Finding Affordable Homes Under $300K in U.S. Cities: A Closer Look
As home prices continue to surge across the United States, many buyers are finding themselves priced out of the housing market. However, research from Realtor.com reveals that there are still a number of cities where homes are available for less than $300,000. While homebuyers across the nation grapple with soaring prices and high mortgage rates, certain regions, particularly in the South and Midwest, continue to offer more affordable options for prospective homeowners.
Midwest and South Offer Affordability
Realtor.com’s latest data shows that, despite the national median home price skyrocketing to $437,864 in April—up 1.3% year-over-year—more than 140 U.S. cities still feature homes with a median listing price of $300,000 or less. These affordable homes are predominantly found in the Midwest and South, where the cost of living tends to be lower and housing supply is more plentiful. Cities such as Detroit, St. Louis, Memphis, and Pittsburgh offer some of the most affordable housing options, with prices significantly lower than the national average.
Hannah Jones, a senior economic research analyst at Realtor.com, explains, “The majority of these cities are in the South or Midwest, regions that have generally more space to grow and lower demand than high-density cities like New York or Boston.”
High Demand and Rising Mortgage Rates
Despite these affordable areas, the U.S. housing market is facing significant challenges. According to the National Association of Realtors (NAR), the market urgently needs more listings to meet the current demand. The NAR estimates that the country needs 367,000 more listings priced at or below $170,000, and 416,000 more priced below $255,000, to close the affordability gap.
While some major cities like Philadelphia, Baltimore, and Pittsburgh offer homes under $300,000, the rising mortgage rates and increasing home values, particularly during the pandemic, have made it difficult for many buyers to take advantage of these affordable options. For instance, in Detroit, the median listing price for a home is just $109,000, and the typical monthly mortgage payment, including taxes and insurance, would be around $762—still a manageable option for many. However, the affordability of these homes may not be as accessible to local buyers as it may seem, given the pressure from rising costs and limited supply.
Realtor.com’s report underscores the stark contrast between cities where affordable housing is still available and regions where the market remains out of reach for most residents. While the East Coast, particularly the Northeast, continues to experience tight housing inventory, the South and Midwest still provide an opportunity for homebuyers seeking affordable homes with modern amenities.
