Over the past decade, the number of homes for sale in the United States for less than $200,000 has decreased dramatically.
While in 2013, about half of the homes on the market were priced below this threshold, that price has now dropped to less than a quarter of sales.
But there’s still hope for first-time buyers, retirees living on a fixed income or anyone else looking to buy on a budget, according to a new report. perspectives from Realtor.com.
The real estate market searched for ten American cities where budding homeowners can still find properties below this affordable price.
Cheaper housing on offer doesn’t mean households have to skimp on their quality of life, as the top cities on the lists are within walking distance of beautiful beaches and a major city full of multi-million dollar homes.
Both Lauderdale Lakes and Lauderhill are about a 15-minute drive from downtown Fort Lauderdale and its beaches.
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Currently, the average rate on a 30-year fixed mortgage is around 7 percent.
This means the monthly payment on a $200,000 home with a 20 percent down payment would be about $1,500, which is less than the national median rent of $1,732, according to Realtor.com.
The study found that in some parts of the country, the dream of affordable housing is thriving. In some cities, homes priced below the $200,000 threshold make up the vast majority of the market.
At the top of the list are two suburbs of Fort Lauderdale, Florida.
Lauderdale Lakes, home to about 35,000 people, leads the rankings with 17 in 20 homes listed for less than $200,000.
In second place is the neighboring neighborhood, Lauderhill, which is home to about 75,000 people.
The median home price in Lauderdale Lakes is $149,000, according to Realtor.com, while the average home in Lauderhill is listed for $175,000.
Both are below the typical national list price of $442,500, and the majority of the housing stock is condominiums.
The cities are popular destinations for retirees, but are more affordable than other nearby Florida cities.
Both are about a 15-minute drive from downtown Fort Lauderdale and its beaches, and close to the natural beauty of the Everglades.
“Areas that were once popular for downsizing are now out of reach for many,” says Hannah Jones, senior economic analyst at Realtor.com.
“Florida markets like Lauderdale Lakes are seeing a rise in affordable condominiums, providing viable options for those looking to downsize without breaking the bank.”
To find havens of affordability, the housing market analyzed listing data from the first week of June.
It ranked cities based on the number of properties that cost less than $200,000 and compared that figure to the total number of homes for sale in that metropolitan area.
Third on the list is Akron, Ohio, which is less than an hour’s drive from Cleveland.
According to Realtor.com, the city has seen double-digit price growth over the past year, but is still home to many affordable properties.
About 70 percent of listings in the city cost less than $200,000, with an average of $138,600.
Fourth on the list is Detroit, Michigan, where 64 percent of homes cost less than the $200,000 threshold, with a median list price of just $90,000.
In the so-called ‘Motor City,’ home prices have been among the fastest growing in the United States in recent years, as the city recovers from the mortgage crisis that left some homes virtually worthless.
About 70 percent of home listings in Akron, Ohio, are under $200,000
However, properties remain affordable, as Detroit was lagging behind other cities in terms of home price growth.
“Houses in need of repair are quite common in the Motor City as it continues to undergo extensive revitalization,” the study reads.
Despite growing popularity in recent years, prices in Rochester, located on Lake Ontario, also remain affordable, placing it fifth on the list.
In New York City, 68 percent of homes on the market cost less than $200,000, with a median listing price of $161,194.
The nearby city of Niagara Falls, which is an hour and a half drive from Rochester, ranks sixth, with 80 percent of homes on the market below the threshold.
Albany, Georgia, ranks seventh, with a median list price of $104,000 and 64 percent of homes under $200,000.
Residents of this mid-sized city in the southwest of the state benefit from a lower cost of living in general, but especially in the case of housing.
Compared to Atlanta, where the cost of living is close to the national average, housing in Albany is 40 percent less expensive.
“With lower costs of living and growing inventory, cities like Albany offer great value for homebuyers,” which Jones said is emblematic of the region. “The South is seeing a huge increase in affordable inventory.”
But nowhere is there a more consistent swath of affordable housing in 2024 than in the Midwest, according to the study.
In addition to Detroit and Akron, three other Midwestern cities round out the top ten: Lansing, Michigan, Rockford, Illinois, and Cleveland, Ohio.
Fourth on the list is Detroit, Michigan, where 64 percent of homes cost less than the $200,000 threshold, with a median list price of just $90,000.
In Michigan’s capital, home buyers will find that more than two-thirds of homes are priced under $200,000.
Cleveland, meanwhile, has the second-highest volume of homes priced under $200,000, with more than 500 on the market, second only to Detroit.
In Rockford, 66 percent of homes for sale fall into this category, with a median list price of $164,950.
Potential buyers may want to hurry, however, as these markets, especially those in the Midwest, may not boast these types of home prices for much longer, Realtor.com warned.
“These are still some of the most affordable places in the country, but they have seen a huge price increase over the last year,” Jones added.
