In this article, we will be covering the 25 most underpriced housing markets in the US in 2024. If you wish to skip our detailed analysis, you can move directly to the 5 Most Underpriced Housing Markets in the US in 2024.
The Current US Housing Market and Price Dynamics
The spring housing season in the United States might be a sigh of relief for many home buyers. According to a report by Zillow, the new listings of existing homes on the real estate marketplace went up by 21% year-over-year in February. Many sellers who had been holding on to their homes amidst high mortgage rates in 2023 are expected to return to the market. Dallas, Minneapolis, and Austin witnessed many sellers coming back to the market. Additionally, the total national inventory has increased by 12% as compared to 2023. New listings are especially climbing in the South, with Dallas, Tampa, Orlando, and Miami recording significant annual increases in inventory. You can also take a look at the best states for first-time homebuyers.
As of February, the typical home value in the US is $349,216. This value is 40.8% higher than the pre-pandemic period. 47 of the 50 largest metro areas recorded a year-over-year rise in home values. Some of these include Hartford, San Diego, San Jose, Boston, and Providence. Some of the overpriced US housing markets have been previously covered. On the other hand, prices dropped on a yearly basis in New Orleans by 7.5%, Austin by 5.1% and San Antonio by 2.5%.
The recent trends in the US housing market in 2024 imply different scenarios. Either the decreasing mortgage rates could result in a sustainable trend or a temporary spark that has motivated many would-be buyers already. For the week ending March 14, Realtor reported that the average rate for a 30-year fixed home loan dropped from 6.88% to 6.74%. The annual listing price growth also declined in the week ending March 9, thereby recording the first week of year-over-year price drops since July 2023. Affordable homes within the price bracket of $200,000 and $350,000 have also recorded an increase.
Homebuilders Offering Affordable Living Options
KB Home (NYSE:KBH), Lennar Corporation (NYSE:LEN), and LGI Homes, Inc. (NASDAQ:LGIH) are some of the reputable homebuilders that offer a diverse range of reasonably priced real estate in the United States. Let’s take a look at some of the new communities from these firms.
KB Home (NYSE: KBH) is one of the largest home builders in the United States. The firm builds quality homes that are customized as per the buyer’s preference and available budget. On March 15, KB Home (NYSE: KBH) reported that the company planned the grand opening of its newest community in Jacksonville for March 16. The new community ‘Hawkes Meadow’ allows easy access to downtown Jacksonville and major employers in the area. Residents can also visit Jacksonville Zoo and Gardens and River City Marketplace while staying in the community. The homes have been priced from the $280,000s.
Lennar Corporation (NYSE:LEN) is an American home construction company that constructs affordable, move-up, and active adult homes. It also engages in the development of high-quality multifamily rental properties. On March 12, Lennar Corporation (NYSE:LEN) reported the start of sales in its new community based in Plant City, Florida. The community offers a wide range of bedroom configurations to help customers find homes suited to their needs. A future swimming pool, cabana, and fully equipped playground are some of the included amenities. Pricing for homes at Park East starts in the low $300,000s.
LGI Homes, Inc. (NASDAQ:LGIH) engages in the design, construction, and sale of homes across 36 markets in 21 states. The company has closed more than 65,000 homes in its history. On March 1, LGI Homes, Inc. (NASDAQ:LGIH) announced its community ‘Bold Springs Farm’ in the Atlanta market. Families can resort to living in the new community since it offers family-friendly amenities and top-rated education. Move-in ready homes at Bold Springs Farm start in the $380,000s.
You can also view the largest homebuilders in the USA. Without further ado, let’s move to the 25 most underpriced housing markets in the US in 2024.
25 Most Underpriced Housing Markets in the US in 2024
Our Methodology:
In order to compile a list of the 25 most underpriced housing markets in the US in 2024, we sourced data from Zillow. An underpriced housing market is where the median list price tends to be lower than the typical home value. Hence, we calculated the difference between average home value and median list price for US metros. Both metrics have been acquired from Zillow and are available as of February 2024. The average home values have been rounded off for better representation.
All metros where the average home value exceeded the median list price by the highest difference were included in our list. The list is in ascending order of the difference between average home value and median list price. This implies that a market where the average home value is significantly higher than the median list price is the most underpriced market. The list is arranged in ascending order of the calculated difference.
25 Most Underpriced Housing Markets in the US in 2024
25. Van Wert, Ohio
Average Home Value (February): $160,108
Median List Price (February): $134,967
Difference between Average Home Value and Median List Price: $25,141
As of February, Van Wert records a median list price of $134,967 which is lower than the average home value in the city. This represents an underpriced housing market.
24. Detroit, Michigan
Average Home Value (February): $240,536
Median List Price (February): $211,633
Difference between Average Home Value and Median List Price: $28,903
While the average home value in Detroit was recorded at $240,536 in February, the median list price was $211,633. Hence, the city’s housing market is underpriced.
23. Trenton, New Jersey
Average Home Value (February): $399,263
Median List Price (February): $368,000
Difference between Average Home Value and Median List Price: $31,263
Trenton ranks as another underpriced housing market in the US in 2024 since the median list price in the city is $31,263 lower than its average home value.
22. Cape Coral, Florida
Average Home Value (February): $396,012
Median List Price (February): $364,633
Difference between Average Home Value and Median List Price: $31,379
The city of Cape Coral is situated in Lee County, Florida. As the city’s average home value exceeded its median list price in February, the local housing market is underpriced.
21. Port Lavaca, Texas
Average Home Value (February): $184,787
Median List Price (February): $151,600
Difference between Average Home Value and Median List Price: $33,187
The median list price in Port Lavaca is less than its average home value by $33,187. Hence, Port Lavaca is one of the most underpriced US housing markets in 2024.
20. Harrisburg, Pennsylvania
Average Home Value (February): $274,217
Median List Price (February): $240,600
Difference between Average Home Value and Median List Price: $33,617
Harrisburg is the capital city of Pennsylvania. The city’s housing market is underpriced since its median list price is $33,617 lower than the average home value.
19. Hannibal, Missouri
Average Home Value (February): $175,396
Median List Price (February): $141,167
Difference between Average Home Value and Median List Price: $34,229
Hannibal ranks as one of the most underpriced housing markets in the US in 2024. As of February, the average home value in the city exceeds its median home price by $34,229.
18. Seattle, Washington
Average Home Value (February): $719,217
Median List Price (February): $683,317
Difference between Average Home Value and Median List Price: $35,900
The seaport city of Seattle ranks among the US housing markets where the median list prices are less than the average home values. The difference between the two was recorded at $35,900 in February.
17. Jackson, Wyoming
Average Home Value (February): $1,441,041
Median List Price (February): $1,405,000
Difference between Average Home Value and Median List Price: $36,041
The average home value in Jackson was recorded at $1,441,041 in February while the median list price was $36,041 lower. Hence, Jackson is one of the most underpriced housing markets in the US in 2024.
16. St. Louis, Missouri
Average Home Value (February): $242,214
Median List Price (February): $202,800
Difference between Average Home Value and Median List Price: $39,414
The 25 most underpriced US housing markets in 2024 rank St. Louis as well. As of February, the city’s average home value exceeds its median list price by $39,414.
15. Philadelphia, Pennsylvania
Average Home Value (February): $347,371
Median List Price (February): $305,000
Difference between Average Home Value and Median List Price: $42,371
Philadelphia is a populous city in Pennsylvania. As recorded in February, the median list price in the city is lower than its average home value by $42,371.
14. Rochester, New York
Average Home Value (February): $233,753
Median List Price (February): $189,233
Difference between Average Home Value and Median List Price: $44,520
The city of Rochester tends to be an underpriced housing market in the US in 2024. This is because the average home value in the city surpasses its median list price.
13. Menomonie, Wisconsin
Average Home Value (February): $274,941
Median List Price (February): $230,333
Difference between Average Home Value and Median List Price: $44,608
As evident from the difference of $44,608 between the average home value and the median list price in Menomonie, the city ranks as an underpriced US housing market in 2024.
12. La Grande, Oregon
Average Home Value (February): $296,413
Median List Price (February): $250,833
Difference between Average Home Value and Median List Price: $45,580
La Grande is based in Union County, Oregon. As of February, the city’s median list price is $45,580 lower than its average home value.
11. Baltimore, Maryland
Average Home Value (February): $373,454
Median List Price (February): $323,300
Difference between Average Home Value and Median List Price: $50,154
As of February, Baltimore records an average home value of $373,454 while its median list price is $323,300. This indicates that the city’s housing market is underpriced.
10. Hereford, Texas
Average Home Value (February): $152,038
Median List Price (February): $101,711
Difference between Average Home Value and Median List Price: $50,327
The median list price of $101,711 in Hereford is lower than the city’s average home value. Thus, Hereford ranks as another underpriced housing market in the US in 2024.
9. Eau Claire, Wisconsin
Average Home Value (February): $287,728
Median List Price (February): $234,933
Difference between Average Home Value and Median List Price: $52,795
Eau Claire is located in Eau Claire and Chippewa counties in Wisconsin. The city’s underpriced housing market is evident from the fact that the average home value is $52,795 higher than its median list price.
8. Boone, North Carolina
Average Home Value (February): $477,496
Median List Price (February): $421,000
Difference between Average Home Value and Median List Price: $56,496
Boone is positioned in North Carolina and is an underpriced US housing market. Boone boasts a median list price of $421,000 which is lower than its average home value.
7. Milwaukee, Wisconsin
Average Home Value (February): $327,778
Median List Price (February): $266,567
Difference between Average Home Value and Median List Price: $61,211
As of February, the average home value of $327,778 in Milwaukee exceeds its median list price of $266,567. Hence, Milwaukee ranks among the most underpriced US housing markets in 2024.
6. Santa Cruz, California
Average Home Value (February): $1,148,405
Median List Price (February): $1,065,167
Difference between Average Home Value and Median List Price: $83,238
Santa Cruz is a city situated in Northern California. The city’s housing market is underpriced since the median list price is lower than the average home value by $83,238.
Click to continue reading and see 5 Most Underpriced Housing Markets in the US in 2024.
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Disclosure: None. 25 Most Underpriced Housing Markets in the US in 2024 is originally published on Insider Monkey.