Amid sky-rocketing prices, can you get affordable homes under $300K in US cities? Check details

Despite home prices continuing to outpace the budgets of many Americans, there are still major US cities where the average price is under $300,000. According to Realtor.com research, there are more than 140 locations across the US where the median listing price sits at $300,000 or less, including several major metros that offer affordability and modern metropolitan amenities.

“The majority of these cities are in the South or Midwest,” explains Hannah Jones, senior economic research analyst at Realtor.com. "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)."

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Looking for homes under $300K in US?

While most U.S. homebuyers are grappling with steep prices and historically high mortgage rates, recent data from Realtor.com reveals that there are still areas across the country where homes are available for under $300,000.

Before the COVID-19 pandemic, the median price of a typical U.S. home was below $300,000. Today, that figure has soared. According to the latest data from Redfin, the median home price in April was $437,864—an increase of 1.3% compared to the same time last year.

This surge in prices, driven by a pandemic-fueled buying spree and a long-standing housing shortage, has made homeownership increasingly out of reach—especially for first-time buyers. High mortgage rates have only added to the pressure.

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The National Association of Realtors (NAR) estimates that to close the current affordability gap, the U.S. housing market needs:

367,000 more listings priced at or below $170,000,

416,000 more under $255,000, and

364,000 more priced below $340,000.

These numbers underscore the urgent need for more affordable housing options nationwide.

According to the company's report, the most affordable cities in the U.S. are largely located in the Midwest and the South. Among the 145 cities surveyed where the average home price is $300,000 or less are several major urban centers, including Detroit, St. Louis, Memphis, Baltimore, Indianapolis, and Pittsburgh.

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Most affordable US cities to buy a home for $300k or less

Among the biggest cities with the most affordable home prices are:

Detroit, MI ($109,000)
Birmingham, AL ($181,500)
St. Louis, MO ($199,999)
Memphis, TN ($218,200)
Baltimore, MD ($249,900)
Lubbock, TX ($249,975)
Indianapolis, IN ($268,500)
Pittsburgh, PA ($274,900)
Decatur, GA ($279,000)
Kansas City, MO ($281,250)
Oklahoma City, OK ($285,855)
Louisville, KY ($289,900)
Tulsa, OK ($289,900)
Baton Rouge, LA ($289,945)
Philadelphia, PA ($289,999)
El Paso, TX ($295,000)
Columbus, OH ($295,900)
Clearwater, FL ($299,250)
Jacksonville, FL ($299,900)
Myrtle Beach, SC ($299,900)
Ocala, FL ($299,999)
San Antonio, TX ($300,000)

Some cities saw a sharp rise in home values during the pandemic. And while prices in these areas may still be lower than those in the country’s most expensive metro regions, they can remain out of reach for local residents.

Realtor.com reports that a typical monthly payment on a Detroit home—priced at the city’s median list of $109,000—would be about $762 for a 30-year fixed mortgage at a 6.8% interest rate. This estimate includes taxes, insurance, and interest, assuming a 20% down payment of $21,800.

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Affordable housing options are still hard to come by along the East Coast, especially in the Northeast where shortages persist. However, buyers may still find homes priced under $300,000 in cities like Philadelphia, Pittsburgh, and Baltimore.

During the pandemic, home values surged in several cities. Although prices in these areas may still trail those in the nation’s most expensive metro markets, they often remain unaffordable for many local residents.

According to Realtor.com, the median listing price for a home in Detroit is $109,000. Based on a 30-year fixed mortgage at a 6.8% interest rate—and assuming a 20% down payment of $21,800—the typical monthly cost, including taxes, insurance, and interest, comes to about $762.

Finding affordable housing continues to be challenging along the East Coast, particularly in the Northeast, where inventory remains tight. Still, buyers may uncover properties under $300,000 in cities such as Philadelphia, Pittsburgh, and Baltimore.