Explore the cheapest cities to buy a house in the US. Check out these updates on home prices, cost of living, and more
Affordability is a primary factor in the homebuying process. Most clients are looking for locations where they can secure a mortgage with lower monthly payments. This preference is coupled with access to job opportunities, schools, and other amenities.
Fortunately, there are several cities across the country where houses remain relatively affordable. These places offer a lower cost of living and reasonable property taxes. It also comes with opportunities for long-term investment.
Understanding where the most affordable housing markets are can give mortgage brokers an edge. If you direct your clients toward these budget-friendly cities, you’ll help them achieve their dream of homeownership without the excessive financial strain.
In this article, Mortgage Professional America will highlight the cheapest cities to buy a house in the US. We will talk about how much your clients should prepare by listing the median sale price of property per city. Want to learn more about these affordable locations? Keep reading below.
Ten cheapest cities to buy a house in the US
You can help your clients secure a mortgage more easily by finding the least expensive cities to purchase property. Check out these ten cheapest areas where eligible borrowers can search for homes that are priced below $200,000:
- Detroit, Michigan
- Pittsburgh, Pennsylvania
- St. Louis, Missouri
- Cleveland, Ohio
- Baltimore, Maryland
- Chicago, Illinois
- Warren, Michigan
- Indianapolis, Indiana
- Cincinnati, Ohio
- Philadelphia, Pennsylvania
Let’s take a closer look to see what each city has to offer:
1. Detroit, Michigan
- Median household income: $63,937
- Median sale price: $175,000
Detroit is the most affordable city in the US. This is largely due to its past economic struggles. Despite its decline and bankruptcy in 2013, the city is undergoing a revival. New businesses, restaurants, and coffee shops are bringing fresh energy to neighborhoods like Midtown and Corktown.
Affordable housing and a lower cost of living make it a great option for your clients. Detroit also has stunning landmarks and tourist attractions such as:
- Detroit Institute of Arts
- Anna Scripps Whitcomb Conservatory
- Detroit Zoo
- The Henry Ford in Dearborn
- Eastern Market farmer's distribution center
Here is a walking tour of Detroit that you can watch and share with your clients:
Aside from Michigan, there are other affordable US states where home buyers can purchase property.
2. Pittsburgh, Pennsylvania
- Median household income: $79,863
- Median sale price: $225,000
Pittsburgh is located at the confluence of the Allegheny River and Monongahela River. Once an industrial powerhouse, it has transformed into a hub for tech and healthcare industries. Neighborhoods like Lawrenceville and the Strip District have become social hotspots in this city.
While housing prices have increased slightly due to growing demand, Pittsburgh is still the second cheapest city to purchase a house in the US.
3. St. Louis, Missouri
- Median household income: $85,750
- Median sale price: $258,000
St. Louis provides an excellent balance of affordability and city living. Renters and homeowners can enjoy a cost of living that is 15.9 percent lower than the national average. As for recreational activities, your clients can enjoy the Cardinals games at Busch Stadium or experience the art scene along the Delmar Loop. St. Louis also operates more than 100 parks which include:
- Forest Park
- Gateway Arch National Park
- Missouri Botanical Garden
- Tower Grove Park
- Carondelet Park
4. Cleveland, Ohio
- Median household income: $75,255
- Median sale price: $205,000
At the fourth spot of the cheapest cities to buy a house in the US is Cleveland. It is a lively and affordable place to buy property in the state of Ohio. Cleveland boasts a growing healthcare and finance industry, along with revitalized neighborhoods.
From historic Victorian homes in Ohio City to modern lofts near Lake Erie, Cleveland can offer a variety of options for your clients. Cultural attractions like the Museum of Contemporary Art Cleveland and the Rock and Roll Hall of Fame also make this city an appealing place to settle in.
5. Baltimore, Maryland
- Median household income: $108,865
- Median sale price: $360,000
Baltimore, also known as “Charm City”, is another place in the US that offers cheap options for housing. Property prices are within reach especially in neighborhoods like Canton and Federal Hill.
The city's economy is thriving due to its bustling port and diverse job market. Healthcare and education also impact its growth, with Johns Hopkins University and Hospital being major employers in Baltimore.
Check out this walking tour video of Maryland:
6. Chicago, Illinois
- Median household income: $95,513
- Median sale price: $336,000
Chicago is a massive city with a wide range of housing prices, from luxury apartments downtown to affordable homes in various neighborhoods. Despite its size, Chicago remains one of the cheapest big cities to buy a home. Your clients can visit world-class museums such as:
- Art Institute of Chicago
- Loyola University Museum of Art
- Museum of Contemporary Art
- Museum of Contemporary Photography
- National Museum of Mexican Art
- National Veterans Art Museum
Property buyers are also welcome to stroll in public parks and green spaces like:
- Chicago Botanic Garden
- Lincoln Park
- Ping Tom Memorial Park
- DuSable Park
- Millennium Park
- Grant Park
- Cook County Forest Preserves
7. Warren, Michigan
- Median household income: $94,254
- Median sale price: $287,000
Located just north of Detroit in Macomb County, Warren is a quiet yet affordable alternative to Michigan’s most populous city. Being home to the General Motors Technical Center, Warren’s economy is driven by manufacturing, with a strong focus on the automotive sector.
This city presents an attractive option if your clients want to live near the bustling streets of Detroit while keeping a quieter lifestyle. You can check out what Warren has to offer this video:
8. Indianapolis, Indiana
- Median household income: $86,071
- Median sale price: $294,000
Indianapolis is an excellent option for home buyers who want urban amenities without high costs. The city offers a booming sports culture, with the Colts, Pacers, and the Indy 500 drawing fans year-round.
If your clients are looking for cheap locations with excellent schools, Indianapolis is perfect for them. They can find the largest school district in this city, the Indianapolis Public Schools. Other educational institutions include:
- Metropolitan School District of Pike Township
- Metropolitan School District of Warren Township
- Metropolitan School District of Washington Township
- Indiana University Indianapolis
- Purdue University in Indianapolis
9. Cincinnati, Ohio
- Median household income: $85,910
- Median sale price: $276,000
Cincinnati is a city in Ohio that blends affordability with culture. Its revitalized Over-the-Rhine district and new riverfront developments have transformed it into a desirable place to live for home buyers. Over-the-Rhine is one of the largest and most intact urban historic districts in the country. Here are some of Cincinnati’s neighborhoods:
- Mount Adams
- Hyde Park
- West End
- Pleasant Ridge
- Mount Washington
- Clifton
- Westwood
Your clients will find property prices below the national average in Cincinnati. They can also take advantage of the city's strong job market.
Check out the busy streets of Cincinatti in this walking tour clip:
10. Philadelphia, Pennsylvania
- Median household income: $72,840
- Median sale price: $268,000
Lastly, we have Philadelphia in Pennsylvania. Like most cities in the Keystone State, Philadelphia is rich in history and culture. It offers home buyers an affordable alternative to pricier East Coast cities.
While rental prices are skyrocketing, homeownership is still within reach. The city has introduced the Philly First Home program for first-time home buyers, further helping residents afford homes. Typical homes in this city include row houses and single-family homes.
Finding an affordable home in the US has become increasingly difficult as housing prices continue to rise and fall. However, these cities have proven that home buyers can find reasonably priced properties without breaking the bank. Guiding your clients in choosing the most ideal location can make homeownership more achievable, especially for first-time buyers and those on a budget.
All numerical values used in the list above are from Redfin.
Which state in the US has the lowest house prices?
The state of West Virginia has the lowest house prices in the country. However, it ranks 49th when looking at the best states for real estate investment in the US.
Guiding your clients to affordable homeownership
Want to be as successful as those who are considered the best mortgage professionals across the globe? Helping home buyers find affordable housing options is vital. Knowing where the most affordable housing markets are located can be a game-changer for your career. You might be able to build a loyal client base and get more referrals.
If you recommend budget-friendly locations to your clients, it will increase their chances of reaching their homeownership dream. They might be able to secure favorable mortgage terms which can reduce financial stress.
Lower property prices also mean more manageable monthly repayments and less expensive initial deposit. If your clients want to determine what sort of down payment they need to make, you can assist them by using our free mortgage calculator to get an estimate.
Have you tried helping clients who are looking for the cheapest cities to buy a house in the US? Share your experience in the comments below.
