U.S. Home Prices Are Still High, but These 7 Cities Boast Tons of Listings Below $300K

Home prices and mortgage rates might be higher than most homebuyers find comfortable—but a new report has unearthed a few cities that can offer cash-strapped bargain hunters hope.

The Realtor.com® March monthly housing report has found that while listing prices have hit a median of $424,900 nationwide, seven metros still boast median home prices below $300,000. 

Homebuyers looking for these deals will not only find them in various parts of the country, from the Northeast to the South to the Midwest, but be greeted with a greater number of listings compared to last year. 

“Continuing into the spring homebuying season, prospective homebuyers will find more options compared with previous years, particularly more affordably priced homes,” says Realtor.com® economic data manager Sabrina Speianu. 

Where homebuyers can find homes under $300K

Among these seven cities with homes priced under $300,000, Birmingham, AL—where median prices rose by 4% annually to $290,000 in March—experienced the greatest growth in listings, with 27.6% more homes for sale this March versus this same month last year. 

The only under-$300,000 metro with an annual decline in housing inventory (of 4%) was Rochester, NY, where the median price rose by 8.7% to $277,000. 

All seven cities experienced price growth since last year, but given that the prices in these places were so low to begin with, they’re still a bargain hunters’ paradise. 

Here are the seven metro areas where home prices typically fall below $300,000, along with the median price for the area, how prices and inventory have changed over the past year, and a sample listing that’s recently gone up for sale—to give buyers a taste of what it’s like to live there. 

Birmingham, AL

Metro median list price: $290,000
Annual price change: +4%
Annual inventory change: +27.6%
2872 Norwood Blvd for sale for $279,900 

Buffalo, NY

Metro median list price: $270,000
Annual price change: +9.7%
Annual inventory change: +4.2%
714 Mount Vernon Rd for sale for $269,900

Cleveland, OH

Metro median list price: $227,000
Annual price change: +8.4%
Annual inventory change: +0.4%
3134 W 73rd St for sale for $220,000

Detroit, MI

Metro median list price:$238,000
Annual price change: +1.2%
Annual inventory change: +3.6%
1331 Cadillac Blvd for sale for $200,000

Pittsburgh, PA

Metro median list price: $240,000
Annual price change: +11.6%
Annual inventory change: +10.8%
141 Sheldon Ave for sale for $229,900

Rochester, NY

Metro median list price:$277,000
Annual price change: +8.7%
Annual inventory change: -4.0%
170 South Ave for sale for $250,000

St. Louis, MO

Metro median list price: $292,000
Annual price change: +4.7%
Annual inventory change: +14.2%
2328 Bellevue Ave for sale for $275,000

How affordable homes can help buyers save money

In a housing market plagued by high interest rates that have been hovering stubbornly in the mid-6% range for months, a growing number of lower-priced homes might be what this sluggish spring housing market needs to get moving. 

Nationwide, home prices inched upward by 0.2% in March compared to a year earlier. Yet despite the fact that home prices are basically flat, once you factor in today’s mortgage rates, this means the cost of financing 80% of the typical home in March rose by roughly $63 per month compared to last year. 

“This increased the required household income to purchase the median-priced home by $2,500 to $88,600, before accounting for the cost of tax and insurance,” explains Speianu.

For homebuyers who can’t stretch their budgets to meet this high bar, shopping in areas where homes are selling for under $300,000 can give them some much-needed wiggle room. 

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