In the current market, finding affordable housing can seem nearly impossible, but if you know where to look, you can find more affordable housing.
“I don’t think there are any places that are going to see huge price cuts,” Evan Weiloji, a data journalist at Realtor.com, told Business Insider. “A lot of this list has to do with how affordable some of these places are to begin with.”
The Midwest appears frequently on the list because it’s traditionally the least expensive part of the country. No West Coast cities made the top 10, but that’s simply because there aren’t any cheap areas in the West, Weiloji said.
The $200,000 range has historically been the sweet spot for many people looking to buy their first home, but home prices haven’t been hovering around that price range for some time.
According to data from the National Association of Realtors, the median existing home price was $274,500 in December 2019. As of April 2024, that figure is $407,600.
“Neighborhoods that were once popular for downsizing are now out of reach for many,” Hannah Jones, senior economic analyst at Realtor.com, told Realtor. “In Florida markets like Lauderdale Lakes, affordable condos are proliferating, making them a viable option for those looking to downsize without spending a fortune.”
The Fort Lauderdale suburbs of Lauderdale Lakes and Lauderhill are on the list, and Wyloj said the housing supply in those areas is almost entirely condos.
It’s not just first-time homebuyers who are looking for cheaper areas: Small and private investors are also focusing on more affordable areas, many of which have seen population growth surge between 2010 and 2020, leading to increased rental demand.
Realtor.com combed the U.S. to find the most affordable cities for housing, ranking them by the number of listings under $200,000, excluding land lots, mobile homes and cities with fewer than 100 listings.
