Affordable Housing: The Five U.S. Cities Where Homes Are Still Priced Below $300K

Photo byGetty Images; Realtor.com

In a housing market that has long been characterized by soaring prices and high mortgage rates—peaking nearly 8% last October—many aspiring homeowners have felt the pinch. However, a recent report from Realtor.com® reveals surprising pockets of affordability across the country, offering hope to those still dreaming of homeownership.

A Shift in the Housing Landscape

As mortgage rates stabilize around 6.32% for a 30-year fixed loan and the national median home price hovers at $425,000, five cities stand out for their continued accessibility. These metros have median home prices below $300,000, making them noteworthy options for budget-conscious buyers.

The Affordable Front-Runners

1. Rochester, NY: With a median home list price of $282,500, Rochester ranks No. 18 in the Realtor.com September Hottest Housing Markets. Although prices have risen 13% year over year, they remain significantly lower than the national average. The rise in prices reflects a tightening market, driven by a shortage of available homes and a decline in new construction.James Yockel, CEO of the Greater Rochester Association of Realtors, emphasizes that this situation is a classic case of supply and demand. "We have seen consistent under-building for the last 20 years," he notes, pointing to a dramatic drop in new building permits—from 1,600 annually in the early 2000s to just 400 today.
2. Pittsburgh, PA: This city’s median list price is comfortably below $300,000, making it a magnet for homebuyers. Listings here are viewed 1.5 times more frequently than the U.S. average, signaling strong interest.
3. Detroit, MI: With a median home price also below $300,000, Detroit remains an attractive option for potential buyers. The city's listings are viewed 1.2 times more than the national average, showcasing a renewed interest in its real estate market.
4. Cleveland, OH: Cleveland offers affordable housing solutions amid a broader national trend of rising prices, making it a viable choice for those seeking budget-friendly options.
5. Buffalo, NY: Another New York city with affordable homes, Buffalo provides opportunities for first-time buyers looking to enter the housing market without breaking the bank.

Why Are These Cities Still Affordable?

While rising prices are a challenge in many regions, Rochester's unique economic landscape plays a significant role in its affordability. New York’s high tax burden means that a larger portion of household budgets goes toward taxes, leaving less for housing. This dynamic moderates price increases, allowing for more accessible homeownership opportunities.

As the national housing market continues to evolve, these five cities offer a glimmer of hope for those looking to invest in a home without financial strain. If you’ve been dreaming of owning a home, these affordable metros could be the answer you’ve been seeking.