The American Dream of homeownership seems increasingly elusive for many would-be buyers. Since the onset of the COVID-19 pandemic, home prices in the United States have been on a relentless upward trajectory, leaving a growing number of everyday Americans priced out of the housing market. With the average home price having surged an astonishing 47.1% since 2020, the median sale price now stands at a staggering $394,000, according to the latest data from Redfin. Just a few years ago, finding a house at around $200,000 was a fairly common experience, but now, it feels like searching for a unicorn.
Over the past several years, the proportion of homes sold under the $200,000 mark has plummeted from roughly half of all sales to less than a quarter in 2023, as per Realtor.com. This sharp decline has left many potential homebuyers in despair, feeling as though the dream of owning a home is slipping further out of reach. This phenomenon has spurred a renewed interest in identifying where affordable homes can still be found.
Interestingly, some pockets of the country still offer a glimmer of hope for those hunting for affordable homes. According to research conducted by a leading real estate agency, there are several areas where properties under $200,000 are still a significant part of the market. For instance, one area boasts a median list price of $149,350, with an impressive 85% of its 239 listings priced below the $200,000 threshold. Another area, with a median list price of $175,000, has 404 homes—70% of its listings—under $200,000. These figures provide a rare beacon of hope for potential homeowners.
Continuing this trend, a surprising market exists with a median list price of just $90,000. This area features 1,586 listings, with 64% of them under $200,000, making it a standout option for bargain hunters. Another attractive locale has a median list price of $161,194, with 213 of its listings, or 68%, priced below $200,000. Similarly, an area with a median list price of $104,000 offers 245 listings under the $200,000 mark, accounting for 64% of its total listings.
In yet another affordable haven, the median list price hovers around $143,950, and 133 homes, or 68% of the listings, fall under the $200,000 range. Following closely is a market with a median list price of $164,950, offering 153 homes, or 66% of its listings, below the $200,000 threshold.
While these affordable pockets provide some respite, the broader trend of escalating home prices and the shrinking availability of affordable options continue to pose significant challenges for many Americans. The market’s shift has made it increasingly difficult for average buyers to find homes within their financial reach, and home foreclosures nationwide are on the rise once again. For those who have not yet given up the hunt, these affordable markets offer a glimmer of hope amidst a landscape defined by soaring prices and dwindling options.