Affordable housing can be difficult to come by. In the past decade alone, the number of homes for purchase under $200,000 went from half of all sales to 21% of all home sales, according to a recent report. At the same time, the national median listing price on homes has increased nearly 40% since 2019.
For the roughly two-thirds of Americans who do own homes, location is a major determinant of their home’s value. Shopping for a new home on a constrained budget may limit prospective buyers to certain areas in the U.S. The good news is the inventory of smaller and more affordable homes has grown in share.
Lower living costs and increasing inventory in some regions provide great value for homebuyers. The South is seeing a big increase in affordable inventory. Cities with homes under $200,000 are becoming more common, particularly in the upper-Midwest and Southern regions.
These cities have the largest concentration of affordable homes in the nation:
Realtor.com collected data on cities that had at least 100 total listings available in early June. They compared the total number of listings in the area with the total number of listings priced $200,000 or less.
By volume, Detroit, Michigan had the most number of listings under $200,000 available, with 1,586 homes for sale or 64% of all listings. Cleveland, Ohio followed in total volume of affordable listings.
Two suburbs of Fort Lauderdale, Florida had the highest concentration of affordable homes for sale. In Lauderdale Lakes, 85% of homes for sale were listed for less than $200,000. Lauderhill, Florida – a neighboring suburb – had the second-largest concentration of affordable homes in the U.S.
In Lauderdale Lakes, the median home price is $149,000, far below the national median listing price of $442,500.
The number of affordable home listings has consistently declined between 2013 and 2023. At the beginning of the decade, about half of all listings were below $200,000. Last year, less than a quarter of all home listings were worth $200,000 or less.
Cities with homes under $200,000 provide viable options for those looking to buy without breaking the bank. Homeownership is a major financial asset to many households, and knowing the worth of a home can help families decide to buy or sell.
County-level data of housing statistics from the American Community Survey shows how much homes are valued across the country. Cities with homes under $200,000 are becoming increasingly rare, but they still exist and offer opportunities for budget-conscious buyers.
Thanks for reading,
Chris
