Housing News

Where to Find Cheap Homes: The 10 Housing Markets Offering the Biggest Bargains

As the spring housing market starts to pick up, buyers may finally be seeing a few encouraging signs, especially if they know where to look. 

Home prices are coming down a little, mortgage rates have eased, and affordability is improving after several tough years for homebuyers. In some housing markets, they may still be able to find deals if they're open to relocating. 

Nationally, the median price on a home for sale in February ticked down 2.1% year-over-year to $403,450, according to the latest Realtor.com data.

Meanwhile, homes are staying on the market a bit longer, with a median of 70 days on the market. That’s four days longer than a year ago, giving buyers a little more breathing room.

Improving affordability could make the coming spring market one of the more approachable buying seasons in recent years.

How homebuyers can save money in today’s housing market

Homebuyers who are willing to relocate may be able to save big money.

Indeed, buyers who shop for homes in more affordable metropolitan areas could save six figures on a home, while still purchasing in major housing markets with strong economies and growing populations. In today’s market, that gap can greatly reduce both down payments and monthly mortgage expenses.

For example, a buyer purchasing a $403,450 home at the national median price with a 10% down payment would borrow roughly $363,105. At a 6% mortgage rate, the monthly principal and interest payment would be about $2,177.

But if that same buyer purchased a home $150,000 cheaper, around $253,450, their loan would drop to about $228,105 after the same 10% down payment. At the same rate, the monthly payment would fall to roughly $1,368.

That’s a savings of about $800 per month, or nearly $9,700 per year, simply by purchasing in a cheaper market.

Below are 10 of the most affordable of the 50 largest metropolitan areas. (Metros include the main city and surrounding towns, suburbs, and smaller urban areas.)

1. Detroit

Median list price: $235,000
Savings vs. national median: $168,450

Detroit remains one of the most affordable major housing markets in the country. Buyers can find significantly larger homes for the same price they might pay for a starter home elsewhere.

“Detroit offers an affordable cost of living with a variety of housing options just outside the downtown area,” said Jason Gelios, a senior real estate specialist at Community Choice Realty in southeast Michigan. “Many are located only minutes from the city’s top amenities, including fine dining, entertainment venues, and cultural attractions.”

2. Pittsburgh

Median list price: $238,450
Savings vs. national median: $165,000

Pittsburgh combines relatively low home prices with reliable demand. The price is still fairly affordable, even though prices have risen 4.1% year-over-year. That demonstrates the market’s resilience even as other markets soften.

3. Cleveland

Median list price: $241,220
Savings vs. national median: $162,230

Cleveland offers another entry point for buyers priced out of more expensive regions. The Midwestern city sits on the banks of Lake Erie, between Detroit and Buffalo, N.Y.

4. Buffalo, N.Y.

Median list price: $249,900
Savings vs. national median: $153,550

Buffalo remains one of the most affordable housing markets in the Northeast. Despite lower prices, homes here sell faster, spending 13 fewer days on the market than last year. That shows strong local demand.

5. St. Louis

Median list price: $278,175
Savings vs. national median: $125,275

St. Louis offers buyers an affordable road to homeownership. Prices in the metro have risen by 0.5% year-over-year, while housing stock has grown by over 10%, offering more options for buyers.

6. Birmingham, Ala.

Median list price: $289,000
Savings vs. national median: $114,450

Birmingham, about 150 miles west of Atlanta, combines moderate home prices with a relatively stable housing market.

7. Memphis, Tenn.

Median list price: $299,450
Savings vs. national median: $104,000

Memphis is another metro where buyers can still find homes under $300,000. Prices have declined 8.7% year-over-year, one of the largest drops among major markets. This may open opportunities for buyers looking to negotiate.

8. Louisville, Ky.

Median list price: $300,000
Savings vs. national median: $103,450

Housing stock in this metro has surged 27.3% year-over-year. This gives home hunters more choices, and leverage, than they had a year ago.

9. Indianapolis

Median list price: $309,950
Savings vs. national median: $93,500

Indianapolis continues to attract buyers seeking a balance between affordability and job growth.

10. Oklahoma City, Okla.

Median list price: $315,000
Savings vs. national median: $88,450

Oklahoma City rounds out the list, with a median list price still comfortably below the national midpoint. Housing stock has increased 11.5% year-over-year, signaling more choice for buyers entering the market this spring.