If buying a home feels impossible, consider one of these cities
As house prices rise and mortgage rates settle into a new normal, affordability is becoming a top priority for many people deciding where to live. Housing costs are people’s largest expense, after all. However, since the pandemic, costs have been growing far faster than incomes across the nation, leading cities with more affordable housing to grow in popularity.
This discrepancy, known as the price-to-income ratio, has made it harder for many to afford homeownership. Some cities have become dramatically more expensive, like Providence, while others have seen modest increases, like Minneapolis.
But which cities are still affordable? Let’s take a look at the cheapest places to live in 2025, where housing remains reasonably priced and the overall cost of living is more manageable.
What makes a city affordable?
We define an “affordable” city as one where typical housing costs are 30% or less of the area’s median monthly income, which experts consider the “cost-burdened” threshold. For example, if the median monthly income in a city is $4,000, a housing payment of $1,200 or less would be considered affordable.
To rank the most affordable cities, we analyzed the gap between home prices and local wages, focusing on the share of home listings that were affordable to someone earning the area’s median income. This is called the price-to-income ratio. Cities with the highest percentage of affordable listings ranked as the most affordable.
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Deciding between renting or buying your next home?
Compare the costs of renting vs buying and find a lender to secure your mortgage.
1. Detroit, MI
77.2% of homes affordable on area’s median income
Median household income: $63,937
Median sale price: $175,000
Median rent price: $1,333
Income needed to afford median-priced home: $45,789
Cost of living: 3% higher than the national average
Detroit, the automobile mecca turned Rust Belt icon, is the most affordable city in the U.S. It is so cheap largely because of its economic and population decline, which culminated in bankruptcy in 2013. Today, rent and house prices are far below national rates, and the typical salary generously covers the standard monthly housing payment.
Detroit has been through ups and downs over the past 60 years, but it’s carving out a fresh reputation as a diverse, thriving metro. Tech companies, population growth, and investment into the city’s infrastructure are helping revitalize the downtown core and improve people’s quality of life. New eateries, coffee shops, and boutiques are popping up in neighborhoods like Midtown and Corktown, giving quiet blocks a shot of creative energy.
Even the once-forgotten riverfront is getting new life, with walking paths and community events drawing crowds to the water’s edge. The city is rebuilding from the ground up, earning its reputation as Grit City.
Income needed to afford median-priced home: $61,313
Cost of living: 2% lower than the national average
Pittsburgh is the best place to live in Pennsylvania for a reason. Once defined by steel mills, it’s now home to cutting-edge tech companies and a growing population – yet it’s still the second cheapest place to live in the country. Neighborhoods like Lawrenceville and the Strip District have transformed from industrial corridors to hip hangouts packed with restaurants, breweries, and galleries.
In recent years, Pittsburgh’s affordability has been dropping. As nationwide demand for affordable housing rises, more people have been looking for something they can afford, driving up prices. However, Pittsburgh still remains one of the cheapest cities in the U.S. A strong job market, relatively low housing costs, and a thriving community continue to make it a great option for those looking to live affordably in a lively city.
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3. St. Louis, MO
67.5% of homes affordable on area’s median income
Median household income: $85,750
Median sale price: $258,000
Median rent price: $1,235
Income needed to afford median-price house: $68,980
Cost of living: 22% lower than the national average
St. Louis sits in a sweet spot for big-city living without the steep price tag. You can catch a Cardinals game at Busch Stadium, tour craft breweries, or explore an arts scene spanning from the Delmar Loop to Grand Center. The Gateway Arch may be the city’s iconic landmark, but what really hooks newcomers is St. Louis’s Midwest friendliness and affordability.
St. Louis has an especially low cost of living. Housing, healthcare, everyday errands, and nights on the town all run 9-22% below the national average. House prices are much higher than Detroit, though, which is why it ranks lower on our list. Like many budget-friendly metros, St. Louis has seen rising home prices in recent years, but it still holds its spot as the third-most affordable city in the country.
Income needed to afford median-priced home: $57,388
Cost of living: 19% lower than the national average
Cleveland is shedding its Rust Belt image, boasting an economy powered by healthcare, tech, and finance – and housing that won’t sink your budget. Whether it’s a revitalized Victorian in Ohio City or a modern loft near Lake Erie, affordability is hard to beat. Throw in Playhouse Square, the Rock & Roll Hall of Fame, and a new parks department, and you’ll find big-city amenities at a fraction of the usual price.
On top of that, there’s a warm, community-focused vibe here, featuring die-hard Browns fans and an embrace of local shops and eateries. The city’s historic downtown has been transformed over the past decade into a hub for connection and growth, as well. A low cost of living and near-average median income makes Cleveland the fourth-most affordable place in the U.S.
Income needed to afford median-priced home: $94,972
Cost of living: 13% lower than the national average
Looking for a city that won’t break the bank? Baltimore, fondly dubbed “Charm City,” could be the perfect fit. Traditional rowhouses in neighborhoods like Canton or Federal Hill still come at manageable prices, and the revitalized waterfront buzzes with fresh dining and entertainment options. People tend to have higher incomes in Baltimore than in nearby cities like Chicago and Pittsburgh, too, helping add to its relative affordability.
Importantly, Baltimore’s economy has been booming lately, in part fueled by record-breaking activity at the port, which has brought jobs and money to the area. Popularity has brought more demand, though, which has begun to push prices up.
Income needed to afford median-priced home: $78,424
Cost of living: 15% higher than the national average
Chicago is massive and home to everything from world-famous art to quaint lakeside parks. Because of its size, the cost of living varies widely depending on where you live. House prices reach into the millions in neighborhoods like Winnetka and Gold Coast, for example, while Avalon Park and Cottage Grove Heights are much more affordable.
Strong median incomes and below-average house prices are how Chicago earned its number six spot. And no matter where you live in the city, you’ll find everyday expenses that hover close to the national average.
Beyond affordability, the Windy City offers world-class museums, a legendary food scene, and four distinct seasons that keep things interesting. From cheering on the Cubs at Wrigley to strolling the bustling lakefront, there’s plenty to fill your weekends without blowing your budget.
Income needed to afford median-priced home: $75,506
Cost of living: 11% lower than the national average
Just north of Detroit, Warren might not get the same buzz as its big-city neighbor. But, with affordable housing and plenty of attractions, there’s a reason people continue moving there. Manufacturing has been a major player in the city for decades, which you can see in action at the General Motors Technical Center.
Beyond that, you can find a variety of local shops and restaurants along Van Dyke Avenue, while Macomb Mall provides a convenient spot for a quick shopping trip. The city is also ushing to build a new downtown and revitalize neglected buildings.
Warren might fly under the radar, but for anyone craving Midwest charm with a manageable price tag, it’s right on the money.
Income needed to afford median-priced home: $76,866
Cost of living: 11% lower than the national average
Indianapolis remains an attractive choice for anyone seeking urban life without astronomical prices. Housing affordability has even improved lately, and wages surpass the income you need to afford the typical house payment. This, plus lower-than-average grocery and utility costs, help make Indy the eighth most affordable place to live and buy a house
Sports lovers find plenty to cheer about, from the Colts and Pacers to the world-famous Indy 500. Meanwhile, a blossoming food scene, cultural landmarks, and the three-mile long Downtown Canal trail provide year-round entertainment.
Income needed to afford median-priced home: $73,377
Cost of living: 3% lower than the national average
Cincinnati, lovingly called “Queen City,” should be on your list of places to live if you’re looking for affordability. House prices are well below the national average, while everyday prices of goods and services likely won’t break your bank.
Cincinnati has begun evolving beyond its industrial roots, embracing growth and modernization. Revitalization continues to play a role in residents’ lives, as the city pushes to improve infrastructure and spur economic growth. The recently-completed Over-the-Rhine project transformed Cincinnati’s downtown into a shopping and entertainment destination, while the Ohio Riverfront gained a hip new neighborhood, called The Banks.
Beyond a low cost of living, a bustling arts scene, storied architecture, and a famous affection for chili give Cincinnati its own distinctive character.
Income needed to afford median-priced home: $70,709
Cost of living: 2% higher than the national average
One of the most influential cities in American history, Philadelphia is also among the most affordable. Eras, cultures, and personalities collide throughout every neighborhood of the rapidly changing city, bringing people together to enjoy its beauty. House prices are $150,000 below the national average, while rents trend higher.
If house prices are out of reach, you may be able to get help. The city recently announced $15,000 grants to help first-time homebuyers, along with further development of affordable housing units.
But living in Philly isn’t just about saving money and enjoying iconic food; it’s about soaking in centuries of history and enjoying a culture that never quits. Historic landmarks like Independence Hall sit alongside modern galleries and performance spaces in Center City, while the locals’ passion for Eagles, Phillies, and 76ers rivals any fan base around. Riverfront parks, old cobbled streets, and passionate locals make it a wonderful place to live.
Experts suggest spending less than 30% of your income on housing, but that may be unrealistic in today’s market, as a majority spend more than that. Regardless, it’s important to determine how much home you can afford. There are a few ways to do this.
Redfin’s Affordability Calculator is a great place to start if you’re in the market for a house. Simply input your annual household income, monthly debts, and desired down payment, and you’ll discover what you can afford.
You can pair this with our Mortgage Calculator to get a complete picture of what your monthly housing payments could be. If you decide you’re ready to enter the market, make sure to get pre-approved for a mortgage to get the ball rolling smoothly.
If you’re a renter, use our Rental Affordability Calculator to see how much rent you can afford in cities across the country. You may also decide it’s time to move from renting to owning, at which point you can use the Rent vs. Buy Calculator to see which option is more affordable.
Rankings are based on a Redfin analysis of housing affordability among the 50 largest U.S. metropolitan areas. Data through January 2025.
We ranked cities on the share of home listings that were affordable to someone making the area’s median income. A home was considered “affordable” if its corresponding monthly payment was no more than 30% of median monthly earnings, assuming a 20% down payment, typical taxes and fees, and 30-year mortgage. In short, we ranked places with the smallest differences between housing costs and wages.
We also looked at a city’s median household income, median house price, median rent price, the income required to purchase a typical house, and the cost of living, but these did not influence rankings.
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