

Source: Data is from the National Association of Home Builders and Wells Fargo Bank

The affordability score is the percentage of homes sold in a metro area that a family earning the median income can afford to buy. Index scores are calculated based on income and home price data, as well as current mortgage interest rates.

  @CNNMoney - Last updated August 15 2012 05:25 AM ET

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