The cheapest places to buy a house right now
Here are the top 10 undervalued metropolitan real estate markets in the country.
- Soaring home prices have made buying a home unaffordable for a typical first-time buyer.
- Midwestern and Southern counties have the lowest median home prices.
- Here is a list of the 10 most undervalued markets where they are expected to experience greater price appreciation compared to other markets in 2022.
The median U.S. home price for active listings hit a new all-time high of $392,000 in February, according to Realtor.com’s Monthly Housing Trends Report. Soaring home prices are due to low interest rates, growing demand and shrinking supply.
The National Association of Realtors (NAR) estimates that nearly one million renter households have been shut out of the housing market. As a result, the share of first-time buyers fell to 26%, an eight-year low. According to the NAR’s Housing Affordability Index, soaring prices have made buying a home unaffordable for a typical first-time buyer.
Fortunately, there are (relatively) affordable places to find. Although prices continue to rise in all parts of the country, there are also offers.
The west and east coasts have the most expensive real estate, with median home prices well over $1,000,000 in places like New York County (Manhattan) and California’s Bay Area counties. Median prices in the Midwest and South, however, are below $150,000.
Here are the counties with the highest median home values in Q4 2021:
- Nantucket County, Massachusetts: $1,370,520
- New York County, New York State: $1,306,210
- Santa Clara County, CA: $1,253,400
- San Mateo County, California: $1,247,070
- San Francisco County, CA: $1,230,800
Here are the counties with the lowest median home values in Q4 2021:
- Todd County, South Dakota: $43,956
- Mellette County, South Dakota: $39,349
- McDowell County, West Virginia: $41,262
- Kent County, Texas: $43,965
- King County, Texas: $46,091
Subways with the cheapest places to buy a house
Although some counties have the cheapest prices, people are unlikely to want to move to places with declining populations and few job prospects. In its latest report, 2022 Housing Market Hidden Gems, the NAR named the top 10 undervalued markets. The NAR only considered metropolitan areas with a population of at least 200,000, metropolitan areas with positive employment and wage growth, and markets where they are expected to see stronger price appreciation per compared to other markets in 2022. These cities are listed in alphabetical order:
- Dallas-Fort Worth, Texas
- Daphne-Fairhope-Farley, Alabama
- Fayetteville-Springdale-Rogers, Arkansas-Missouri
- Huntsville, Alabama
- Knoxville, TN
- Palm Bay-Melbourne-Titusville, Florida
- Pensacola-Ferry Pass-Brent, Florida
- San Antonio-New Braunfels, Texas
- Spartanburg, South Carolina
- Tucson, Arizona
The housing market is expected to remain competitive, so it’s important not to rush into buying a home you can’t afford. The decision to buy a home should be based on your personal financial situation. Prospective buyers should also consider other expenses associated with home ownership, including property taxes, maintenance costs and home insurance.
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