The busy spring and summer real estate season is upon us, and while some buyers will find great deals in the fall and winter, many hopeful homeowners are already strategizing for next year and planning for 2025 opportunities now.
But what will the housing market look like in 2025, especially for middle-class buyers who see opportunities passing by because of very low inventory and very high interest rates in 2024?
Find Out More: The 20 Best Cities You Can Buy a Home for Under $100K
Trending Now: Become a Real Estate Investor for Just $1K Using This Bezos-Backed Startup
GOBankingRates spoke with Danny Colacicco, founder and CEO of Panda Pro Home Buyers in Baltimore, and Jonathan Carcone, owner of 4 Brothers Buy Houses in Washington, DC. and affordable buying opportunities in attractive places to live.
Rich people know the best money secrets. Learn how to copy.
Baltimore
Colacicco thinks the largest city in Maryland now has some golden opportunities in 2025 – and not just because it has shares in the market.
“Baltimore is a top choice for middle-class homebuyers because of its low median home prices and affordable cost of living,” he said.
The average home there is selling for less than $189,000 despite a 5.6% year-over-year price increase that shows the city is growing — and the cost of living is 7.4% below the national average.
“In recent years, the city’s real estate market has boomed, with an increase in job opportunities and overall economic growth,” Colacicco said. “The city has a wide variety of housing options, from historic row houses to modern apartments, making it attractive to different types of buyers. The city also has good public transportation and easy access to major cities like Washington, DC, making it a great location which is convenient for commuters.
Read Next: The 50 Safest and Most Affordable US Cities to Live In
Fort Wayne, Indiana
Colacicco calls Fort Wayne “a hidden gem for middle-class homebuyers.”
“The city has undergone significant revitalization in recent years, with the development of new shopping centers and entertainment districts,” he said. “The median home price in Fort Wayne is lower than other cities, making it an attractive option for people looking to buy their first home or upgrade to a bigger place.”
The average property sells for about $233,000, and the cost of living is 18% lower than the national average.
“With a strong labor market and low cost of living, Fort Wayne offers the perfect balance of affordability and quality of life,” Colacicco said.
Wichita, Kansas
Colacicco also thinks Kansas’ largest city will be another top choice for middle-class homebuyers in 2025.
“The median home price in Wichita is lower than the national average, making it an attractive option for people looking to save money to buy a home,” he said.
The typical home there sells for less than $200,000, and the cost of living is 17.2% lower than the US average.
“In addition to its affordability, Wichita also has a strong job market and a thriving arts and culture scene,” Colacicco said. “This makes the city a great place for families who want access to quality education and entertainment options without breaking the bank.”
Youngstown, Ohio
Carcone has its eyes on the city that US News and World Report ranks as one of the best places to live in America in 2023 and the 9th best place in the country to retire in 2024.
“Located in northeast Ohio, Youngstown is consistently ranked as one of the most affordable cities in the United States,” he said. “It will also remain the top choice for middle-class homebuyers in 2025.”
A typical home there sells for $59,000, and the cost of living is more than 25% below the national average.
“This makes it an attractive option for first home buyers or those looking for more affordable housing options,” said Carcone. “In addition to its affordability, Youngstown has a strong economy with major industries such as steel production, healthcare and education. The cost of living is also lower compared to other large cities, making it a desirable place to live and raise a family.
Huntsville, Alabama
Carcone also recommends middle-class buyers look in Huntsville, where the cost of living is about 6% lower than the national average.
“The median home price in this Southern city is currently around $281,000, which is less than the national average,” he said.
The bottom line, in fact – the national average is closer to $361,000.
“One of the main factors contributing to Huntsville’s affordability is its strong labor market,” Carcone said. “It has become a hub for the technology and aerospace industries, with major companies like NASA, Boeing and Lockheed Martin located in the city. Huntsville also offers a great quality of life with a low crime rate, good schools and plenty of recreational activities. This makes it a great place to live.” ideal for families or young professionals looking to buy their first home.
Des Moines, Iowa
Carcone’s final choice is Iowa’s capital city, where the typical home sells for less than $207,000.
“Located in the heart of America, Des Moines is known not only for its affordability but also for its livability,” he said. “Des Moines has a diverse economy with major industries such as insurance, finance and healthcare. It also offers a strong sense of community and a low cost of living, making it an ideal location for middle-class homebuyers.
The cost of living is 13.4% lower than the national average.
“This city has been recognized for its amenities and quality of life,” Carcone said. “It has a vibrant arts and culture scene, lots of parks and green spaces, and highly rated schools. It makes it a great choice for people who want to live in a friendly and affordable city.
All home prices are from Zillow, and all cost of living data is from Sperling’s BestPlaces.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: I’m a Real Estate Expert: These 6 Cities Will Be Most Affordable for Middle-Class Homebuyers in 2025
