Want to buy your first home? These are the US cities where you still have a chance – if you’re willing to compromise

DAILYMAIL.COM • 1h ago

By SADIE WHITELOCKS, US SENIOR REPORTER Updated: 05:10 15 Oct 2026

With house prices continuing to stretch first-time buyers’ budgets, getting a foot on the property ladder can feel like a fantasy reserved for those with generous parents or a lottery-winning ticket.

But there are still pockets of the US where buyers can find relatively affordable properties, with Midwestern cities emerging as some of the strongest contenders.

A new analysis from Realtor.com reveals that starter homes account for a larger share of available properties in markets such as Toledo, Ohio, St. Louis, Missouri, and Detroit, Michigan, than in many other parts of the country.

However, there is a catch: A cheap listing does not necessarily mean a move-in-ready home in a desirable neighborhood – buyers may need to compromise on size, location or finishes to make the numbers work.

Realtor.com defines a starter home as a property listed at no more than 80 percent of the median listing price in its metropolitan area during a given period.

By that measure, the entry-level market has become increasingly squeezed.

Nationally, starter homes accounted for around 36 percent of active listings, down from nearly 38 percent seven years ago, while their median price climbed to $340,000 from $260,000 over the same period.

That leaves roughly 21,000 fewer starter homes available than in 2019, even as prices have surged by more than 30 percent.

Researchers examined listing data across 8,300 ZIP codes in the 100 largest US metropolitan areas to identify where affordable properties remain available and how widely they are distributed.

‘The Midwest has a higher share of starter homes than the rest of the US largely because home prices experienced more muted growth during the 2010s and early pandemic years,’ Nicholas Gerli, founder of real estate data platform Reventure, told the Daily Mail.

‘Meanwhile, incomes grew at a rate similar to the national average over the same period.’

Realtor.com’s findings suggest buyers don’t necessarily need to confine their search to neighborhoods dominated by cheaper homes.

Around three in five ZIP codes offer a mixture of lower-priced properties and more expensive listings, while more than 18 percent of neighborhoods are dominated by starter homes.

‘The takeaway here is that most starter-priced homes aren’t found in a clearly “starter” ZIP code, but sit in mixed or even trade-up-leaning areas,’ Realtor.com senior economist Hannah Jones said.

For buyers watching every dollar, the Midwest and Rust Belt stand out.

Toledo leads the country for the share of starter homes, at 42.1 percent of its housing inventory, followed by St. Louis at 40.7 percent and Detroit at 39.8 percent. Akron, Ohio, also performs strongly, with starter homes accounting for 39.3 percent of listings.

These markets have benefited from below-average price growth since 2019 and a substantial supply of entry-level properties, according to Jones.

But the proportion of cheaper homes tells only part of the story. Buyers also need to consider schools, safety, transport links, local amenities and the cost of bringing an older property up to scratch.

Kansas City and St. Louis stand out for combining a higher-than-average share of starter homes with a broad choice of neighborhoods dominated by entry-level properties.

Kansas City has 39 such neighborhoods, while St. Louis has 36, according to the study.

Rosemary Rieke Male, a real estate agent with Better Homes and Gardens Real Estate Kansas City Homes, told Realtor.com that the city’s surrounding areas can offer attractive prices without putting buyers too far from the action.

She also highlighted the highway network, which makes it easier to travel around the metropolitan area.

In August, the median listing price for a Kansas City starter home was $312,000.

What that buys depends on the neighborhood. In Johnson County, buyers may find a two- or three-bedroom property, sometimes with a garage, while older, smaller bungalows in historic city neighborhoods such as Brookside Park and Waldo offer another option.

Heading north can help buyers stretch their budget further.

St. Louis makes a particularly compelling case for buyers hoping to purchase a home they can improve over time.

The median asking price for a typical starter home was $231,000, giving buyers a lower entry point than many expensive coastal markets.

AJ Graham, an agent at ReeceNichols, told Realtor.com that buyers could find homes that were structurally sound and ready for some updating, rather than having to settle for properties requiring extensive repairs.

That could mean an older house with solid foundations and dated decor – hardly a glossy renovation-show reveal, but potentially a sensible starting point for someone willing to roll up their sleeves.

Graham highlighted St. Louis Hills, around 10 miles from downtown, for its neighborhood coffee shops, restaurants and local shopping.

Buyers seeking highly rated school districts in St. Louis County may need to spend more or compromise on property size and finishes.

There could also be more homes coming onto the market. New construction is planned on the city’s north side to replace properties lost to a tornado the previous year, while the city has allocated $120 million toward recovery and neighborhood rebuilding.

Not everyone is convinced that a high share of starter homes automatically makes a city affordable for first-time buyers.

In a Reddit discussion about the findings, one commenter questioned whether the definition captures too many properties needing major repairs.

They argued that homes priced below 80 percent of a local median can include investment properties requiring extensive work, rather than realistic options for someone hoping to move straight in.

Others pointed out that the label can conceal compromises involving neighborhood conditions, schools and ongoing costs.

One Denver resident, for example, said some lower-priced properties needed significant work, while homeowners’ association fees on certain townhouses could add another financial headache.

The discussion also highlighted a more fundamental problem: affordability is relative. A home that looks inexpensive compared with its local market may still be beyond a first-time buyer’s budget, particularly once mortgage payments, insurance, taxes and maintenance are included.

Still, some Reddit users pushed back against the idea that affordable homes are necessarily unlivable.

One St. Louis homeowner described buying a roughly century-old house for $230,000, with three bedrooms, two bathrooms, a yard and a large basement. They said major internal updates and a replacement roof had already been completed.

The example illustrates why buyers should look beyond appearances and headline prices to assess a property’s actual condition and long-term costs.

Graham’s advice is to resist falling in love with cosmetic features before checking the fundamentals.

New kitchens, fashionable finishes and pristine interiors are tempting, but properties offering all the bells and whistles can command a premium and leave less scope for future improvements to build equity.

Instead, he told Realtor.com that he liked seeing first-time buyers consider older homes that had been well maintained, even if their decor was dated.

A sound roof, reliable mechanical systems and a solid structure can matter far more than fashionable cabinets or a fresh coat of paint.

For buyers prepared to be flexible, markets such as Toledo, Kansas City and St. Louis offer places to start looking – but the cheapest listing should never be mistaken for the best deal.

The real prize is a home that fits the budget, works for everyday life and does not turn the dream of ownership into an endless renovation bill.

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