As clarification just of my own recent home-buying experience, there ARE a number of rundown rowhomes under 300K in the more desirable neighborhoods in the city. But we saw some average homes in those same neighborhoods in the 300-350K range and from what I see those houses are selling. We jumped on the one in this price range that we bought because it was new on the market, is in better than average condition, and we knew it would not last long. It definitely taught us that we should try to take care of our new house to make sure it is in good shape when the time to sell comes! We are a couple with two incomes and we have a traditional mortgage. I really don't know how a single middle income person could ever afford a decent house in the city these days.