These US cities have the most homes under $200K, study finds
Finding an affordable home in 2024 may sound like an impossible task, but according to a new report by Realtor.com, home sales for less than $200,000 still exist.
You just need to know where to look.
According to the real estate company, housing prices skyrocketed following the COVID-19 pandemic and have not yet come back down for the most part. The average U.S. home is now valued nearly 50% higher than this time four years ago. And that’s before factoring in current interest rates and their effect on monthly mortgage payments.
To make matters worse, 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 in 2023.
A "For Sale" sign outside of a home in Atlanta, Georgia, US, on Friday, Feb. 17, 2023. (Credit: Dustin Chambers/Bloomberg via Getty Images)
That’s why the Realtor.com data team sought to hunt down some true real estate unicorns – where homes for $200,000 or less are hiding.
To find these affordable homes, the company analyzed listing data from the first week of June and identified cities with at least 100 total listings, excluding land and mobile homes. Then, the data team 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.
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In some cities, the team found that houses priced below $200,000 make up the majority of the listings. And most of those homes reside in the Midwest and South.
Where all the 200K homes are hiding
From Florida's suburbs to the Midwestern Rust Belt, the findings revealed that these regions are defying the national trend.
At the very top of Realtor.com’s list are two suburbs of Fort Lauderdale, Florida.
The first, Lauderdale Lakes, leads its rankings with 17 out of every 20 homes listed for less than $200,000. And coming in at No.2 is its 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.
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According to the research team, the towns are attractive because they're in a popular retirement destination but more affordable than other nearby Florida cities.
"Areas that were once popular for downsizing are now out of reach for many," said 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."
The team said It's worth noting that in both Florida cities, the housing stock is almost entirely condominiums.
South, Midwest see affordable housing
Outside of Florida, Albany, GA, a medium-sized city in the southwestern part of the Peach State, benefits from an overall lower cost of living.
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," Jones continued. "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, according to Realtor.com.
By sheer volume, the team found that Detroit has the most listings under $200,000, at 1,500-plus on the market in early June. Fixer-uppers are fairly standard in the Motor City, as it continues to see a broad revitalization.
Cleveland came next for the volume of sub-$200,000 home price tags, with more than 500 on the market.
Here’s a look at the full report.
Homes continue to increase in price
According to Realtor.com, 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 said.
For example, Detroit home prices are currently 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.
This story was reported from Los Angeles (where homes are not under $200K).