Specific markets still have a range of homes available for under $300,000
Despite soaring prices and persistently high mortgage rates, new data from Realtor.com reveals that homebuyers can still find properties under $300,000 in select US markets—offering hope amid widespread affordability challenges.
The nationwide median home sale price reached $437,864 in April, a 1.3% increase from the previous year, according to Redfin. Before the COVID-19 pandemic, the typical US home sold for less than $300,000. The current housing climate, shaped by a surge in demand and long-standing inventory shortages, has particularly disadvantaged first-time buyers.
The National Association of Realtors estimates that the US needs more than 1 million additional homes priced below $340,000 to close the affordability gap. Still, Realtor.com’s analysis identifies 145 metropolitan areas where the typical home price remains at or under the $300,000 mark.
Affordable housing markets are largely concentrated in the South and Midwest, where cities such as Detroit ($109,000), Birmingham ($181,500), St. Louis ($199,999), and Memphis ($218,200) offer lower-priced options. Other metro areas meeting the affordability criteria include Baltimore, Indianapolis, Pittsburgh, and Oklahoma City.
“These regions tend to offer more affordable homes as they have generally more space to grow and lower demand than a high-density city,” said Hannah Jones, senior economic research analyst at Realtor.com.
While lower prices offer an advantage, affordability is not uniform. In cities like Detroit, a 30-year fixed mortgage at a 6.8% interest rate would yield a monthly payment of approximately $762—assuming a 20% down payment. For many locals, even these figures remain out of reach, especially in markets that saw rapid price appreciation during the pandemic.
Eastern markets, where affordability is rarer, still present some exceptions. Homes in Philadelphia, Pittsburgh, and Baltimore are among the few available for under $300,000.
Jones noted that while cities such as Baltimore and Detroit have faced economic difficulties, recent investments have renewed interest in their housing markets.
Meanwhile, nationwide housing inventory has returned to near pre-pandemic levels. In Southern states like Texas and Florida, new home construction has surpassed previous norms. However, demand has not kept pace. With an estimated 500,000 more sellers than buyers, many homeowners are reducing asking prices.
Though mortgage rates remain high, this shift may provide long-awaited relief to homebuyers.
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