The 10 Cities Where You Can Still Buy Your Dream Home for Under $350K
There was a time, not too long ago, when a million-dollar home was something of a rarity reserved for the wealthy. But then the pandemic swept in and messed with everything, including the housing market. Suddenly, basic builder-grade homes were listed for half-a-million dollars. No small price, especially for first-time homeowners.
But that doesn't mean that you'll be left renting forever. In fact, you can snag a charmer and still have money for furniture, especially if you're willing to put in a little bit of reno work.
"Affordability is the biggest story happening in the housing market right now," says Amanda Pendleton, home trends expert at Zillow, a leading real estate website. "Remote work has opened up more opportunities. Whether that is hybrid or fully remote work, people have more options today than they did prior to the pandemic."
That means you could conceivably work in an expensive city, but live in one of these metro areas where Pendleton says you can find "great gems." In the ten cities listed below, you can buy a top-tier home for less than $339,366, the value of a typical American home. (In comparison, a typical U.S. top-tier home is worth $642,329, according to Zillow data.) She adds, "Your money goes a lot farther," in these spots.
Elizabeth Finkelstein, cofounder of Cheap Old Houses, concurs. Whereas during the pandemic people moved to the sunbelt in droves, it's now the more budget-savvy midwest and parts of the northeast that are drawing attention. "People are chasing that affordable home, and it is leading them to different places," Finkelstein says. "With current mortgage rates, it is really hard to upgrade, people feel trapped in that starter home, and may start asking, 'Where can I get the home I really want? Maybe it’s not in my city or even my state?'"
Interest in hot spots like Phoenix, Arizona, and Raleigh, North Carolina, has been replaced with curiosity about smaller locales such as Syracuse, New York, and Peoria, Illinois. These often overlooked cities brim with one-of-a-kind historical homes thanks to their land banks, non-profit organizations that work with the city to rehabilitate properties and neighborhoods. And remember, these 10 cities are places where a house tops out at $350,000. With a bit of digging you can find a Tudor-style home under $75,000 in Toledo, Ohio, or a Victorian row house in Wheeling, West Virginia, that clocks just under $100 grand.
Even if you're not into rolling up your sleeves for a fixer-upper, there are still plenty of options for beautiful, move-in ready homes. We teamed up with Zillow and Cheap Old Houses to give you a list of top 10 dream home destinations with affordable housing you will love. But you'd better move fast before word of these great deals gets out.
Wheeling, West Virginia
Typical value of a top-tier home: $229,264
This city about an hour southwest of Pittsburgh has no shortage of character-rich homes, especially if you're a fan of Greek Revival and late Victorian architecture. These row houses would make Brooklynites jealous—especially once they heard the price. "You can snap up a home with great bones for less than $300,000," Pendleton says.
Peoria, Illinois
Typical value of a top-tier home: $246,529
Finkelstein is a big fan of Peoria, which shows up consistently on the Cheap Old Houses listings in part because it has a rich history as a one-time Whiskey Capital of the World. The liquor boom, between 1837 and 1919, brought magnates of the industry who built gorgeous historical homes they left behind once the boom went bust—and which now can be snagged for bargain prices.
"You're going to see a lot of late Victorian, Colonial Revival, Tudor, and early 20th-century homes," Finkelstein says. "All the styles were converging at that time. It's a fascinating city with elaborate architecture from the era of excess that is elaborate, whimsical, and fun."
Buying here is also a good investment. "Even in a slower national housing market, homes in midwestern metro areas like Peoria are gaining value and selling faster," Pendleton adds.
Texarkana, Texas
Typical value of a top-tier home: $272,607
Those seeking a small town with a suburban feel should look no further than this friendly spot bordering Texas and Arkansas. Here you can find something like this 1970s house with a floor-to-ceiling stone fireplace and plenty of backyard space for under $300,000. And if you love the great outdoors, note that Texarkana is within two hours of Hot Springs National Park.
Lake Charles, Louisiana
Typical value of a top-tier home: $291,371
Working from home is even more appealing when you can do it near the water. The Lake Charles metro area offers lakeside living at a fraction of the cost of other waterfront destinations, Pendleton notes, with many desirable ranch-style homes. A move-in ready home from the aughts that sports now-trendy arched doorways can be found for around $265K.
Erie, Pennsylvania
Typical value of a top-tier home: $295,347
You can find a brick bungalow under $100,000 with original fireplaces and wood trim throughout. All you need is some Morris & Co. wallpaper to start living your dream life. This small town is on Lake Erie, so you can get amazing views for less than you would living in Cleveland.
Jackson, Tennessee
Typical value of a top-tier home: $296,033
Just 70 miles east of Memphis, this Tennessee gem is a bargain compared with Nashville, where the typical home value of a top-tier home is $714,336. You can nab a new build for under $300k or reinvent a Victorian with a wraparound porch that's listed under $200k.
Toledo, Ohio
Typical value of a top-tier home: $304,409
Toledo placed second on Zillow's 2023 list of top metros for first-time buyers thanks to its rent and mortgage affordability. (Housing is considered affordable if it makes up 30 percent of your pre-tax income or less.) In Toledo, typical rent and monthly mortgage payments both fall below that threshold, which means you have more disposable income to either save or spend on other things.
Syracuse, New York
Typical value of a top-tier home: $315,731
Homes in Syracuse are appreciating more than five times faster than the country, Pendleton says. Home values are up 6.6 percent over the past year, showcasing the strong demand for homes in affordable Northeastern markets.
Finkelstein also points out that Syracuse is another darling of Cheap Old Houses, in part because the city has an "extremely active land bank" that the nonprofit puts on the market for as low as $3,000. "It's a really cool place, and you can definitely snag something for very little money," she adds.
Montgomery, Alabama
Typical value of a top-tier home: $319,180
A Federal style home with a pool for under $250,000 is possible, as is a 1960s ranch. The historical state capital–known for the Civil Rights Memorial–offers home options for every style and budget.
Wichita, Kansas
Typical home value of a top-tier home: $331,632
Wichita topped Zillow's list of top metros for singles looking for love and top metros for first-time home buyers thanks to its unbeatable affordability. The largest city in Kansas also tops the highest share of rental units affordable to single renters. That means you can rent your own place while saving up quickly for a down payment. Wichita also caters to families, with plenty of cultural and outdoor offerings.
Honorable Mention: Detroit, Michigan
Typical value of a top-tier home: $408,529
While Detroit's home value is a bit higher than the cities listed above, it's worth mentioning because the Motor City is rich in "absolutely spectacular architecture" that spans midcentury modern abodes to cozy cottages. Finkelstein notes that it's really good for first-time home buyers, couples, and young families. "Detroit has a lot of creatives and people who are very active and interested in restoring the city. There is solidarity in that."
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