With mortgage rates at their highest levels in a decade and a half, the U.S. housing market is beginning to cool. According to the National Realtors Association, existing home sales fell to fewer than 4.3 million in April 2023, down from over 4.4 million in March and nearly 5.6 million one year ago. And while home sales prices nationwide have been on the decline this year, they remain near record highs, according to Census data.
The median list price for a home in the United States was $430,000 in April 2023, up 1.3% from March, and 2.5% more than a year ago, according to April data from Realtor.com, a real estate market website
At such high prices, homeownership is prohibitively expensive for many budgets in much of the country. However, in some metropolitan areas, there are hundreds of homes on the market, and most of them are selling for a fraction of the national median home value.
Using data from Realtor.com, 24/7 Wall St. identified the 35 cheapest metro areas to buy a home. Metro areas are ranked by median list price in April 2023. We only considered metro areas with at least 200 homes on the market in April 2023. Supplemental state level data, as well as one-year change in median list price and median home size are also from realtor.com.
Each of the 35 metro areas on this list had a median list price of less than $250,000 in April 2023, anywhere from 4% to 223% below the statewide median. The vast majority of these metro areas are located in the Midwest and the South, with six additional cities in New York and Pennsylvania. (Here is a look at how much home you can buy for $200,000 in each state.)
While home prices in these cities are relatively low, in most, they are considerably higher than they were one year ago – and rising faster than average. In 23 of the 35 metro areas on this list, the April 2023 median list price was over 10% higher than it was in April 2022. (These are the cities where the cost of housing has skyrocketed.)
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