Home affordability is on the wane in America.

The budgets of many first-time and other would-be homebuyers have been blown away by mortgage rates topping 7% (the highest they’ve been since 2002), and home prices now ahead of where they were at the same time last year. The typical monthly payment for a median-priced home is now more than double what it was just three years ago.

But hold on, budget buyers—there’s still hope! It might sound fantastical, but there are still real estate markets where the majority of single-family homes for sale are priced at $250,000 or less. Thus, the crack data team at Realtor.com® set out to find the places where you can find the greatest number of these homes.

Why $250,000? At the current mortgage rate, and with a 20% down payment, homes priced at $250,000 will have a typical monthly payment of around $1,358, before property taxes and home insurance costs. That is an affordable amount for most Americans, and it lines up nicely with the general rule of thumb that households shouldn’t spend more than 30% of their annual income on housing.

Plus, we really like round numbers.

Nope, you won’t find Boston, Denver, or Seattle on this list. The metros still boasting plenty of budget-friendly homes on the market are mostly clustered in the Midwest and the South—reaffirming these regions’ champion status when it comes to housing affordability. But buyers should note that prices have been rising even in these last bastions of modestly priced real estate.

“While the housing market has gotten significantly less affordable nationally over the last few years, these pockets boast high concentrations of low-priced homes,” says Hannah Jones, senior economic research analyst at Realtor.com. “In general, Midwestern markets tend to be lower priced, which has led an uptick in demand in the region relative to the rest of the country.”

Fewer than 1 in 3 single-family homes was listed below the $250,000 threshold in August on Realtor.com. The median list price for a single-family home in the U.S. was $442,000 in August.

To find the places with the greatest percentage of single-family homes listed below $250,000, we reviewed Realtor.com data over the past 12 months. Only homes costing at least $50,000 were included in the analysis. This was done to exclude distressed properties that are sometimes listed for a very small price, such as $1 or $10,000, but come with specific contingent cash and spending requirements that aren’t reflected in the list price. We included only places where there were at least 1,000 total listings over the past year.

We also included only one metropolitan area per state to ensure geographic diversity. (Metros include the main city and surrounding towns, suburbs, and smaller urban areas.)

So let’s find these magical places where homebuyers can beat the odds and snag an affordable home of their own.

1. Flint, MI

Median home list price: $110,000
Percentage of listings priced below $250,000: 92.8%

Some of the most affordable homes in the country can be found in Flint, a city with a rich history but marked most recently by a water crisis that began almost a decade ago. Fixes to the city’s infrastructure are attributed with bringing the water’s lead levels back into federal compliance, though the topic remains contentious.

Efforts to revitalize the city have been mounted in recent years, with new initiatives promising billions of investment dollars.

For home shoppers looking for some of the most affordable real estate in the country, Flint offers that in spades. More than 90% of homes for sale fall below the $250,000 mark.

A median-priced, single-family home in Flint, at $110,000, would currently take only a $700 monthly payment, with a 20% down payment, before taxes and insurance.

This three-bedroom, two-bathroom ranch on a quarter-acre is coming onto the market at just below $175,000.

2. Youngstown, OH

Median home list price: $120,000
Percentage of listings priced below $250,000: 91.2%

Across Lake Erie, our next affordable home mecca is another Midwestern industrial pillar of the 20th century. As the steel industry ebbed in Youngstown, the city’s population dwindled, now at less than half of what it was during the 1960s. That’s left more homes than there are buyers to absorb them, keeping prices lower here than in other parts of the country.

Homes in Youngstown cost about half as much as those in Pittsburgh, just an hour to the southeast. That’s one of the reasons home shoppers who have more flexibility to work remotely or have hybrid schedules are looking at homes farther from the densely populated urban cores.

Local real estate agent Al Cerritelli has worked with many Pittsburgh buyers.

“They think this is a very attractive area,” says Cerritelli, of Howard Hanna Real Estate Services. “The commute isn’t that far, and the cost of living is so much lower.”

Cerritelli says he saw people coming from other, pricier areas of the country, too, including New York, California, and New Jersey.

And even while Youngstown prices are a quarter of the national average, Cerritelli notes that they have been rising here because of the affordability-driven demand. Prices have increased about 20% in the past two years and about 50% since before the COVID-19 pandemic.

3. Rockford, IL

Median home list price: $152,000
Percentage of listings priced below $250,000: 86.5%

About 90 minutes northwest of Chicago, just a few miles from the Wisconsin border, is Rockford. Homes in this Midwestern metro are about one-third of the national average, with only 1 in every 7 single-family homes priced above $250,000.

Like the first two cities on our list, Rockford has a rich industrial history, including the automotive, aviation, and aerospace industries. But the metro also specialized in fastener production in the 20th century, earning it the nickname “Screw Capital of the World.”

But perhaps the most endearing fact about Rockford is that it was the home of the Rockford Peaches, the real-life women’s baseball team immortalized in the 1990s movie “A League of Their Own,” which starred Tom Hanks, Geena Davis, and Madonna.

In Rockford’s northeastern suburbs, a 2,000-square-foot, three-bedroom house with a two-car garage goes for just shy of $190,000.

4. Syracuse, NY

Median home list price: $159,900
Percentage of listings priced below $250,000: 83.8%

A historical and economic anchor of central New York state, Syracuse sits near the eastern end of Lake Onondaga. Home to the eponymous Syracuse University, the city houses a large population of students, and the school helps drive the local economy.

Health care and electronics manufacturing make up another large portion of the local economy, and Micron announced it is bringing a “megafab” manufacturing facility to the area.

“It’s potentially 40,000 new jobs in the next 10 years,” says James Camperlino, a land developer and the owner of Eagan Real Estate Inc. in Syracuse. “And there’s already a lot of upward pressure on prices at the moment because we don’t have enough housing, even now.”

Camperlino says Syracuse has never really had booms and busts, and that the housing market here has generally been stable.

“But that’s starting to change now,” he says. “We’re turning into a significant boom town.”

5. Anderson, IN

Median home list price: $177,000
Percentage of listings priced below $250,000: 82.8%

About 40 miles northeast of Indianapolis, about halfway to Muncie, is Anderson. The city of about 54,000 is a place where homebuyers will still find at least 8 out of every 10 single-family homes priced below $250,000.

Nearby Indianapolis is also known for its affordability, with the median single-family home list price of $274,950 in August, but Anderson is even more affordable, with single-family homes listed for around 35% less.

Right now, home shoppers can find a four-bedroom new build for $237,000 or a 2,100-square-foot, two-bedroom house for $129,000.

6. Florissant, MO

Median home list price: $180,000
Percentage of listings priced below $250,000: 81.4%

Florissant is another Midwestern city of about 50,000, where the automotive industry once reigned but has since retreated.

Located on the northern end of the St. Louis metropolitan area, Florissant sits near where the Mississippi and Missouri Rivers converge. It’s also next to Ferguson, MO, an area that became engulfed in strife, protests, and riots after the 2014 police killing of Michael Brown, an unarmed, 18-year-old Black man.

The city was founded by French settlers in the late 1700s, who originally named the city Fleurissant, which means “in bloom” in French. In that spirit, the city holds an annual Valley of Flowers Carnival in the spring.

This four-bedroom, two-bathroom, brick split-level house is on the market for $185,000.

7. Lawton, OK

Median home list price: $161,000
Percentage of listings priced below $250,000: 79.9%

This city of about 91,000 in Southwestern Oklahoma is not far from the Texas border. Lawton is a military city, as it abuts Fort Sill, the Army’s famous artillery grounds. Typically, cities next to a military base have more affordable homes and stable housing markets.

It’s also located near the Wichita Mountains, which means locals have access to hiking, biking, camping, and kayaking around the sprawling wilderness area, which includes a wildlife refuge where people can find bison, elk, and wild turkey.

Buyers can find this four-bedroom, two-bathroom, brick house with a two-car garage on nearly an acre for $240,000.

8. North Little Rock, AR

Median home list price: $155,000
Percentage of listings priced below $250,000: 78.9%

North Little Rock is like the little sister to Little Rock, separated by just the Arkansas River running between the two cities. However, it was once called Argenta, a name now reserved for the city’s downtown arts district.

North Little Rock is about one-third the size of Little Rock, and homes there are about 20% less expensive, making it even more affordable than the already budget-friendly area.

The city is also home to the Big Dam Bridge, the “longest pedestrian and bicycle bridge in North America, built specifically for that use,” spanning 4,226 feet, across the Murray Dam.

This three-bedroom, two-bathroom, brick house, built in 2005, is priced at just below $240,000.

9. Milwaukee, WI

Median home list price: $179,900
Percentage of listings priced below $250,000: 78.2%

The world-famous Brew City and hometown of America’s beloved TV bottle-cappers Laverne & Shirley still offers buyer-friendly home prices, including lots priced below the $250,000 mark.

Situated on the western shore of Lake Michigan, Milwaukee is known for its snowy, lake-effect winters.

But Milwaukee’s warm summers are even more festive. That’s when residents and visitors enjoy the city’s annual cultural events, from the enormous music festival aptly called Summerfest to the Milwaukee German Fest, which celebrates the area’s strong German immigrant heritage.

It’s also home to more than a dozen public and private colleges, which means a significant student population keeps the city feeling young.

This charming four-bedroom home with 1.5 baths is listed for $179,900.

10. Jackson, MS

Median home list price: $153,900
Percentage of listings priced below $250,000: 77.3%

Last is Jackson, the capital of Mississippi and a longtime favorite market when it comes to affordability.

This Central Mississippi city of about 150,000 residents is one of the largest on our list, and it has a vibrant culture. Jackson is known for its jazz, blues, and gospel music scenes and is host to the Jackson Rhythm and Blues Festival held every August.

Home shoppers in Jackson can find a three-bedroom home with a two-car garage for just $130,000. A three-bedroom, two-bathroom, white ranch can be found for just under $100,000.

The post Bargain Buys: The 10 U.S. Cities With the Most Homes Priced Below $250K appeared first on Real Estate News & Insights | realtor.com®.