Over the past five years, American home prices, along with the general cost of living, have boomed. Now, as a new year is about to start, buying a home in 2026 may feel out of reach for many, especially with elevated mortgage rates and persistent inflation. However, not all hope is lost because despite national price pressures, there are still affordable housing markets where homeownership is possible — well, if you’ve saved at least $50,000.
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According to recent housing data, several U.S. cities offer below-average home prices, making them attractive options for first-time buyers and budget-conscious homeowners. However, even in these markets, you’ll need a solid financial foundation to cover upfront costs like down payments, closing fees and moving expenses.
GOBankingRates has scoured the real estate market to find 10 affordable cities where homes are still within reach. These locations strike a balance between low housing costs, livability and long-term investment potential, making them ideal for buyers looking to stretch their dollars in today’s competitive real estate landscape.
1. Saint Paul, Minnesota
- 2025 typical home value: $297,197
- Savings needed for 20% down payment: $59,439
- Annual mortgage with 20% down payment: $17,419
- Salary needed to afford a mortgage with a 20% down payment: $58,063
- Savings needed for 6% down payment: $17,832
- Annual mortgage with 6% down payment: $20,467
- Salary needed to afford a mortgage with 6% down payment: $68,224
2. Garland, Texas
- 2025 typical home value: $295,158
- Savings needed for 20% down payment: $59,032
- Annual mortgage with 20% down payment: $17,299
- Salary needed to afford a mortgage with a 20% down payment: $57,664
- Savings needed for 6% down payment: $17,709
- Annual mortgage with 6% down payment: $20,327
- Salary needed to afford a mortgage with 6% down payment: $67,756
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3. Grand Rapids, Michigan
- 2025 typical home value: $293,845
- Savings needed for 20% down payment: $58,769
- Annual mortgage with 20% down payment: $17,222
- Salary needed to afford a mortgage with a 20% down payment: $57,408
- Savings needed for 6% down payment: $17,631
- Annual mortgage with 6% down payment: $20,236
- Salary needed to afford a mortgage with 6% down payment: $67,454
4. Omaha, Nebraska
- 2025 typical home value: $288,514
- Savings needed for 20% down payment: $57,703
- Annual mortgage with 20% down payment: $16,910
- Salary needed to afford a mortgage with a 20% down payment: $56,366
- Savings needed for 6% down payment: $17,311
- Annual mortgage with 6% down payment: $19,869
- Salary needed to afford a mortgage with 6% down payment: $66,230
5. Huntsville, Alabama
- 2025 typical home value: $286,491
- Savings needed for 20% down payment: $57,298
- Annual mortgage with 20% down payment: $16,791
- Salary needed to afford a mortgage with a 20% down payment: $55,971
- Savings needed for 6% down payment: $17,189
- Annual mortgage with 6% down payment: $19,730
- Salary needed to afford a mortgage with 6% down payment: $65,766
6. Lincoln, Nebraska
- 2025 typical home value: $285,307
- Savings needed for 20% down payment: $57,061
- Annual mortgage with 20% down payment: $16,722
- Salary needed to afford a mortgage with a 20% down payment: $55,740
- Savings needed for 6% down payment: $17,118
- Annual mortgage with 6% down payment: $19,648
- Salary needed to afford a mortgage with 6% down payment: $65,494
7. Ocala, Florida
- 2025 typical home value: $278,309
- Savings needed for 20% down payment: $55,662
- Annual mortgage with 20% down payment: $16,312
- Salary needed to afford a mortgage with a 20% down payment: $54,373
- Savings needed for 6% down payment: $16,699
- Annual mortgage with 6% down payment: $19,166
- Salary needed to afford a mortgage with 6% down payment: $63,888
8. Houston
- 2025 typical home value: $272,006
- Savings needed for 20% down payment: $54,401
- Annual mortgage with 20% down payment: $15,942
- Salary needed to afford a mortgage with a 20% down payment: $53,141
- Savings needed for 6% down payment: $16,320
- Annual mortgage with 6% down payment: $18,732
- Salary needed to afford a mortgage with 6% down payment: $62,441
9. Greensboro, North Carolina
- 2025 typical home value: $268,611
- Savings needed for 20% down payment: $53,722
- Annual mortgage with 20% down payment: $15,743
- Salary needed to afford a mortgage with a 20% down payment: $52,478
- Savings needed for 6% down payment: $16,117
- Annual mortgage with 6% down payment: $18,498
- Salary needed to afford a mortgage with 6% down payment: $61,662
10. Columbus, Ohio
- 2025 typical home value: $266,417
- Savings needed for 20% down payment: $53,283
- Annual mortgage with 20% down payment: $15,615
- Salary needed to afford a mortgage with a 20% down payment: $52,049
- Savings needed for 6% down payment: $15,985
- Annual mortgage with 6% down payment: $18,347
- Salary needed to afford a mortgage with 6% down payment: $61,158
Methodology: For this piece, GOBankingRates looked at the 50 largest housing markets with 2025 typical home values below $300,000, as sourced from September 2025 Zillow data. GOBankingRates deemed this “affordable” as the national average is $366,637, thus $300,000 and below is well below the national average (18%+). With these cities isolated GOBankingRates found the following: (1) savings needed for a down payment at 20%, 15%, 10%, and 6%; (2) annual mortgage cost at 20%, 15%, 10% and 6% respectively; and (3) salary needed to afford mortgage at 20%, 15%, 10%, and 6%, assuming that no more than 30% of pre-tax income should be put towards housing. For all mortgage calculations, GOBankingRates assumed a 30-year fixed rate at 6.17% as sourced from Freddie Mac, with no P&I, property tax or HOA fees. All data was collected and is up to date as of Nov. 4, 2025.
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This article originally appeared on GOBankingRates.com: 10 Affordable Housing Markets Where You’ll Still Need $50K To Buy a Home
