Despite a national median home price of $425,000 and mortgage rates hovering around 6.82%, some metro areas in the U.S. still offer more affordable housing options.
Realtor.com’s September Housing Market Report highlights several cities where home prices remain below $300,000.
Topping the list is Pittsburgh, with a median list price of $245,000. Detroit follows at $277,000, Buffalo at $277,450, Rochester at $282,500, and St. Louis at $299,900—offering significant savings compared to the national median.
“For anyone feeling discouraged by the U.S. housing market, it’s not all doom and gloom,” said Ralph McLaughlin, senior economist at Realtor.com, in a CNBC interview. “There are still pockets of relative affordability across the country.”
Rochester stands out as an example. It ranks 18th on the list of September’s hottest housing markets, yet its median home price remains $143,000 below the national average, even after a 13% increase in list prices over the past year.
“It’s a classic case of supply and demand imbalance,” said James Yockel, CEO of the Greater Rochester Association of Realtors. “We’ve had consistent under-building for two decades.” In Monroe County, where Rochester is located, new construction has plummeted from around 1,600 building permits per year in the early 2000s to just 400 today.
Yockel also noted that New York’s tax structure influences home prices. “Families have a set housing budget,” he said. “In New York, more of that budget goes to taxes, leaving less for the actual home, which helps moderate price growth.”
The relative affordability in these areas is partly due to long-term economic trends. “These are cities that have experienced slower job and population growth over the last 30 to 50 years,” McLaughlin explained. “This tends to keep home prices in check, either causing them to stagnate or rise more slowly than the national average.”
Pittsburgh’s housing market has recently shifted from a seller’s market to a more balanced one. “We’re seeing inventory increase, homes staying on the market longer, and more price cuts,” McLaughlin noted.
This contrasts sharply with 2020, when the national median home price was $280,000, and mortgage rates were below 3%, creating a buyer-friendly environment.
In today’s market, with mortgage rates over 6% and higher home prices, affordable cities are becoming increasingly appealing to remote workers and those who can relocate. These cities offer a more accessible path to homeownership in a challenging market.