Extreme bargain hunters have just one big metro left if they want to buy a home for less than $100,000.
Recently, real estate brokerage firm Redfin noted that among the 50 most populous metros in the U.S., only one offers starter homes with a median price that is less than six figures.
Fortunately, a handful of other markets also offer starter homes at a median price that is not too far above the $100,000 mark. That compares with a median price of $250,000 for starter homes nationwide in July. Redfin defines starter homes as those with sale prices in the fifth to 35th percentile.
Homes at this price point are highly desirable right now, according to a summary of Redfin’s findings. Derrell Skillman, a Redfin Premier agent in San Antonio, notes that lower-priced homes have really started to move since mortgage rates fell to 6.5%.
“We are seeing a lot of younger buyers looking at smaller starter homes. They don’t want a big backyard and a pool, they just want something efficient, with minimal ongoing maintenance required.”
Here are the major U.S. metros where median starter home prices are $200,000 or less.
1. Detroit, MI
Median sale price of starter homes in this metropolitan area: $67,500 (which reflects an increase of 15.88% since July 2023)
Median time on the market for starter homes in this metro: 40 days
Detroit is the famed “Motor City,” where Henry Ford founded the Ford Motor Co. and other car manufacturers soon followed. It is the only big city in the U.S. where you can look south into Canada.
2. Pittsburgh, PA
Median sale price of starter homes in this metropolitan area: $117,000 (which reflects an increase of 13.59% since July 2023)
Median time on the market for starter homes in this metro: 47 days
For a relatively small city, Pittsburgh’s sports teams have won a lot of big championships. The NFL’s Steelers have won six Super Bowls, the NHL’s Penguins have won five Stanley Cups and MLB’s Pirates have won the World Series five times.
3. St. Louis, MO
Median sale price of starter homes in this metropolitan area: $125,000 (which reflects an increase of 8.7% since July 2023)
Median time on the market for starter homes in this metro: 27 days
St. Louis is home to Anheuser-Busch, one of the largest beer producers on earth. The ice cream cone also made a big splash when it was introduced here during the 1904 World’s Fair.
Other metros where starter homes cost less than $200K
Here are the rest of the metros with median prices for starter homes of less than $200,000:
- Cleveland, OH: $125,000/median of 21 days on the market
- Philadelphia, PA: $137,000/44
- Indianapolis, IN: $171,300/13
- Kansas City, MO: $180,000/21
- Cincinnati, OH: $180,000/33
- Warren, MI: $185,000/12
- Milwaukee, WI: $188,500/37
- Columbus, OH: $199,000/35
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