Home costs are still rising, but ownership is still out of reach for these metros
Homes are more expensive than ever. Chronic housing shortages and high mortgage rates push monthly costs to a record $2,819, renting cheaper than buying in all major US metropolitan cities. Home prices have also risen for almost the second year in a row, 92% higher than they were 10 years ago ($225,000 vs. $431,000 in 2015).
These costs had consequences. For example, more people are getting prices from ownership, and 40% of tenants believe they don’t own a home. A tumultuous economy, the fear of inflation and the recession — is an expert worried about a further decline in affordable prices.
Still, there is hope. Almost 20 of the largest metros in the United States can buy a home for less than $300,000. Many of them are even more affordable for local median income residents.
To help buyers looking for affordable homes, we rank 10 meters, from the lowest to the most expensive, where purchases are still out of reach. It also shows how their home prices have changed over the past decade.
10 Metros that can still buy a home for less than $300,000
1. Detroit, Michigan
Median selling price: $180,950 2015 Median selling price: $70,000 10 year price increase: +158.5%
Detroit tops the list as the best place to buy a home for under $300,000. Once known as Motor City, it is now a place of creativity, community and grit. Cars are still part of that story, as are coffee shops, street art and people working on revitalizing their neighborhoods. The city is invested in the future.
Importantly, Detroit prices have been rising sharply over the past decade, up nearly 30% since March 2020. The surge is driven by slower new constructions, exacerbated by limited inventory, strong demand and numerous abandoned homes. Still, with its growth, Detroit is the country’s most affordable metropolitan area, offering rare opportunities to buy a home at an accessible price.
Detroit Home Sale | Detroit Home House | Detroit Apartments for Rental
2. Cleveland, Ohio
Median selling price: 227,000 $2015 Median selling price: $110,000 10-year price increase: +106.4%
Cleveland is the second most affordable place to buy a home for under $300,000. As the iconic lakeside hub known for its love of industrial history, work ethic and art, Cleveland holds its future while embracing its past.
Some cities have a little more time, but others have already seen major changes. Downtown, Detroit – The Shoreway district and flats are revitalized with new business, residential and public spaces. Residential areas such as Collinwood, Old Brooklyn, Lee-Harvard and West Park have also seen investments aimed at rehabilitating homes. However, this revitalization pushed some locals out.
Cleveland Home Sale | Cleveland Home Rental | Cleveland Apartments Rental
3. Dayton, Ohio
Median selling price: $229,500 2015 Median selling price: $105,000 10 year price increase: +118.6%
Hiding between Cincinnati and Columbus, Dayton is a small city with easy access to major metros. Today, you will find the same spirit in that neighborhood, a growing downtown, and an affordable lifestyle that doesn’t sacrifice culture and convenience.
The home prices remain very affordable, with a median price of $229,000. However, due to limited supply and consistent demand, prices have more than doubled over the past decade, causing 27% of residents to fall into poverty. The growing interest in the area could put additional pressure on local affordability. Still, Dayton is one of Ohio’s most budget-friendly markets today.
Dayton Homes Sales | Dayton Rentals | Dayton Apartments for Rentals
4. Rochester, New York
Median selling price: $230,750 2015 Median selling price: $116,000 10-year price increase: +98.9%
Rochester has become one of the best places to live quietly in the country thanks to its affordable housing, trendy amenities and sense of self. Based on industry, the city modernized without losing sight of the past. From Kodak to craft beer, you can see that they have a strong pride in the old factories reused in their lofts (check out Grist Mills) and the city’s past.
Rochester offers a rare combination of value, character and livability to buyers paying prices from the larger metro. Neighborhoods like South Wedge and Park Avenue are full of indie shops and coffee houses. Plus, the University of Rochester is just in the middle. Winters can be tough, but Rochester makes up for it with great culinary options, easy access to Lake Finger, and an “emerald necklace” in the park along the Genesee River.
Rochester Home for Sale | Rochester Rental | Rochester Apartment Rental
5. Pittsburgh, Pennsylvania
Median selling price: $235,000 2015 Median selling price: $135,000 10-year price increase: +74.1%
Without losing its blue-collar spirit, Pittsburgh transformed from steel mecca into a hub of modern technology and education. The city is known for its distinctive areas, riverside scenery and stubborn sports culture. Downtown, riverside parks, hundreds of bridges and relatively high wages make it the perfect city for Pittsburgh to live in.
House prices are rising, but they did so at a slower pace than the national average. Its steady growth is combined with a median selling price of less than $250,000, making Pittsburgh one of the best metros in the country, buying the home for under $300,000.
Pittsburgh Home Sale | Pittsburgh Home Rental | Pittsburgh Apartment Rental
6. Buffalo, New York
Median selling price: $243,000 2015 Median selling price: $112,250 10-year price increase: +116.4%
Buffalo is one of the best places to live in New York, and that shows. What once waning Rust Belt City has become a hub of revitalization, along with the development of a new downtown and the hip food and art scene. Older industries like grain silos and steel plants transform into reborn breweries and iconic waterfront parks, celebrating their roots as they prepare for a reborn future.
The buffalo is also very reasonably priced. Home prices are well below the national average, making them one of the few metropolitan cities in the northeast where ownership is still in scope. Stocks are tough thanks to its popularity, but for those who can find a home, Buffalo offers an unusual opportunity to buy in a world-class city at an accessible price.
Buffalo Home for Sale | Buffalo House Rental | Buffalo Apartments Rental
7. McAllen, Texas
Median selling price: $250,000 2015 Median selling price: $129,000 10 year price increase: +93.8%
McAllen has jumped at nearly 94% home prices over the past decade, but it still ranks as one of the most affordable places in the country. The median selling price is $250,000, making homeownership possible for many buyers, especially compared to Texas Metro prices.
McAllen has a lot to do if it can withstand the heat. The cost of living is low, the community is tightly close, and locations near the border provide a fusion of culture and cuisine. However, the average wage is around $11 per $11 above the national average, making it difficult for locals to pay their daily expenses.
McAllen Homes for Sale | McAllen Homes for Rentals | McAllen Apartments for Rentals
8. Baton Rouge, Louisiana
Median selling price: $258,815 Median selling price: $173,000 10 year price increase: +49.6%
Baton Rouge, the Louisiana capital, is located northwest of New Orleans in Bluffs on the Mississippi River. The city is filled with southern history, imposing architecture, a lively music and food scene.
Baton Rouge offers the country’s most affordable homes, with a median selling price well below $300,000. Home prices are also rising slowly than many other cities on this list. Less than a third of Detroit. However, more than half of households in the area still struggle to provide basic necessities, highlighting the gap between housing costs and local wages.
Baton Rouge Homes Sale | Baton Rouge House Rental | Baton Rouge Apartments Rental
9. St. Louis, Missouri
Median selling price: $263,850 2015 Median selling price: $146,500 10-year price increase: +80.1%
St. Louis is one of the few places where you can buy a home for less than $300,000. Even after 80% prices have risen over the past decade, typical homes are relatively affordable, especially compared to coastal markets. Additionally, the metro has a low cost of living and is attractive for buyers on a budget.
People have recently come together in the area, looking for affordable housing amid the national costs. Unfortunately, this has pushed home prices up. In March, home prices rose at the fourth fastest rate in the nation. Still, St. Louis continues to offer a powerful mix of attractiveness and metropolitan amenities at low prices.
St. Louis Home Sale | St. Louis Rental | St. Louis Apartment Rental
10. El Paso, Texas
Median selling price: $264,000 2015 Median selling price: $138,175 10-year price increase: +91.1%
El Paso is a hot and arid city in southwestern Texas, known for its Mexican influences, desert scenery and abundant sunlight. Check out the diverse regions of the city. Khan Place and Cast Heights are amazing. Or go on a hike at Franklin Mountains.
Home prices in El Paso are extremely affordable, with cost of living 12% below the national average. While many residents suffer from daily costs, about a quarter of children live in poverty and more than a third of adults are food insecurity, the city is attractive to its climate and culture. For buyers looking for value and sunlight, El Paso still has a lot to offer.
El Paso Home Sale | El Paso Rental | El Paso Apartments are available for rent
Final Thoughts
Affordable homes still exist. You need to know where to look. Midwest metros like Detroit, Cleveland and Dayton generally have the lowest home prices in the country.
Still, affordability isn’t everything. Many of the places on this list have recovered from decades of economic hardship, and poverty remains a real challenge. Some metros have almost tripled the national poverty rate.
Before you move, think about not only the price of your home, but also what daily life will look like. Employment opportunities, neighborhood dynamics and long-term stability are all issues. Insights not found in housing market reports. Talk to your local Redfin agent to get a scoop or chat with residents about what the different regions look like.
Buying in today’s market is not easy, especially as most metros on this list support the sellers. However, with the right information and strategies, it is still possible to find a place that suits your budget and lifestyle.
Methodology
The ranking is based on median home-sell prices for Redfin in the 91 most populous US metropolitan areas. Home prices for 2015 will start in March 2015, with the exception of McAllen from September 2015.
