5 Affordable Cities to Buy a Home in 2024

Many Americans who want to buy a home are having a difficult time. One reason is because there's a shortage of homes listed for sale. This is due to many current homeowners wanting to keep their interest rates, since many of them locked in rates when they were historically low in the wake of the pandemic.

Even when buyers find a home, house prices have risen so quickly over the past few years that many can't find a right-sized home in their price range. The good news is that mortgage rates have begun to cool, and some real estate experts estimate that more homes will come on the market this year.

That could be a boon to the housing market and a few cities in particular. Here are some of the most affordable, according to Realtor.com.

1. Toledo, Ohio

If you're looking for a relatively affordable Midwest city to move to in 2024, Toledo might just be it. Median home prices in the city are 51.6% below the national median.

The city is built along the Maumee River, making it a great location if you love boating and fishing. And if you're not outdoorsy, Toledo's public spaces along the water and downtown riverwalk are perfect for scenic strolls.

2. Rochester, New York

If you love the snow and affordable housing, Rochester should be at the top of your list. Median home prices in the city are 41.2% lower than the national median.

Not only are Rochester homes more affordable than many other places in the U.S., but the local economy is thriving, and the unemployment rate in the city is projected to be just 3.6% by the end of this year.

3. Springfield, Massachusetts

Basketball fans and frugal home buyers both have something to love in Springfield. The city is home to the 40,000-square-foot Naismith Memorial Basketball Hall of Fame, honoring the sport's inventor, Dr. Naismith.

Home buyers looking for a good deal will fall in love with the city's home prices, with median prices 13.3% below the national median.

4. Worcester, Massachusetts

About an hour outside Boston, Worcester may be a good choice for home buyers who want to stay relatively close to the city -- without paying big-city prices. Homes in Worcester are 14.7% above the nation's median price but 41.8% below the Boston Metropolitan Area.

Residents will love the Hanover Theatre, the Worcester Art Museum, and historic Elm Park, which dates back to 1854. The city's current economic growth means that unemployment is projected to be slightly below the national average this year.

5. Grand Rapids, Michigan

Located just to the east of Lake Michigan and right along the banks of the Grand River is the city of Grand Rapids. Home buyers will enjoy the city's Frederik Meijer Gardens & Sculpture Park, Gerald R. Ford Museum, and hiking through over 100 acres of the Calvin Ecosystem Preserve.

Most importantly, potential buyers will find median home listings are 8.2% below the national median.

One crucial step for buying a home right now

In addition to finding an affordable city to move to, home buyers should compare mortgage lenders before purchasing a home. Not all lenders look at your financial situation similarly; one may give better mortgage terms than another.

After saving for a down payment and paying down debts, shopping around for a lender could be one of the most important moves you make before buying a home. Since you'll be paying your mortgage for many years, finding a lender that will offer you the best interest rate could save you thousands of dollars over the life of the loan.

And if you shop around and find that several lenders are offering you the same interest rate, at least you'll know you did everything to get the best deal.