Over the past decade, the number of homes for sale in the US for less than $200,000 has fallen dramatically.
While in 2013 about half of homes on the market were below this threshold, this has now fallen to less than a quarter of sales.
But there is still hope for first-time buyers, retirees living on a fixed income or anyone looking to buy on a budget, new sources said. insights from broker.com.
The real estate marketplace looked at ten US cities where first-time homeowners can still find homes below this affordable price point.
The supply of cheaper housing doesn’t mean households have to skimp on their quality of life – as the top cities on the lists are a short drive from beautiful beaches and a major city full of multi-million dollar homes.
Both Lauderdale Lakes and Lauderhill are approximately a 15-minute drive from downtown Fort Lauderdale and the beaches
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Currently, the average interest rate on a 30-year mortgage fluctuates around 7 percent.
This means the monthly payment for a $200,000 home with a 20 percent down payment would be about $1,500, which is less than the national average rent of $1,732, according to Realtor.com.
The survey shows that in some parts of the country the dream of an affordable home is flourishing. In some cities, homes priced below the $200,000 threshold make up the vast majority of the market.
Topping the list are two suburbs of Fort Lauderdale, Florida.
Lauderdale Lakes, home to about 35,000 people, tops the rankings with 17 of the 20 homes listed for less than $200,000.
Secondly, there is the neighboring suburb of Lauderhill, where approximately 75,000 people live.
The average home price in Lauderdale Lakes is $149,000, according to Realtor.com, while the average home in Lauderhill costs $175,000.
Both are less than the typical national list price of $442,500 – and most of the housing stock is condominiums.
The cities are popular retirement destinations, but are cheaper than other nearby cities in Florida.
Both are about a 15-minute drive from downtown Fort Lauderdale and the beaches, and close to the natural beauty of the Everglades.
“Areas that were once hot for downsizing are now out of reach for many,” said Hannah Jones, senior economic analyst at Realtor.com.
“Florida markets like Lauderdale Lakes are seeing a surge in affordable apartments, providing viable options for people looking to downsize without breaking the bank.”
To find the affordability havens, the real estate market analyzed listing data from the first week of June.
It ranked the cities based on the number of listings costing less than $200,000 and compared that figure to the total number of homes for sale in that metro area.
Third on the list is Akron, Ohio, 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 still has plenty of affordable housing available.
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 an average list price of just $90,000.
In the so-called “Motor City,” home prices have been among the fastest growing in the U.S. in recent years as the city recovers from the mortgage crisis that has left some homes virtually worthless.
About 70 percent of home listings in Akron, Ohio, are priced under $200,000
However, real estate remains affordable because Detroit has lagged behind other cities in home price growth.
“Fixer-uppers are fairly standard in the Motor City as it continues to undergo broad revitalization,” the study reads.
Despite its rise in 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 an average listing of $161,194.
The nearby city of Niagara Falls, an hour and a half drive from Rochester, ranks sixth in the rankings – 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 the mid-sized city in the southwestern part of the state benefit from a lower cost of living, but especially housing.
Compared to Atlanta, where the cost of living is close to the national average, living in Albany is 40 percent cheaper.
“With a lower cost of living and increasing inventory, cities like Albany offer great value for homebuyers,” which Jones says is emblematic of the region. “The South is seeing a big increase in affordable inventory.”
But nowhere will there be a more consistent supply of affordable housing in 2024 than in the Midwest, the study found.
In addition to Detroit and Akron, three more 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 an average list price of just $90,000.
In Michigan’s capital, homebuyers will notice that more than two-thirds of homes are priced under $200,000.
Cleveland, meanwhile, has the second-highest number of home price tags 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 an average list price of $164,950.
Potential buyers may want to hurry because these markets — especially those in the Midwest — may not be able to 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 lot of price growth over the past year,” Jones added.