US cities with the most homes under $200,000

High interest rates and insurance costs have significantly impacted the affordability of homes in the current market4. Soaring home prices, coupled with increasing interest rates, have made it difficult for many potential buyers to afford a home. Additionally, rising insurance costs have added to the financial burden of homeownership, further exacerbating the affordability crisis. These factors have pushed the cost of buying a home to a fresh record, leaving many everyday Americans priced out of the housing market. As a result, the share of homes sold under the $200,000 price point has gone from roughly half of all sales to less than a quarter of sales in recent years.

The 47.1% increase in average U.S. home prices since 2020 can be attributed to several factors. These include historically low mortgage rates during the pandemic, a shortage of available homes due to underbuilding and reluctance of homeowners to sell, increased demand for suburban and rural homes driven by the pandemic, and a surge in housing prices due to inflation and the housing market's tightness1. The combination of these factors has created a challenging environment for first-time homebuyers and those seeking affordable housing options.