Finding an affordable home in 2024 might sound like an exasperating exercise in futility.
Due to the COVID-19 pandemic, real estate prices skyrocketed and, for the most part, have not yet come back down to earth. The average U.S. home is now valued nearly 50% higher than this time four years ago. And that’s before we get into current interest rates and their effect on monthly mortgage payments.
In fact, there’s stark proof of shrinking affordability across the country: Over the past several years, the number of homes under $200,000 has gone from around half of all sales to less than a quarter of sales in 2023.
It all sounds grim—but houses for budget-minded buyers have to exist, right?
That’s why the Realtor.com data team decided to hunt down some true real estate unicorns—where homes for $200,000 or less are hiding.
We chose this price point because it’s inarguably attractive for first-time homebuyers, retirees living on a fixed income, or anybody looking to buy on a budget.
With current mortgage rates hovering around 7%, the monthly payment on a $200,000 home with a 20% down payment would be around $1,500—that’s less than the national median rent of $1732.
To find these affordability havens, we scoured listing data from the first week of June and identified cities with at least 100 total listings. (We excluded land and mobile homes.) Then, we ranked the cities based on the number of listings priced below $200,000 and how that figure compared with the overall number of homes for sale in that metro.
What we found is that in certain corners of the country, the dream of an affordable home is thriving. In fact, in some cities, homes priced below $200,000 make up the vast majority of listings.
From Florida’s sunny suburbs to the resilient Midwestern Rust Belt, some regions are defying the national trend. However, the data suggests that these low-priced homes might not be so low-priced for long.
Where all the $200K homes are hiding
At the very top of our list is not one—but two suburbs of Fort Lauderdale, FL.
The first, Lauderdale Lakes, leads our rankings with 17 out of every 20 homes listed for less than $200,000.
And coming in at No.2 is the suburb right next door, Lauderhill.
The median home price is $175,000 in Lauderhill and $149,000 in Lauderdale Lakes—both less than half the national median list price of $442,500.
These towns are extra attractive because they’re in a popular retirement destination but more affordable than other nearby Florida cities. Both are about 15-minute drives to the center of Fort Lauderdale, which means easy access to urban perks without compromising on a suburban lifestyle.
“Areas that were once popular for downsizing are now out of reach for many,” says Hannah Jones, a Realtor.com senior economic analyst. “Florida markets like Lauderdale Lakes are seeing a surge in affordable condos, providing viable options for those looking to downsize without breaking the bank.”
(It’s worth noting that in both Florida cities, the housing stock is almost entirely condominiums.)
Outside of Florida, we find Albany, GA, a medium-sized city in the southwestern part of the Peach State. Albany residents benefit from an overall lower cost of living, but especially so for housing. Compared with Atlanta, where the cost of living is near the national average, housing in Albany is 40% less expensive.
“With lower living costs and increasing inventory, cities like Albany provide great value for homebuyers,” which, Jones says, is emblematic of the region. “The South is seeing a big increase in affordable inventory.”
But nowhere is there a more consistent swath of affordable homes in 2024 than in the Upper Midwest.
By sheer volume, Detroit has the most listings under $200,000, at 1,500-plus on the market in early June. This might not come as a surprise; fixer-uppers are fairly standard in the Motor City, as it continues to see a broad revitalization.
Cleveland comes next for the volume of sub-$200,000 home price tags, with more than 500 on the market.
In Michigan’s capital city of Lansing, homebuyers will also find more than two-thirds of homes are priced below the $200,000 mark.
Potential buyers might want to hurry, though: These markets—especially the ones in the Midwest—might not boast these kinds of home prices for much longer.
“These are still some of the most affordable places in the country, but they’ve seen a lot of price growth over the last year or so,” Jones says.
For example, Detroit home prices are up by more than 10% compared with the same time last year. In Cleveland, prices have grown by more than 20% in the past year. Akron and Lansing have also seen double-digit price growth.
Interested in getting in on a good deal? Here’s a look at the cities where home shoppers will have the best chance to find a home under $200,000 in 2024.
1. Lauderdale Lakes, FL
Lauderdale Lakes, FL has a median list price of $149,350. Ulf – stock.adobe.com
Median list price: $149,350Number of listings under $200,000: 239Percentage of listings under $200,000: 85%
2. Lauderhill, FL
Lauderhill, FL has a median list price of $175,000. rodphotography – stock.adobe.com
Median list price: $175,000Number of listings under $200,000: 404Percentage of listings under $200,000: 70%
3. Akron, OH
Akron, OH has a median list price of $138,600. SeanPavonePhoto – stock.adobe.com
Median list price: $138,600Number of listings under $200,000: 214Percentage of listings under $200,000: 70%
4. Detroit, MI
Detroit, MI has a median list price of $90,000. f11photo – stock.adobe.com
Median list price: $90,000Number of listings under $200,000: 1586Percentage of listings under $200,000: 64%
5. Rochester, NY
Rochester, NY has a median list price of $161,194. Greg Glaser/Wirestock Creators – stock.adobe.com
Median list price: $161,194Number of listings under $200,000: 213Percentage of listings under $200,000: 68%
6. Niagara Falls, NY
Niagara Falls, NY has a median list price of $114,500. spiritofamerica – stock.adobe.com
Median list price: $114,500Number of listings under $200,000: 98Percentage of listings under $200,000: 80%
7. Albany, GA
Albany, GA has a median list price of $104,000. John – stock.adobe.com
Median list price: $104,000Number of listings under $200,000: 245Percentage of listings under $200,000: 64%
8. Lansing, MI
Lansing, MI has a median list price of $143,950. SeanPavonePhoto – stock.adobe.com
Median list price: $143,950Number of listings under $200,000: 133Percentage of listings under $200,000: 68%
9. Rockford, IL
Rockford, IL has a median list price of $164,950 Henryk Sadura – stock.adobe.com
Median list price: $164,950Number of listings under $200,000: 153Percentage of listings under $200,000: 66%
10. Cleveland, OH
Cleveland, OH has a median list price of $135,475. Jason – stock.adobe.com
Median list price: $135,475Number of listings under $200,000: 512Percentage of listings under $200,000: 61%
