Why Affordable Housing Still Exists in the U.S.

Buying a home in the United States feels impossible for many people today. With median home prices soaring, many first-time buyers wonder if they will ever afford their dream home. In 2024, the housing market saw prices continue to rise, making it harder for people to buy a house without a massive mortgage.

But here’s the good news! affordable housing still exists. Some cities have low housing costs, allowing buyers to buy a home without drowning in debt. These places offer not just cheap homes but also a low cost of living, solid job markets, and growing communities.

If you are looking for an affordable place to live, you still have options. These most affordable places to buy a house prove that smart choices still exist. Let’s explore why some cities remain budget-friendly despite the nationwide price hikes.

The Rising Cost of Homes in the U.S.

In 2025, the housing market continues to challenge buyers. The median home price across the U.S. has reached an all-time high, pushing many people to look for the cheapest places to settle. The median home price across the U.S. has reached an all-time high, pushing many people to look for the cheapest places to settle. Therefore, many of them are turning to the cheapest places to buy a house in the US, where homeownership still feels possible.

• The national median household income hasn’t kept up with rising home prices, making it harder for families to buy.
• High mortgage rates mean higher monthly payments, increasing the total cost of living.
• Cities with strong job markets and major amenities tend to have the highest housing costs, making them unaffordable for many buyers.

Despite these challenges, some places still offer homes at affordable prices. These cities have a low cost of living, making them ideal for first-time buyers and families looking for a fresh start.

What Makes These Cities Affordable?

So, why are some cities still affordable places to live while others are getting more expensive? Several key factors play a role:

1. Lower Demand – Some cities don’t have the same population growth as big metro areas, keeping housing costs low.
2. Strong Local Job Market – Cities with steady industries but fewer high-salary jobs often have cheaper home prices.
3. Cost of Living – Everything from groceries to taxes affects affordability. In cheapest states, people spend less on daily expenses.
4. Government Incentives – Some states offer programs to help homebuyers get into the market with lower mortgage payments.

If you’re looking for an affordable state to buy in, these cities may be your best bet. They provide a low cost of living while still offering great amenities and job opportunities.

Most Affordable Places to Buy a House

Who Should Consider Buying in These Cities?

Not everyone wants to live in a big, expensive city. These affordable places to live are perfect for:

• First-time homebuyers looking to buy without a massive mortgage loan.
• Retirees wanting a quiet, budget-friendly place to settle.
• Investors interested in real estate without high housing costs.
• Remote workers seeking a low cost of living while keeping their current job.

The 10 Most Affordable Cities to Buy a House in 2025

Not every city in the United States comes with high housing costs. Some places still offer homes at affordable prices, making it possible for buyers to get a home without spending their entire household income.

Below, we’ll look at ten cities where you can still find affordable housing options in 2025. These places not only have a low cost of living but also offer good job opportunities and essential amenities for a comfortable life.

Springfield, Illinois – The Budget-Friendly Capital with Rich History

Springfield, the capital of Illinois, is best known for its deep historical roots, being the birthplace of Abraham Lincoln’s political career. But beyond its rich heritage, Springfield stands out for its low housing costs and affordable lifestyle.

This city offers spacious homes at a fraction of the price you’d pay in larger metro areas. It has a balanced economy, with government jobs, healthcare, and education making up most employment opportunities. The local cost of living is significantly lower than in major U.S. cities, making it an excellent choice for first-time buyers.

• Median home price: $85,000 – $100,000
• Cost of living: 20% lower than the national average
• Job market: Government, healthcare, and manufacturing are key industries
• Best for: Families, first-time homebuyers, and retirees

Springfield is a city that offers both affordability and stability, making it one of the best places to buy a home in 2025.

Akron, Ohio – A Hidden Gem for Affordable Living

Located in northeastern Ohio, Akron has transformed from an industrial powerhouse into a modern, affordable city with a diverse job market and low housing costs. Once known as the “Rubber Capital of the World,” Akron is now home to healthcare, education, and technology industries, making it a great place for professionals looking to settle without breaking the bank.

Akron is also famous for its vibrant downtown, parks, and cultural attractions, offering the best of both city life and suburban affordability. Unlike other Ohio cities like Columbus and Cleveland, Akron offers significantly lower housing costs, making homeownership more attainable.

• Median home price: $80,000 – $100,000
• Cost of living: Nearly 20% lower than the national average
• Job market: Growing in healthcare, education, and manufacturing
• Best for: Homebuyers looking for affordability near major metro areas

If you’re looking for a low-cost city with strong job prospects, Akron is one of the best places to buy a home in 2025.

Erie, Pennsylvania – Lakefront Living at an Unbeatable Price

If you’ve ever dreamed of lakefront living but assumed it was too expensive, Erie, Pennsylvania, proves otherwise. Located along Lake Erie, this city offers economical housing options with breathtaking water views.

Erie’s economy is steadily growing, particularly in healthcare, manufacturing, and tourism. The cost of living is among the lowest in the state, making it a great pick for those who want affordability without sacrificing quality of life. With access to Presque Isle State Park, Erie is a dream spot for outdoor lovers who enjoy boating, fishing, and hiking.

• Median home price: $75,000 – $95,000
• Cost of living: Lower than 80% of U.S. cities
• Job market: Healthcare, education, and tourism industries are growing
• Best for: Retirees, outdoor enthusiasts, and remote workers

For those seeking an affordable place to live with a laid-back lifestyle, Erie is one of the best choices in 2025. It offers some of the most affordable homes in the US, right by the lake.

Detroit, Michigan – A City on the Rise with Bargain Homes

Detroit is a city of comebacks. Once struggling with economic downturns, Detroit has been making a strong comeback with massive revitalization efforts and new job opportunities. Today, it’s one of the cheapest major cities in the United States where you can still find homes under $100,000.

The automotive industry is still a major player, but Detroit is also growing in technology, healthcare, and small business startups. Many historic homes are available at affordable prices, giving buyers a chance to invest in real estate in a city that’s on the rise.

• Median home price: $60,000 – $90,000
• Cost of living: One of the lowest among major metro areas
• Job market: Automotive, technology, and startup sectors are expanding
• Best for: Investors and buyers looking for long-term appreciation

With its rich culture, music scene, and economic revival, Detroit is one of the best places to buy a home in 2025, especially for those looking to invest in a growing real estate market.

Rochester, New York – Affordable Living in the Empire State

Finding an affordable home in New York is rare—but Rochester is one of the few cities where home prices are still within reach. Known for its strong education sector, tech industry, and healthcare system, Rochester provides a high quality of life without the sky-high cost of living found in New York City.

Rochester has a tight-knit community, plenty of parks, and a growing job market. It’s also home to the Rochester Institute of Technology and the University of Rochester, making it an attractive spot for young professionals and families.

• Median home price: $90,000 – $110,000
• Cost of living: Well below New York’s major cities
• Job market: Strong in healthcare, tech, and education
• Best for: Families, young professionals, and students

Toledo, Ohio – The Glass City with Affordable Homes

Toledo is one of the most budget-friendly cities in Ohio, offering home prices that are significantly lower than the national average. Once a major hub for glass manufacturing, Toledo has grown into a diverse economy with strong healthcare, automotive, and education sectors.

Toledo is also known for its riverfront beauty, historical sites, and cultural attractions like the Toledo Museum of Art. It provides big-city amenities without the high cost of living found in larger Ohio cities like Columbus or Cincinnati.

• Median home price: $85,000 – $100,000
• Cost of living: 13% lower than the U.S. average
• Job market: Growing in healthcare, manufacturing, and logistics
• Best for: First-time homebuyers, retirees, and remote workers

If you’re looking for an affordable place to live with a low cost of living, Toledo is an excellent choice in 2025.

Cleveland, Ohio – Affordable Living with Big-City Perks

Cleveland is one of the best-kept secrets when it comes to affordable home buying. With a rich history in industry and innovation, Cleveland is now a thriving city with strong sectors in healthcare, finance, and education. Some of the other cities where you can find economical housing are, Indianapolis, Louisville  and Oklahoma City.

Cleveland offers some of the cheapest places to buy a home while still providing big-city attractions like the Rock & Roll Hall of Fame and world-class sports teams. Certain neighborhoods are seeing revitalization efforts, making it a great city for both homebuyers and investors.

• Median home price: $90,000 – $110,000
• Cost of living: 11% below the national average
• Job market: Healthcare, finance, and technology are leading sectors
• Best for: Young professionals, investors, and families

With affordable housing, a growing economy, and strong job opportunities, Cleveland remains one of the best places to buy a home in 2025.

Decatur, Illinois – Small-Town Living with Big Savings

For those seeking low housing costs and a quiet lifestyle, Decatur, Illinois, offers one of the best economical housing options in the Midwest. Known as the “Soybean Capital of the World”, Decatur has a strong agriculture and manufacturing-based economy.

Despite being a smaller city, Decatur has plenty of amenities, including parks, golf courses, and a strong sense of community. The cost of living is incredibly low, making it a perfect place for retirees and first-time homebuyers.

• Median home price: $70,000 – $95,000
• Cost of living: One of the lowest in Illinois
• Job market: Manufacturing, logistics, and agriculture are key industries
• Best for: Retirees, budget-conscious buyers, and small-town lovers

If you want an affordable home with a low mortgage payment, Decatur is a fantastic option in 2025. It’s often ranked as one of the cheapest place to buy a home in the Midwest.

Peoria, Illinois – A Midwestern Gem with Affordable Homes

Peoria, located along the Illinois River, is one of the cheapest places to buy a home while still offering a strong job market and a good quality of life. It’s also listed among the cheapest places to buy houses in USA, making it a smart pick for budget-conscious buyers. Known for being the headquarters of Caterpillar Inc. Peoria has a stable economy and offers economical housing options across multiple neighborhoods.

Peoria also has a thriving arts scene, beautiful riverfront views, and great parks, making it a great place to settle. Unlike major metro areas, Peoria has a low cost of living, meaning your household income stretches further.

• Median home price: $80,000 – $100,000
• Cost of living: 16% lower than the national average
• Job market: Manufacturing, healthcare, and engineering sectors are strong
• Best for: Families, working professionals, and first-time buyers

If you’re looking for economical housing in a Midwestern city with job security, Peoria is one of the best picks for 2025.

Macon, Georgia – Southern Charm with Low Housing Costs

Macon, Georgia, is one of the most affordable cities in the Southeastern United States, offering a low cost of living and budget-friendly home prices. It also has some of the most affordable real estate in US for buyers seeking long-term value. With a rich musical history (known as the birthplace of Otis Redding and Little Richard), Macon combines Southern culture that boast affordability.

Macon is also home to Mercer University, which adds to its thriving economy and real estate market. The city has been growing, but home prices have remained some of the lowest in the region.

• Median home price: $85,000 – $105,000
• Cost of living: 15% below the national average
• Job market: Healthcare, education, and retail sectors are expanding
• Best for: Young professionals, retirees, and those seeking a slower pace of life

Key Considerations When Buying a Home in an Affordable City

Buying a home in a city with low housing costs can be a great investment, but it’s important to look beyond the sale price. While these affordable places to live offer great opportunities, buyers should consider several key factors to ensure they make the right choice.

H3: Researching the Best Neighborhoods

Even in the cheapest states to buy a house, not all neighborhoods are the same. Some areas may have high crime rates, declining job opportunities, or a lack of essential amenities. To make the best choice, consider:

• Crime rates – Check local crime reports to ensure the neighborhood is safe.
• School ratings – Even if you don’t have kids, living near good schools can increase property value.
• Job market strength – A city with strong housing affordability, job opportunities and a growing economy is a better long-term investment.
• Public services & amenities – Look for hospitals, grocery stores, and public transportation nearby.

Using resources like Zillow and local government websites can help you find the best areas in these affordable cities. Working with a local real estate agent can also give you insights into neighborhoods that fit your lifestyle and budget.

Cost of Living vs. Home Prices

A cheap house doesn’t always mean affordable living. Some cities have low housing costs but high property taxes, expensive utilities, or costly transportation These hidden costs can quickly raise your monthly mortgage burden if not considered early.

Before moving, factor in:

• Property taxes – Some states, like Illinois and New York, have higher taxes that can add to your monthly expenses.
• Utilities & insurance – Costs for electricity, water, and homeowner’s insurance vary by location.
• Transportation costs – If public transportation is limited, you may need to factor in gas and car maintenance.

By comparing the total cost of living, buyers can ensure they are making a smart financial decision.

Investment Potential in These Cities

Many of the cities listed in this article are prime locations for real estate investing. They offer some of the least expensive real estate in US, making them attractive for both new and seasoned investors. Before investing, it’s smart to check your credit score, since it can affect your loan approval and interest rate. Whether you’re looking for a rental property or a home that will increase in value, these affordable cities offer:

• Rising demand – Many of these cities are experiencing growth and revitalization, which can boost home values.
• Low-cost entry into real estate – Buying in an affordable state allows investors to enter the housing market with a lower mortgage payment. Working with a local lender can also help buyers find flexible financing options suited to their budget.
• Short-term and long-term rental potential – Cities like Detroit, Toledo, and Cleveland are attracting renters and young professionals, making them good rental markets.

If you’re thinking about real estate investing, these economical housing markets could be a great opportunity in 2025.

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Final Thoughts on Affordable Home Buying in 2025

While home prices continue to rise across the United States, there are still affordable places to live where buyers can own a home without taking on an overwhelming mortgage payment.

The cities highlighted in this article offer low housing costs, a reasonable cost of living, and job opportunities, making them great options for first-time buyers, retirees, and investors. These are among the most affordable places to buy a house in today’s market.

Before making a purchase, be sure to research neighborhoods, calculate the total cost of living, and consider long-term investment potential. Buying a home in an affordable city can be one of the best financial decisions you make in 2025—if you choose wisely. The right choice can set you up for long-term success as a homeowner.

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