The Most Affordable Cities to Buy a Home in the U.S.

Buying a home in the United States has become a challenge for many people. Rising mortgage rates, limited inventory, and high competition have made homeownership feel out of reach for many families.

Still, some cities and states offer more affordable options than others. By analyzing key factors such as housing supply, costs, and income levels, this article highlights the most affordable areas for purchasing a property.
 

Why Is Homeownership So Difficult Right Now?

A recent study from Realtor.com explains that owning a home has become considerably harder nationwide. High interest rates for loans—around a 6.65% fixed rate for 30-year mortgages—combined with limited housing availability and low affordability contribute to the challenge.

To estimate whether someone can afford a three-bedroom home, Realtor calculated that families need to offer a 10% down payment and use no more than 30% of their household income to cover housing costs (including taxes and insurance). This financial requirement has placed homeownership out of reach for many Americans.

Check out: Quick Guide to the Best First-Time Home Buyer Loans in 2025
 

States Where Homes Are Most Affordable

If you're looking for states with more reasonably priced homes, Realtor's data highlights several locations where properties under $100,000 are available. These affordable states include:
 

• Alabama
• Kentucky
• Pennsylvania
• Oklahoma
• Illinois
• Arkansas
• Mississippi
• Missouri
• Kansas
• Iowa
• Indiana
• Louisiana
• Michigan
• Ohio
• West Virginia

These states offer better opportunities for buyers, although prices can vary significantly depending on local market conditions.
 

The Top Cities for Affordable Homes

When it comes to cities, a study by WalletHub provides deeper insights. The study ranked cities based on 10 factors, including the cost of living, home prices compared to income, and housing availability. Here are the top cities for affordable housing:

1. Flint, Michigan

Flint is ranked as the most affordable city for homebuyers. With average prices of $61 per square foot and a large housing inventory, nearly 21% of homes are available for purchase. This makes Flint a promising option for families looking for low-cost housing opportunities.

2. Detroit, Michigan

Detroit comes in second place, offering very low home prices with robust availability. Nearly 22% of homes in Detroit are available for purchase, providing buyers a variety of options at affordable rates.

3. Pittsburgh, Ohio

Pittsburgh ranks as the third most affordable city, offering similarly reasonable housing prices and availability. While costs and inventory levels may vary, Pittsburgh remains an accessible choice for many homebuyers.
 

Tips for Buying an Affordable Home

Here are some tips to help you navigate the home-buying process in affordable cities and states:

1. Research Local Markets

Prices vary by city and neighborhood, so take time to research the market in the area you're interested in. Tools like Realtor.com and Zillow can help you compare prices and inventory.

2. Focus on Your Budget

Stick to homes you can afford. Use online calculators to estimate what you can reasonably pay in monthly mortgage expenses while staying within your income constraints.

3. Check Mortgage Rates

Look for lenders offering competitive rates. Even a small difference in interest rates can save you thousands over the course of a loan.

4. Explore Government Programs

Many states and cities offer assistance programs for first-time homebuyers. Look into grants, low-interest loans, and down payment assistance options.

5. Be Flexible

Consider cities or states where housing is more affordable, even if it means relocating. The top-ranked cities in WalletHub's study—Flint and Detroit—are good examples of places where moving could make owning a home more realistic.
 

Bottom Line

Although buying a home is challenging across much of the United States, there are still opportunities to find affordable housing—particularly in cities like Flint, Detroit, and Pittsburgh, as well as states like Michigan or Ohio.

By exploring options in these areas, properly budgeting, and using available resources, families can improve their chances of achieving homeownership.

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