The Most Undervalued Housing Markets, According to Realtors

G. Brian DavisSat, March 21, 2026 at 3:30 PM UTC

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Over the last 12 months, U.S. home values have hovered around record highs of roughly $360,000, according to Zillow.

For many working- and middle-class Americans, those prices put homeownership out of reach. But not every market costs that much, including several major cities with full amenities.

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Explore these undervalued housing markets recommended by real estate agents.

Detroit

With an average home price of just $76,340, Detroit boasts some of the most affordable housing in the country.

"Nowadays, the average homeowner in Detroit only pays 17% of their income on housing costs, which is less than half of the national average of around 36%," said Realtor and investor Eric Field of Big Door Home Buyers. "Detroit is in the midst of a huge revival, thanks to its inexpensive living costs and its thriving arts and music culture."

Motor City also ranked second healthiest on the housing market index from U.S. News & World Report. Detroit has come a long way since emerging from bankruptcy in 2014.

Philadelphia

Ranking third on the U.S. News & World Report list, Philadelphia has also stayed affordable while its neighbors have exploded in cost. The average home there costs $228,621, according to Zillow — 36% cheaper than the national average.

"For a large East Coast city, Philly is incredibly underappreciated," said Field. "It's a walkable city, a historic city, and it's relatively affordable compared to New York City, Boston or Washington, D.C."

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Cleveland

The average home in Cleveland costs just $111,917, coming in 69% cheaper than the nationwide average. Like Detroit, it also boasts all the amenities of a major city, from an international airport to world-class dining, a thriving arts scene and major league sports teams.

Realtor and investor Ryan Dossey of SoldFast.com points to Cleveland's average of 18 days on market for listings, compared with 29 nationwide. "The city has much higher demand for housing than the current supply. But even though the demand is there, builders have yet to fully seize on the opportunity."

Rochester, New York

Rochester claims similar pricing to Philadelphia, with home prices averaging $227,136.

Despite, or perhaps because of, low prices, homes are flying off the market in Rochester. The average listing lasts just 10 days — a third of the national average of 29.

In fact, Realtor.com ranked Rochester second among the top 100 housing markets entering 2026. "Rochester has a fantastic quality of life, with picturesque views of Lake Ontario," said Field. "All told, its entry costs are incredibly low."

San Antonio

Home prices floundered in 2025 in San Antonio, but not because people stopped moving there. In an effort to keep housing affordable, the city approved enormous new housing construction over the last three years. That new supply outpaced demand, even as transplants from California and other expensive states kept coming.

The city's median home price of $245,985 belies its big-city amenities and metro population of more than 2.7 million, according to Census Reporter. "Nearly two-thirds of home sales close under list price, which indicates just how much power current buyers possess," said Levi Rodgers, owner of VA Loan Network. "The city supports a huge and diverse jobs base, for a price per square foot well below similarly sized Texas cities."

San Antonio also ranked fifth on the housing market index list from U.S. News & World Report, showcasing the city's health even as buyers take control of the market.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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Source: “AOL Money”