27 Cheapest Housing Markets in the US

Zarah Hamid
9 min read

In This Article:

In this article, we will be covering the 27 cheapest housing markets in the US. If you wish to skip our detailed analysis, you can move directly to the 5 Cheapest Housing Markets in the US.

The US Housing Market at a Glance

Homeowners in the US continue to be victims of the mortgage lock-in effect where high rates stop them from selling their houses thereby reducing supply. Amidst the spring homebuying season in which the housing supply still remains restricted, an opportunity has been witnessed. As reported by CNBC on April 26, would-be homebuyers are seeing an opportunity in new construction. This is because these new homes tend to offer more incentives and are not limited as compared to existing homes.

Buyers are also getting motivated to consider the new home sales market through incentives including rate buy-downs and price cuts. The month of March saw the sale of 693,000 new single-family houses thereby recording a year-over-year rise of 8.3%. At the same time, existing home sales went down by 3.7% year-over-year. In terms of price, the median price for a new home has been nearly 4% higher than that for an existing home. Although buyers who were price conscious used to take into account only the existing homes market, the market of new homes tends to offer them more options. You can also take a look at some of the best states for first-time homebuyers.

Regional Analysis of the Homebuying Market

According to a report by Zillow, home values have climbed in 47 of the 50 largest US metro areas. The highest annual price increases have been recorded at 12.7% for Hartford, 11.8% for San Diego, 11.2% for San Jose, 9.5% for Boston, and 9.3% for Los Angeles. Some of the least affordable metros for homebuyers in the US have been previously discussed. On the contrary, home values have dropped in New Orleans by 7.6%, in Austin by 4.1%, and in San Antonio by 1.9%. New construction in the South such as in Florida and Texas has been capable of catering to the buyer demand which has helped control the rapid price appreciation. Regarding this, you can view the most underpriced housing markets in the US in 2024.

In terms of housing supply, total inventory has grown annually in 36 of the 50 largest US markets. In this regard, the highest increases have been recorded for Tampa at 38%, Dallas at 37.8%, and Orlando at 33.2%. New listings have climbed in San Jose by 18.4%, in Dallas-Fort Worth by 16.6%, and in Tampa by 15.4%. Simultaneously, new listings have declined in Boston by 17.2%, in Pittsburgh by 14.2%, and in Washington D.C. by 13.6%.

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