Most Affordable Areas to Buy a Home | Updated for 2025
The current housing market may feel like a tough place for many aspiring homeowners, with rising home prices and relatively high mortgage rates creating added challenges. It’s no wonder that in some areas, finding a home within your budget feels like a struggle.
However, it’s important to remember that not all markets are the same. According to the National Association of Realtors (NAR), housing is many areas is not nearly as expensive as buyers would expect. While certain cities and regions have seen prices soar, there are still plenty of affordable areas where homebuyers can find a great deal.
If you’re open to exploring new locations, you’ll find a wide range of options that won’t break the bank. Here’s a look at some affordable areas across the country where you can still find a home within your budget.
Check your VA home buying eligibility. Start here (Dec 26th, 2024)
Lowest median home costs in US
Just to get an idea of how affordable housing the US can actually be, let’s take a look at 2024’s lowest median home cost counties:
- King County, Texas: $31,700
- Todd County, South Dakota: $41,800
- McDowell County, West Virginia: $58,640
- Cochran County, Texas: $62,560
- Knox County, Texas: $65,920
According to Redfin, the national average home price estimate in September 2024 was $427,496 which makes these home prices seem like an absolute steal. A downpayment of 20% on an average home in King County would run a home buyer just over $6,340.
What’s interesting is that these aren’t the lowest prices available – they’re averages, meaning some homes are priced even lower.
Of course, these areas aren’t considered hotbeds of growing economies, nor are they neighboring or housing major metropolitan areas.
When a county does have a major metropolitan area nearby, prices can jump quickly.
Least affordable areas for homes
The NAR compiled data for every county, meaning they know which areas have the highest estimated median cost for a home. For any home buyers following the market, the results aren’t too shocking:
- Nantucket County, MA: $1,705,210
- San Mateo County, CA: $1,701,860
- Santa Clara County, CA: $1,664,410
- Marin County, CA: $1,584,980
- San Francisco County, CA: $1,575,700
The Bay Area leads the nation with the top most expensive counties to purchase a home. This is hardly surprising, considering the high standard of living and extreme rental rates.
While plenty of veterans would probably like to live in the San Francisco area, the cost of homes prices out most people in the nation. Also, consider this: just because home prices are high doesn’t mean it’s the best place in the nation to buy a home.
Check your VA mortgage rates. Start here (Dec 26th, 2024)
Best place to buy a home?
So, where is the best place to buy a home?
If we based it purely on affordability, you would want to pack your things and move to King County, Texas. But home buyers are smart enough to know that the cheapest possible option isn’t always the best.
Picking the best place to buy a home is difficult. Nobody who bought a Bay Area home in the 1950s expected to watch their home value skyrocket as tax-friendly laws made it cheaper for them to stay put. There are too many variables, especially looking in the long run.
Also, many veterans have jobs or families that tie them to a geographic area. While it would be nice to purchase the lowest-cost home anywhere in America, moving isn’t always a feasible option.
Perhaps the best way to find an affordable home is to look at wherever your work is and find something nearby.
Affordable homes are out there – veterans just need to widen their home search, particularly if they’re living in a busy city.
VA loans are an affordable option
As you expand your home search, remember that veterans are eligible for the VA loan, often considered the best mortgage product for home buyers.
Through a VA loan, veterans won’t have to make a down payment on their home, one of the biggest hurdles that home buyers – and particularly first-time home buyers – face during their search. Also, VA loans typically have the lowest mortgage rates available, keeping monthly payments low.
With a little effort and leeway, veterans would likely be surprised with just how affordable it is to buy a home near, or possibly in, their area.
Check your VA home buying eligibility. Start here (Dec 26th, 2024)
