As home prices and interest rates remain stubbornly high, the path to homeownership has become increasingly difficult for many Americans. (While mortgage rates have dropped some, they are still hovering near the 7% mark on average.) First-time buyers, in particular, are feeling squeezed as they are caught between limited inventory and monthly payments that could really strain their budgets.
Despite these hurdles, some cities still offer relatively affordable home prices when compared with the national average, which hovered at nearly $400,000 in February 2025. In fact, a new report from Realtor.com shares 20-plus cities that have average home prices of $300,000 or less. Read on to find out which cities are great options for home buyers right now.
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What’s the methodology of the new research?
To determine the most affordable metro areas across the U.S., Realtor.com economists looked at city-level data from May 2025 in places where the median price of a home was $300,000 or lower and where there were at least 1,000 for-sale listings. The data showed 22 cities spread across 15 states where home prices are far lower than the national average.
Why are homes in these areas more affordable?
There are two main factors that make homes in these 22 cities more affordable. The first is increased housing inventory, as the more homes that are available, the more affordable they tend to be (think the old rule of supply and demand), as shown in Realtor.com’s Housing Affordability and Supply report.
The other factor is location. “The majority of these [affordable] cities are in the South or Midwest,” explained Hannah Jones, senior economic research analyst at Realtor.com, in the press release about the report. “These regions tend to offer more affordable homes as they have generally more space to grow and lower demand than a high-density city (such as New York or Boston).”
Where can you still buy homes for $300,000 or less?
Turns out that there are many places throughout the U.S. where you can buy a home for $300,000 or less, including major cities like Detroit, Baltimore, Indianapolis, Pittsburgh and Memphis. “Some of these cities, such as Detroit or Baltimore, have gone through challenging periods,” Jones said. “However, recent investment and growth have put them back on the map as appealing, affordable places to put down roots.”
Even popular Florida and Texas metro areas, which are desirable for first-time buyers and retirees alike, have affordable housing options, according to the report.
Here’s the full list of cities where you can buy a home for $300,000 or less, from least expensive to most:
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Detroit: $109,000
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Birmingham, Alabama: $181,500
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Saint Louis: $199,999
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Memphis: $218,200
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Baltimore: $249,900
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Lubbock, Texas: $249,975
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Indianapolis: $268,500
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Pittsburgh: $274,900
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Decatur, Georgia: $279,000
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Kansas City, Missouri: $281,250
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Oklahoma City: $285, 855
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Louisville: $289,900
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Tulsa: $289,900
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Baton Rouge, Louisiana: $289,945
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Philadelphia: $289,999
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El Paso, Texas: $295,000
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Columbus, Ohio: $295,900
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Clearwater, Florida: $299,250
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Jacksonville, Florida: $299,900
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Myrtle Beach, South Carolina: $299,900
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Ocala, Florida: $299,999
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San Antonio: $300,000
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Sources:
- Bankrate: “Median home prices in every state”
- Realtor.com: “REVEALED: Places Across the U.S. Where You Can Still Buy a Home for $300K or Less—Including 22 Major Cities”
- Realtor.com: “Housing Affordability and Supply: Rising Inventory, but for Whom?”