Affordable Homes in 2024: Where to Find Properties Under $200,000

Finding an affordable home in 2024 may seem daunting, but a new report from Realtor.com reveals that home sales under $200,000 are still possible—you just need to know where to look.

Rising Home Prices and the Impact of Interest Rates

Following the COVID-19 pandemic, housing prices skyrocketed and have not yet stabilized. The average U.S. home is now valued nearly 50% higher than it was four years ago. This significant increase, coupled with current high interest rates, has substantially impacted monthly mortgage payments, making homeownership less affordable for many. Over recent years, the proportion of homes sold for less than $200,000 has plummeted from about half of all sales to less than a quarter in 2023.

Finding Affordable Homes

Realtor.com’s data team embarked on a mission to find these elusive affordable homes. They analyzed listing data from the first week of June, focusing on cities with at least 100 total listings, excluding land and mobile homes. The team then ranked these cities based on the number of listings priced below $200,000 and how these figures compared with the overall number of homes for sale in those metros.

Cities with Affordable Housing

The analysis revealed that houses priced below $200,000 are predominantly located in the Midwest and South, with some cities defying the national trend by offering more affordable options.

Top Affordable Cities

1. Lauderdale Lakes, Florida: This city tops the list with 17 out of every 20 homes listed for less than $200,000. The median home price here is $149,000. Lauderdale Lakes offers a high proportion of affordable condominiums, making it an attractive option for retirees and those looking to downsize.

2. Lauderhill, Florida: Close behind, Lauderhill has a median home price of $175,000. Like its neighbor Lauderdale Lakes, Lauderhill is popular due to its affordability in a desirable retirement location.

Additional Affordable Regions

• Albany, Georgia: Known for its lower cost of living, Albany offers housing that is 40% less expensive than Atlanta. This medium-sized city in southwestern Georgia provides great value for homebuyers.

• Detroit, Michigan: With over 1,500 listings under $200,000, Detroit offers many fixer-uppers amid its broad revitalization efforts. The city has a substantial inventory of affordable homes, making it a top choice for budget-conscious buyers.

• Cleveland, Ohio: Cleveland follows Detroit with more than 500 homes priced under $200,000. The city's affordability has made it a focal point for those seeking lower-priced housing options.

Regional Trends

The South and Midwest regions are experiencing a notable increase in affordable housing inventory. Cities like Albany, GA, and areas in Florida demonstrate that affordable homes are still available in these regions despite the national trend of rising prices.

The Future of Affordable Housing

Realtor.com advises potential buyers to act quickly, as these affordable markets might not remain so for long. For example, Detroit home prices have increased by over 10% compared to last year, while Cleveland has seen prices grow by more than 20%. The ongoing demand and limited supply are likely to drive prices up further.

Insights from Experts

Hannah Jones, a senior economic analyst at Realtor.com, highlighted that areas once popular for downsizing are now out of reach for many due to rising prices. However, affordable markets like Lauderdale Lakes are seeing a surge in available condos, offering viable options for those looking to downsize without breaking the bank.

Advice for Homebuyers

For prospective homebuyers, experts suggest that now is the time to buy if it is financially feasible. The current market conditions, with relatively affordable prices in specific regions, present a unique opportunity. Buyers should leverage these opportunities before the markets catch up with the broader national trends of rising prices.

Conclusion

Despite the challenges of rising prices and high interest rates, affordable homes under $200,000 can still be found, particularly in the Midwest and South. Buyers should stay informed, act quickly, and explore all available options to find housing that meets their needs and budget. For a detailed look at the data and additional insights, refer to the full report from Realtor.com.