10 Best Cities To Buy An Affordable Home In 2025

Buying a home is a major milestone that represents more than a place to live; it’s a key financial investment and pathway to long-term stability.

High home prices and elevated mortgage rates make buying a house today challenging. However, with thoughtful planning, research and smart financial strategies, securing an affordable home is still possible.

Forbes Advisor compared the 100 largest U.S. cities with available data across key metrics, including affordability, inventory and lifestyle, to determine the best cities in which to buy an affordable home.

Our selected cities have much to offer budget-conscious home shoppers, though some eclipse others in affordability, housing stock and local amenities.

10 Best Places To Buy an Affordable Home

1. Pittsburgh, Pennsylvania

Pittsburgh’s score: 100/100

In terms of home prices, Pittsburgh ranked 19th lowest, with median-priced homes running around $236,067, making the Steel City an appealing option for home shoppers on a tight budget. What’s more, Pittsburgh homeowners benefit from low housing costs as a percentage of income, at 14.8%, earning the second-lowest ranking for this metric.

Pittsburgh's housing inventory will also excite home shoppers. The city ranks fifth-highest in listings per 100,000 households, so those looking to settle down in “da burgh” will have many options.

Those raising school-aged kids will also be pleased to learn that the city ranked fifth-highest for quality schools.

Apart from the affordable homes and excellent education system, Pittsburgh’s charm and strong community vibe extend beyond the beloved Steelers and iconic Primanti sandwich. The city’s thriving arts and culture scene, dining hotspots and outdoor activities—such as biking, kayaking and picnicking in historic Point State Park—offer something for everyone.

2. Fort Wayne, Indiana

Fort Wayne’s score: 88.99/100

With a metro-area population under 500,000, a flourishing riverfront, an arts community and a unique urban-suburban vibe, Fort Wayne offers an appealing mix of affordability and livability.

First-time home buyers take notice: The median home price here is roughly $227,322, placing Fort Wayne 13th lowest in housing costs in our analysis. The city also ranked among the best when it comes to homeowner costs as a percentage of median household income (14.9%), tying for third lowest.

For those concerned about safety, you’ll be delighted that Fort Wayne has a pretty low crime rate, ranking 22nd among the cities we analyzed. This makes this all-American, family-friendly city a secure place to put down roots.

Jobseekers eyeing homes in Fort Wayne will be pleased to discover that big companies like Google and Amazon have established a presence there, and City of Fort Wayne employees enjoy a competitive benefits package and flexible working conditions.

3.Buffalo, New York

Buffalo’s score: 87.88/100

Buffalo is already drawing home shoppers as one of the cheapest places to buy a home. It ranks eighth lowest in our analysis, with a median home sale price of about $211,133.

In terms of home affordability, Buffalo has the third-lowest costs as a percentage of median household income, with just 14.9% of earnings required to cover home expenses.

Families will also value the Queen City's solid educational reputation—its quality school system ranked 10th in our analysis.

Buffalo also shines as a hub for foodies (beyond its famously named chicken wings), ranking 20th for dining and drinking per capita. Moreover, its proximity to two Great Lakes provides residents with fishing, boating, water sports and lakeside chillout opportunities.

4. Huntsville, Alabama

Huntsville’s score: 83.30/100

Huntsville is the most populous city in Alabama, but still under 225,000, and stands out as a small metropolis with an affordable housing market, good job opportunities and easy access to nature.

With a median home price of about $259,817, Huntsville ranked 26th lowest in our analysis. On top of that are the low homeownership costs. Huntsville ranked the best in this metric at only 14.1% of the median household income.

However, the low property tax rate of just 0.41% of the median home value—the seventh lowest in the country—may seal the deal. This helps to make Huntsville one of the most affordable cities in the U.S. to own a home.

Huntsville is also a safe place to live, coming in 10th for the lowest crime rate among the cities we evaluated.

Residents of the Rocket City also have access to the world-famous U.S. Space & Rocket Center museum, over 60 public parks and the Von Braun Center entertainment complex, making it a fun and lively spot to raise a family.

5. Oklahoma City, Oklahoma

Oklahoma City’s score: 76.89/100

If you want to live in an affordable locale with southern charm, consider Oklahoma City.

With a median home sale price of $213,000, Oklahoma City ranked ninth-lowest among U.S. cities, making it an excellent value for prospective buyers. Moreover, homeownership is affordable once you settle down in the Big Friendly. Residents spend an average of 17% of their median household income on homeowner costs, placing the city at 21st lowest in this category.

Beyond its affordability, Oklahoma City offers families quality educational opportunities, ranking 35th highest for school quality.

Oklahoma’s capital city also offers its nearly 700,000 residents a vibrant mix of arts, culture, dining and outdoor activities. From the bustling Bricktown Entertainment District to the Boathouse District along the river to its array of museums, galleries and emerging culinary scene, there’s plenty to enjoy and explore.

6. Indianapolis, Indiana

Indianapolis’ score: 76.14/100

Indianapolis is a solid choice if you’re looking to settle down in an affordable city with a friendly vibe.

Homeownership here is attainable, with a median home price of about $231,667. Moreover, the city ranked eighth-lowest for homeowner costs as a percentage of median household income at 16.1%, allowing buyers to maintain more financial flexibility than in other cities.

For families focused on education, Indianapolis has decent school options, ranking 25th for school quality.

Beyond affordability, the Hoosier Capital delivers when it comes to quality of life, offering a vibrant music scene, professional sports teams, over 200 parks and playgrounds and a dynamic yet relaxed vibe for those seeking to settle in a big U.S. city (the 14th largest) with a community feel.

7. El Paso, Texas

El Paso’s score: 75.94/100

With a population over 677,000, El Paso offers a combination of affordability, safety and career opportunities, making it a worthwhile location for aspiring home buyers to add to their list.

The Lone Star state’s sixth-largest city ranked 20th for median home sale price, with homes in this Texan metro selling for around $241,333. The area possesses a relatively robust housing supply, ranking 18th-highest for inventory, with around 1,035 homes available per 100,000 households.

Safety is another perk. El Paso has the ninth-lowest crime rate, offering current and future residents peace of mind.

For home buyers looking to start or build a career, El Paso is home to major employers in the healthcare industry. Job-seekers may also find opportunities at Fort Bliss or one of the colleges and universities.

8. Lexington, Kentucky

Lexington’s score: 74.08/100

Known for its historic bourbon distilleries and expansive horse country, Lexington offers a unique balance of affordability, lifestyle and cultural richness, making it a popular house-hunting spot.

With a median price of approximately $302,667, Lexington home prices are higher than other cities on our list but remain affordable. Plus, once you buy a home in Lexington, you don’t have to worry about high homeownership expenses, with the city ranking 13th-lowest for homeowner costs as a percentage of median income at 16.4%.

Education is another Lexington perk if you’re raising a family or planning one. The city ranked 29th highest for school quality.

The “Horse Capital of the World” also offers a vibrant entertainment scene, including numerous live music venues and world-class performing arts. It ranks 27th highest for entertainment establishments per capita. Food lovers will be impressed by the diverse dining landscape, including Southern barbecue, Latin-inspired dishes, and authentic Thai and Nepalese cuisine.

9. Louisville, Kentucky

Louisville’s score: 74.07/100

Right down the road from Lexington on Interstate 64, Louisville—the Bluegrass state’s largest city—ranks among the best cities for home buying, closely competing with Lexington.

Home buyers in Louisville can snag a median-priced home for around $241,567, making it the 21st lowest city for this metric. Chances are good that you’ll also find your ideal home in Louisville—the area ranked 22nd for new inventory, with over 1,000 new listings per 100,000 households.

Regarding homeownership costs, Louisville doesn’t horse around. You only need to put 17.1% of median household income toward homeownership expenses, allowing more discretionary funds to enjoy all the Louisville area offers.

Speaking of what Louisville has to offer, the area boasts attractions beyond the world-famous Churchill Downs and Kentucky Derby, including the Muhammed Ali Center, the Louisville Slugger Museum and Factory, and a range of culture and entertainment options at the Kentucky Center for Performing Arts. There are numerous downtown eateries and open spaces like Waterfront Park.

10. Omaha, Nebraska

Omaha’s score: 73.74/100

The reported birthplace of the Reuben sandwich and home to four Fortune 500 headquarters, Omaha, rounds out our top 10. It offers an ideal blend of affordability, vibrancy and career opportunities that make the city a great place to put down stakes.

With the median home price hovering around $278,667, Omaha ranked 28th lowest in affordability in our evaluation, allowing homeowners to stretch their dollars. The low home-related expenses are another advantage that will keep money in your pocket. The city ranked within the top 30 for median homeowner costs as a percentage of household income, clocking in at just 17.3%.

An impressive standout feature is Omaha’s top-tier education system. Families raising school-aged children will be pleased to know that it earned the second-highest ranking for school quality among the 100 cities we evaluated.

Omaha’s perks extend way beyond affordability and education. Its diverse neighborhoods, such as the Blackstone District, South Omaha and Old Market, buzz with entertainment options and global cuisine. The thriving culture sector and live music scene, complemented by a varied nightlife that offers everything from craft beer to craft cocktails, ensures an Omaha vibe for everyone.

7 Tips for Saving Up To Buy a Home

Building up savings sooner rather than later is key if you hope to make your dream home a reality.

Applying one or more of these tips will help strengthen your position when you’re ready to take the home-buying plunge:

1. Set aside down payment funds. Designate a separate bank account that offers a high interest rate to save for a down payment so you’ll have all or most of it available when you’re ready to buy a home. The larger the down payment you can make, the less you’ll have to borrow, and the more likely you will get a better rate.
2. Cut unnecessary expenses. Review your monthly costs and ask yourself questions like, “Do I really need those five streaming subscriptions?” Whether it’s streaming subscriptions, daily lattes, expensive vacations or discretionary treats, review your budget and see where you can scale back to devote those savings toward your home-buying goals.
3. Reduce debt. Pay off high-interest debt or transfer the debt to lower-interest loans or no-fee credit cards with 0% introductory APR balance transfers to help you save.
4. Boost your income. If you have time to add a side hustle, such as freelancing, transforming passion projects into profit or selling items you no longer need on online marketplaces, it could be an ideal way to build funds up front for a down payment, lender fees or moving costs.
5. Save gift money and raises. Your first instinct may be to blow gift money, a raise or some other windfall on a luxury, but try to suppress the urge and set aside most or all of these funds for your home-buying dream.
6. Get a roommate. If renting, find a space to share to reduce your monthly housing costs significantly. Also, consider moving in with family for some time if that’s an option.
7. Strengthen your credit score. While this strategy doesn’t necessarily save you money today, taking steps to boost your credit score, such as eliminating high-interest debt, paying recurring bills on time, keeping established credit cards open and avoiding new credit card applications, will save you money when you’re ready to shop mortgage lenders. A more robust credit score can help you qualify for more attractive mortgage interest rates.

Best Mortgage Options for Buying a Home

There’s no single best mortgage option for everyone. Prospective borrowers should shop for multiple offers at traditional banks, credit unions and online lenders. Comparing lenders will provide a complete picture of the rates and fees landscape, help you determine the best mortgage lenders and give you the leverage to negotiate the best deal. Plus, many lenders offer unique loans that might suit your needs.

Otherwise, here are some of the most popular mortgage options to consider when buying a home:

• Fixed-rate mortgage: This mortgage offers a fixed interest rate over the entire loan term. The 30-year fixed-rate mortgage is the most popular among the traditional 30- and 15-year options. The 15-year option requires higher monthly payments due to the shorter loan repayment term. Many borrowers choose these loans for their stability, knowing they may have the option to refinance if mortgage rates decline.
• Adjustable-rate mortgage (ARM): The most common ARM offers a fixed interest rate for a portion of the loan term, followed by an adjustable-rate period. For example, the 5/1 ARM offers a five-year fixed-rate period, and then the current market interest rate kicks in annually, causing a change in monthly mortgage payments. Other ARMs include the interest-only arm, which allows borrowers to pay interest for a certain period and then requires them to pay interest and principal. The payment-option ARM provides several alternatives for monthly principal and interest payments.
• FHA Loan: An FHA loan is a government-backed loan tailored for qualified low- to moderate-income home buyers. It allows you to put down as little as 3.5% on a home if you have a credit score of at least 580. Those with credit scores between 500 and 579 need to put down 10%. FHA loans also require an upfront and monthly insurance payment.
• VA Loan: VA-backed home loans are available to eligible veterans, active duty and reserve servicemembers and surviving spouses. Because the Department of Veterans Affairs backs these loans, they come with reduced lender risk and perks such as no down payment or private mortgage insurance, plus limited closing costs. Borrowers may be required to pay a funding fee to support the program.
• USDA Loan: A USDA loan, or Section 502 Loan, is geared toward eligible low- to very-low-income borrowers who want to buy a qualified home in a USDA-approved rural area. Approved borrowers receive a subsidy for a brief period to support mortgage repayment ability.
• Jumbo loans: Also known as non-conforming loans, jumbo loans are for borrowers who purchase a home that exceeds the conforming loan limits that the Federal Housing Finance Agency (FHFA) sets annually by state and do not comply with the lending guidelines set by mortgage-banking companies Fannie Mae and Freddie Mac.

Methodology

To determine the best cities to buy an affordable home, Forbes Advisor analyzed the 100 largest cities in the U.S. with available data (based on the city population per the U.S. Census Bureau) across three pertinent categories: affordability, inventory and lifestyle.

We considered the nine relevant metrics listed below with their corresponding weights to rank all 100 cities:

Affordability (50%)

• Median sale price. 35%; data is from Zillow and is for July 2024
• Median homeowner costs as a percent of median individual income. 10%; data comes from the Census Bureau’s most recent American Community Survey (ACS)
• Property tax as a percent of median home value. 5%; data comes from the Census Bureau’s most recent ACS

Lifestyle (37%)

• Crime rate (combination of property and violent crime). 18%; data comes from NeighborhoodScout

• School district quality. 7%; data comes from NeighborhoodScout

• Food and drink establishments per 100,000 residents. 6%; data comes from the Census Bureau’s most recent County Business Patterns (CBP) survey

• Arts and entertainment establishments per 100,000 residents. 6%; data comes from the Census Bureau’s most recent CBP

Inventory (13% of total score)

• Homes for sale per 100,000 households. 6.5%; data comes from Zillow and is for July 2024
• New home listings per 100,000 households. 6.5%; data comes from Zillow and is for July 2024