Anna Marie Castiglioni Head of Strategy & Business Operations | realtors.com
After years of increasing home prices and high mortgage rates nearing 8% last October, the U.S. housing market shows signs of cooling, according to the Realtor.com September Housing Market Report. Mortgage rates remain elevated at approximately 6.32% for a 30-year fixed loan, with a median home price of $425,000 in September.
Despite this, certain areas in the Northeast and Midwest offer more affordable options. The report identifies five metropolitan areas where median home prices are below $300,000.
Rochester, NY stands out with a median home list price of $282,500—$143,000 less than the national median. James Yockel, CEO of the Greater Rochester Association of Realtors, attributes this to "purely supply-demand imbalance in action." New construction has significantly slowed in Monroe County from around 1,600 building permits annually in the early 2000s to just 400 today.
Yockel explains that New York's high tax burden also affects affordability: "Basically, a household has an amount of money they can spend on housing in their budget," he says. "In New York, a higher percentage of that budget goes to taxes."
Other cities with homes priced under $300K include Pittsburgh and Detroit. Pittsburgh's listings are viewed 1.5 times more than the U.S. average while Detroit's are viewed 1.2 times more.
The following cities have been highlighted for their affordable housing markets:
- **Pittsburgh, PA**: Median list price is $245,000.
- **Detroit, MI**: Median list price is $277,000.
- **Buffalo, NY**: Median list price is $277,450.
- **Rochester, NY**: Median list price is $282,500.
- **St. Louis**, MO: Median list price is $299,900.
These metros provide opportunities for prospective homeowners seeking affordability without compromising on quality.
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