These are the Most Affordable Cities to Buy a House in 2022
In these twenty U.S. cities, the price is right for homebuyers on a budget this year.
It’s no secret that buying a house is not an easy feat in today’s red-hot real estate climate. The unprecedented demand for homes has led to increased prices, heightened buyer competition, and lightning-fast sales. In some uber-competitive U.S. cities, homes are spending an average of just 34.7 days on the market before being sold, according to a recent Insurify analysis. Demand is high, so many prospective buyers should anticipate shelling out more than anticipated on a new home.
However, not all homebuyers are breaking the bank to secure the home of their dreams. Certain U.S. cities are currently offering prospective buyers a trifecta of affordability, proximity to metropolitan amenities, and overall quality of life. Homebuyers across the country can benefit from opening their prospecting horizons to these likely underrated markets, where they may find the perfect house that exceeds its price tag’s expectations. To see the best spots for homebuyers on a budget to shop around, the research team at Insurify referred to national real estate statistics from Realtor.com to identify the most affordable cities to buy a house in 2022.
Insights
- National averages. Across the 382 cities surveyed, the average median home listing price as of January 2022 is $395,323. The average median price per square foot is $217, and the average number of days a property stays on the market is 50 days.
- Affordable homes abound in the Midwest. The 20 most affordable housing markets in 2022 are primarily Midwestern cities. With six cities in the top twenty rankings, Illinois has the highest number of affordable home markets this year. Indiana and Ohio follow with three cities each that make the list. Multiple factors can account for increased affordability in Midwestern real estate markets, including the cost of living and mitigated effects from climate change compared to coastal cities.
- Real estate markets are on track to be even hotter this year. 2021 may have been a record year for real estate, and in 2022, homebuying competition is not waning. Over the past year, the median home listing price has increased by 14% from $346,162 in January 2021, and the average price per square foot by 31% from $166.25. The average number of days a property stays on the market has decreased in turn by 34% (from 76 days), indicating that the housing market has not only maintained its hot streak but gotten even hotter.
Methodology
The data scientists at Insurify, a site to compare homeowners insurance, referred to real estate data from Realtor.com’s residential listings database to identify the top twenty most affordable home markets in 2022. Realtor.com provides city-level housing market statistics on a monthly basis. To determine the most affordable housing markets this year, Insurify’s team looked at the cities reporting the lowest median listing prices per property. They averaged the median listing prices across 382 U.S. cities from the last three months to account for monthly fluctuations. The twenty cities with the lowest average listing prices were identified as the most affordable housing markets of 2022.
Median price per foot and days on the market were additionally gleaned from Realtor.com. In this study, cities were defined based on the United States Census Bureau’s classification of an “urbanized area,” an urban area with a population over 50,000.
The findings in this article represent statistical trends found in Insurify’s analysis of national real estate data. The findings of this study are not meant to imply the direction nor necessarily the existence of a causal relationship. Rather, this is a presentation of statistical correlations of public interest.
Most Affordable Home Markets 2022
1. Decatur, IL - List prices 75% lower than average
2. Peoria IL - List prices 73% lower than average
3. St. Joseph, MO - List prices 73% lower than average
4. Lawton, OK - List prices 72% lower than average
5. Springfield, IL - List prices 72% lower than average
6. Terre Haute, IN - List prices 70% lower than average
7. Kokomo, IN - List prices 69% lower than average
8. Youngstown, OH - List prices 69% lower than average
9. Albany, GA - List prices 68% lower than average
10. Muncie, IN - List prices 67% lower than average
20 Most Affordable Cities to Buy a House in 2022
20. Waterloo, Iowa
- Median home listing price: $152,650 (61% below the national average)
- Median price per foot: $115 (47% below the national average)
- Median days on market: 58 days
19. Rockford, Illinois
- Median home listing price: $151,967 (62% below the national average)
- Median price per foot: $94 (57% below the national average)
- Median days on market: 49 days
18. Springfield, Ohio
- Median home listing price: $150,466 (62% below the national average)
- Median price per foot: $109 (50% below the national average)
- Median days on market: 65 days
17. Champaign, Illinois
- Median home listing price: $147,400 (63% below the national average)
- Median price per foot: $111 (49% below the national average)
- Median days on market: 65 days
16. Enid, Oklahoma
- Median home listing price: $146,250 (63% below the national average)
- Median price per foot: $93 (57% below the national average)
- Median days on market: 60 days
15. Charleston, West Virginia
- Median home listing price: $145,450 (63% below the national average)
- Median price per foot: $90 (51% below the national average)
- Median days on market: 65 days
14. Erie, Pennsylvania
- Median home listing price: $143,250 (64% below the national average)
- Median price per foot: $106 (51% below the national average)
- Median days on market: 64 days
13. Toledo, Ohio
- Median home listing price: $142,067 (64% below the national average)
- Median price per foot: $101 (54% below the national average)
- Median days on market: 51 days
12. Bloomington, Illinois
- Median home listing price: $132,983 (66% below the national average)
- Median price per foot: $85 (61% below the national average)
- Median days on market: 67 days
11. Davenport, Iowa
- Median home listing price: $130,616 (67% below the national average)
- Median price per foot: $94 (57% below the national average)
- Median days on market: 66 days
10. Muncie, Indiana
- Median home listing price: $129,032 (67% below the national average)
- Median price per foot: $83 (62% below the national average)
- Median days on market: 47 days
9. Albany, Georgia
- Median home listing price: $126,050 (68% below the national average)
- Median price per foot: $78 (64% below the national average)
- Median days on market: 48 days
8. Youngstown, Ohio
- Median home listing price: $124,116 (69% below the national average)
- Median price per foot: $82 (62% below the national average)
- Median days on market: 58 days
7. Kokomo, Indiana
- Median home listing price: $122,450 (69% below the national average)
- Median price per foot: $80 (63% below the national average)
- Median days on market: 51 days
6. Terre Haute, Indiana
- Median home listing price: $118,417 (70% below the national average)
- Median price per foot: $82 (62% below the national average)
- Median days on market: 62 days
5. Springfield, Illinois
- Median home listing price: $109,300 (72% below the national average)
- Median price per foot: $77 (62% below the national average)
- Median days on market: 54 days
4. Lawton, Oklahoma
- Median home listing price: $108,783 (72% below the national average)
- Median price per foot: $78 (64% below the national average)
- Median days on market: 59 days
3. St. Joseph, Missouri
- Median home listing price: $108,183 (73% below the national average)
- Median price per foot: $84 (61% below the national average)
- Median days on market: 57 days
2. Peoria, Illinois
- Median home listing price: $105,533 (73% below the national average)
- Median price per foot: $80 (63% below the national average)
- Median days on market: 57 days
1. Decatur, Illinois
- Median home listing price: $100,116 (75% below the national average)
- Median price per foot: $66 (70% below the national average)
- Median days on market: 51 days
Sources
- Realtor.com’s Real Estate Data Library. “Residential Listings Database.” Accessed February 2022.
- Insurify Insights. “The Hottest Real Estate Markets in 2022.” Accessed February 2022.
- Insurify Insights. “Homebuyer Havens: The Most Affordable Cities to Buy a House (2021).” Accessed February 2022.
If you have any questions or comments about this article or would like to request the data, please contact insights@insurify.com.
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