Where, oh where are all the affordable homes? With the national median home price hovering around $415,000, weary buyers may feel like they have a better chance of finding a castle in the air.
But a new analysis from Realtor.com shows there are a handful of large cities where homebuyers can still make a purchase worth between $200,000 and $350,000. Even better: The number of homes for sale in this range increased more than 20% in February compared to the same time last year.
A “growth spurt” in homes priced under $350,000
Even with mortgage rates and home prices set to cool a bit this year, affordability will remain a challenge for the average buyer in 2024. As of last month, homebuyers need a household income of approximately $106,500 per year to afford the monthly mortgage payment on a plan. typical house, according to a recent report.
But Realtor.com’s analysis shows that circumstances aren’t so bad everywhere, and there are actually more affordable homes now than there were a year ago. The “growth spurt” of listings between $200,000 and $350,000 in February outpaced all other price categories.
The major metro areas with the largest share of listings in this price range are primarily found in the South, which now accounts for more than half of the affordable inventory available in the country, according to the Realtor.com report. The median for listings in this range is approximately $285,000, a full $130,500 less than the current national median.
Miami and Tampa, Florida saw the most growth in this range, even though median home prices in these cities are quite high, at $550,000 and $416,000, respectively. Florida is home to 18% of the nation’s supply of listings in the affordable price range, Realtor.com chief economist Danielle Hale said in the report.
What can homebuyers get in this range? Miami and Tampa offer mostly attached homes, i.e. condos, townhouses, and townhouses. Those looking for single-family homes can find affordable options in Texas, especially Dallas, San Antonio and Houston.
10 cities with the most affordable homes
Cities with the largest share of affordable homes are mostly found in the South. These are the 10 large cities with the largest number of listings between $200,000 and $350,000:
- Miami, Florida
- Dallas, TX
- Tampa, FL
- San Antonio, Texas
- Houston, Texas
- Orlando, Florida
- Atlanta, Georgia
- Oklahoma City, Oklahoma
- New Orleans, Louisiana
- Birmingham, Alabama
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