10 Affordable Cities To Live in With Potential ‘Million-Dollar Markets'
Median home prices reached $403,700 in the first quarter of 2025, according to the National Association of Realtors. While analysts expect modest growth this year and next due to soft demand, some markets are poised to see major surges over the longer term.
Find Out:
Consider This:
A recent Realtor.com analysis of America's 100 largest metropolitan areas identified the most affordable markets where median prices could hit $1 million by 2033. The forecasts are based on growth from 2014 to 2019, which economists applied to 2023 prices to make their predictions.
GOBankingRates has listed the cities, their current median sale prices (according to Realtor.com) and the price predictions below. To help you put those figures in context, the list includes cost-of-living and median income data from Payscale and the U.S. Census, respectively.
Most of these cities are in the Western U.S., but cities in Hawaii and Massachusetts also made the list.
Be Aware:
Median sale price: $498,500
2028 price forecast: $735,026
2033 price forecast: $1,162,910
Realtor.com's analysis found that Boise home prices grew 58.2% from 2014 to 2019. The economists used that figure to forecast growth for five- and 10-year periods beginning with 2023.
Note: Median household income is $81,308, according to the U.S. Census, using 2023 dollars. That's less than 1% above the national median of $80,613. But Paysale estimated Boise's cost of living to be 4% higher than the national average.
Median sale price: $522,200
2028 price forecast: $724,614
2033 price forecast: $1,064,147
Sacramento home prices grew 46.9% from 2014 to 2019 and stood at $493,414 in 2023, the base year for Realtor.com's projections. They're already up nearly 6% since then.
The current sale price of $522,200 will stretch the budget of a family earning a median household income of $74,925, especially considering that the cost of living is 10% higher than the national average.
Median sale price: $542,300
2028 price forecast: $726,105
2033 price forecast: $1,051,838
Prices are already up 8% since 2023, which is consistent with 44.9% growth from 2014 to 2019. While median household income in Portland is well above average at $88,792, so is the cost of living, which is 19% higher than average.
Median sale price: $460,000
2028 price forecast: $680,980
2033 price forecast: $1,019,929
If the 2023-to-2028 increase in Colorado Springs home prices matches the 49.8% increase from 2014 to 2019, what is now only a marginally affordable market could be out of reach of many, if not most, current residents. Median household income is just over $83,000, and the cost of living is 5% higher than average.
Median sale price: $430,000
2028 price forecast: $915,467
2033 price forecast: $1,446,731
The Stockton real estate market saw the greatest 2014-2019 increase of any city on this list: a whopping 58%.
Home prices are already well above average, and the overall cost of living is 19% higher than average. That makes it difficult for a household earning the city's median income, $76,851, to buy. And it's only going to get harder, with prices expected to more than double by 2028 and hit $1,446,731 by 2033.
Median sale price: $620,000
2028 price forecast: $842,932
2033 price forecast: $1,296,676
Denver is the second-fastest-growing market on this list, with 53.8% growth between 2014 and 2019, and about 109% growth expected from now through 2033. That could make real estate a tough sell for families with income at or below the $91,681 median. However, if you can swing it and overall living costs that are 9% above average, a Denver home purchase could be a great long-term investment.
Median sale price: $485,000
2028 price forecast: $784,301
2033 price forecast: $1,103,325
Sacramento is one of the more affordable cities listed here, with median home prices well below $500,000 and median household income of $83,753, although the cost of living is 25% higher.
Home prices grew 40.7% from 2014 to 2019. At that rate, they'll hit a median $1,103,325 by 2033.
Median sale price: $799,000
2028 price forecast: $786,000
2033 price forecast: $991,804
Boston home prices increased just 26.2% from 2014 to 2019, and they could fall over the next few years before heading upward again. That's likely good news for Boston renters who are already hard-pressed to buy on a median income of $94,755. It's not just home prices that are high — the overall cost of living is 46% higher than the national average.
Median sale price: $610,000
2028 price forecast: $883,931
2033 price forecast: $1,143,830
Hawaii has a well-deserved reputation for high home prices, but Honolulu is a pocket of relative affordability. Living costs are 85% higher than the national average, in large part because of home prices. But with a median household income of $104,264, earnings are also well above average.
Honolulu home prices grew a robust 29.4% from 2014 to 2019, and they're poised to reach over $1.14 million by 2033.
Median sale price: $900,000
2028 price forecast: $1,015,739
2033 price forecast: $1,485,885
The priciest home market on Realtor.com's list saw 46.3% growth from 2014 to 2019, and if the projections are correct, it'll be the first to reach $1 million.
The cost of living here is 46% above average due primarily to housing. But median household income is 51% above average — $121,984.
More From GOBankingRates
4 Affordable Car Brands You Won't Regret Buying in 2025
4 Housing Markets That Have Plummeted in Value Over the Past 5 Years
This article originally appeared on GOBankingRates.com: 10 Affordable Cities To Live in With Potential 'Million-Dollar Markets'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hill
a day ago
- The Hill
Homesellers now outnumber buyers by half a million: Redfin
(NewsNation) — After years of rising prices and limited inventory, the housing market is undergoing a major shift: Sellers now far outnumber buyers. As of April, the U.S. housing market had nearly 500,000 more sellers than buyers — the largest seller surplus on record, according to a new Redfin estimate. Aside from the start of the pandemic in April 2020, homebuyers haven't been this scarce since at least 2013, the earliest year for which Redfin has data. As recently as February 2024, the number of buyers and sellers was roughly balanced, but the gap has steadily widened over the past year. Redfin now expects home prices to drop 1% by the end of 2025. The online real estate brokerage highlighted three factors tilting the balance of power toward buyers: recent economic uncertainty, high home prices and a mortgage rate lock-in effect that is beginning to ease. The new dynamics have given potential homebuyers more negotiating power than they've had in years, but so far, sellers have been slow to react. 'A lot of sellers have yet to see or accept the writing on the wall,' Redfin Senior Economist Asad Khan said in a statement. 'Many are still holding out hope that their home is the exception and will fetch top dollar.' Florida sellers are feeling the most pressure in today's market, with the state home to six of the top 10 buyer's markets, according to Redfin. In cities like Miami, West Palm Beach and Fort Lauderdale, sellers outnumbered buyers roughly 3 to 1 in April. The Sunshine State's housing market has been cooling for the past year, partly due to a homebuilding boom but also because of natural disaster concerns and rising homeowner insurance costs. Skyrocketing HOA fees haven't helped either, and buyers are souring on condos especially fast. Nationally, 31 of the top 50 metros are now considered 'buyer's markets,' per Redfin, meaning potentially lower home prices as sellers compete for buyers. Those buyer-friendly markets are heavily concentrated in the Sun Belt and on the West Coast. Elsewhere, particularly in the Midwest and Northeast, sellers still hold the power. In April, buyers outnumbered sellers by almost 2 to 1 in Newark, New Jersey, making it the top seller's market. Nassau County, New York, and Montgomery County, Pennsylvania, also heavily favored sellers. The housing market is considered balanced in St. Louis, Virginia Beach and Kansas City, where the number of buyers and sellers is relatively equal. Despite the recent shift toward buyers, homeownership is likely to remain out of reach for millions of Americans. Wages haven't kept up with rising home prices, and the supply of affordable homes remains well short of demand. In March, just 21.2% of home listings were affordable for buyers earning between $75,000 and $100,000 a year, according to a recent analysis by the National Association of Realtors (NAR). 'Without a significant boost in housing inventory at price points below $260,000, the path to homeownership will remain blocked for millions of Americans,' the NAR report said. The average rate on a 30-year fixed mortgage rose to 6.89% this week, the highest level since early February, according to Freddie Mac. Top 10 buyer's markets in April 2025, according to Redfin Top 7 seller's markets in April 2025, according to Redfin
Yahoo
a day ago
- Yahoo
Homesellers now outnumber buyers by half a million: Redfin
(NewsNation) — After years of rising prices and limited inventory, the housing market is undergoing a major shift: Sellers now far outnumber buyers. As of April, the U.S. housing market had nearly 500,000 more sellers than buyers — the largest seller surplus on record, according to a new Redfin estimate. Aside from the start of the pandemic in April 2020, homebuyers haven't been this scarce since at least 2013, the earliest year for which Redfin has data. Homebuying season: 4 things to know about the 2025 housing market As recently as February 2024, the number of buyers and sellers was roughly balanced, but the gap has steadily widened over the past year. Redfin now expects home prices to drop 1% by the end of 2025. The online real estate brokerage highlighted three factors tilting the balance of power toward buyers: recent economic uncertainty, high home prices and a mortgage rate lock-in effect that is beginning to ease. The new dynamics have given potential homebuyers more negotiating power than they've had in years, but so far, sellers have been slow to react. 'A lot of sellers have yet to see or accept the writing on the wall,' Redfin Senior Economist Asad Khan said in a statement. 'Many are still holding out hope that their home is the exception and will fetch top dollar.' Florida sellers are feeling the most pressure in today's market, with the state home to six of the top 10 buyer's markets, according to Redfin. In cities like Miami, West Palm Beach and Fort Lauderdale, sellers outnumbered buyers roughly 3 to 1 in April. The Sunshine State's housing market has been cooling for the past year, partly due to a homebuilding boom but also because of natural disaster concerns and rising homeowner insurance costs. Skyrocketing HOA fees haven't helped either, and buyers are souring on condos especially fast. Homesellers want nearly $39K more than buyers will pay Nationally, 31 of the top 50 metros are now considered 'buyer's markets,' per Redfin, meaning potentially lower home prices as sellers compete for buyers. Those buyer-friendly markets are heavily concentrated in the Sun Belt and on the West Coast. Elsewhere, particularly in the Midwest and Northeast, sellers still hold the power. In April, buyers outnumbered sellers by almost 2 to 1 in Newark, New Jersey, making it the top seller's market. Nassau County, New York, and Montgomery County, Pennsylvania, also heavily favored sellers. The housing market is considered balanced in St. Louis, Virginia Beach and Kansas City, where the number of buyers and sellers is relatively equal. Despite the recent shift toward buyers, homeownership is likely to remain out of reach for millions of Americans. Wages haven't kept up with rising home prices, and the supply of affordable homes remains well short of demand. In March, just 21.2% of home listings were affordable for buyers earning between $75,000 and $100,000 a year, according to a recent analysis by the National Association of Realtors (NAR). 'Without a significant boost in housing inventory at price points below $260,000, the path to homeownership will remain blocked for millions of Americans,' the NAR report said. The average rate on a 30-year fixed mortgage rose to 6.89% this week, the highest level since early February, according to Freddie FL West Palm Beach, FL Fort Lauderdale, FL Austin, TX Jacksonville, FL Tampa, FL Phoenix, AZ Las Vegas, NV Orlando, FL Nashville, TNNewark, NJ Nassau County, NY Montgomery County, PA Cleveland, OH New Brunswick, NJ Providence, RI Baltimore, MD Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Newsweek
a day ago
- Newsweek
Millennials Buck Generational Housing Market Trend
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Millennials are the only generation in the United States to have shown an increase in interest in buying a home within the next six months compared to September, according to a new survey from Why It Matters The increase in millennial homebuying intent signals a notable divergence from broader generational trends, suggesting shifting priorities or economic pressures in the largest cohort of American adults. Persistently high mortgage rates and tight housing supply have made homeownership more challenging nationwide. Yet, millennials are demonstrating renewed determination to enter the housing market, even as high borrowing costs stall other groups. Analysts suggest that these shifts may impact broader market conditions, including inventory levels, affordability, and pricing strategies, throughout 2025. What To Know The survey, conducted between April 10 and 11, sampled 2,203 U.S. adults and found that only the millennial generation reported an increased likelihood of purchasing a home in the next six months. The proportion of millennial respondents planning to purchase a home within the next six months increased to 23 percent, up from 15 percent in September 2024. In comparison, overall intent among other generations—and among Americans at large—remained flat or declined. High mortgage rates continue to weigh heavily on Americans' homebuying plans. A majority of Americans, 69 percent, do not plan to engage in a real estate transaction within the next six months. "Despite current market challenges and persistently high mortgage rates, Millennials are showing a notable increase in home buying interest this spring compared to last fall," said Laura Eddy, vice president of research and insights at in the report. "Even though we found a change in Millennial homebuying intent, the influence of mortgage rates cannot be overstated, with the vast majority of Americans, including Millennials, prioritizing lower rates before committing to a purchase. The lock-in effect is still very much in effect " A "House For Sale" sign is displayed in front of a home in Los Angeles on August 30, 2023. A "House For Sale" sign is displayed in front of a home in Los Angeles on August 30, of all respondents reported that they have delayed purchasing a home due to high mortgage rates, a finding similar to that in September. Gen Z was the most cautious of high mortgage rates, preferring to sign a lease rather than take on home ownership. Meanwhile, 41 percent of baby boomers said that mortgage rates do not impact their decision to buy a home. Millennials currently make up 29 percent of homebuyers, the largest portion across all generations. The typical age of a first-time homebuyer was 38 years old in 2024, according to the National Association of Realtors. "While many older households already own their home, and younger households are happy to, or can only afford to, rent, many millennial households are looking to get on the property ladder to start building wealth via homeownership, meaning this generation is a significant share of buyers," Hannah Jones, senior research analyst at told Newsweek. In a separate Realtor survey, 78 percent of potential sellers believed interest rates would either remain the same or increase over the next 12 months. For those who think rates are going to increase, 43 percent said this would increase the likelihood of them selling. What People Are Saying Hannah Jones, senior research analyst at said in the report: "Across much of our research we see a trend where potential homebuyers feel stuck when it comes to buying a home due to their current mortgage rate. "Mortgage rates on top of an insufficient supply of budget-friendly homes complicates the affordability picture for many homeowners, especially first time homebuyers who do not have equity from their existing home to help offset mortgage rates. However, we expect that this lock in effect will ease as more homeowners grow tired of waiting for significant rate changes and as life factors such as jobs, kids and retirements drive more to make a home purchase." Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "Millennials are finally at a stage in life where homeownership feels possible. After years of renting and juggling student debt, many now have stable careers and the financial footing to make a move." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "As a generational group, millennials have suffered the largest blow for the rising prices and mortgage rates of houses in recent years. Many in this generation are entering better jobs with higher pay, and if they haven't taken the dip into home ownership yet, they're more than likely ready to want to dive in now." What Happens Next While some buyers are waiting for interest rates to decrease, experts have warned that rates are unlikely to return to pre-pandemic levels. However, there may be modest decreases that fluctuate with the economy. However, a shift in millennial homebuying could impact prices across housing markets, experts say. "Some millennials have built up enough capital for higher down payments and are ready to settle in," Thompson said. "This wave of demand could put upward pressure on pricing, but if affordability remains a challenge, it may also place a floor under housing prices."
