Regional Spotlight 2025: The U.S. Markets Where Homebuying Is Still Feasible — and Where It’s Toughest
In 2025, the U.S. housing market remains defined by two realities: slightly higher home prices and mortgage rates that continue to hover above 6%. For buyers, affordability varies dramatically depending on where they shop — and for lenders, understanding these regional shifts is critical to guiding borrowers and capturing purchase volume.
This regional spotlight breaks down the metros where buying is still within reach and the markets where affordability remains the most strained, along with what these trends mean for digital and eMortgage lenders.
1. The National Backdrop: Affordability Under Pressure
The national median home price is around $440,000, only slightly higher than last year.
30-year mortgage rates sit near 6.2%–6.3%, making monthly payments meaningfully heavier compared to pre-2022 lows.
Inventory has improved modestly, but not enough to counter years of underbuilding in many metros.
As a result, regional affordability gaps are widening, pushing many buyers toward lower-cost Midwest and Heartland metros while coastal markets remain out of reach for the typical household.
2. Markets Where Buying Is Still Feasible
Despite broader affordability challenges, several metros continue to offer reasonable prices, stable job markets, and price-to-income ratios that support first-time buyers.
Most Affordable & Buyer-Friendly Metros (2025)
1. Toledo, Ohio
One of the most affordable major markets in the country. Home values remain far below the national median, offering attainable monthly payments and strong value for first-time buyers.
2. Cleveland & Akron, Ohio
Low medians, steady demand, and relatively slow price appreciation make these metros stand out for budget-conscious buyers.
3. Pittsburgh, Pennsylvania
Combines affordability with strong employment in healthcare, tech, and education. Homes remain accessible even for modest-income households.
4. Buffalo & Rochester, New York
Secondary New York metros offer significantly lower prices than NYC, with growing interest from remote workers and first-time buyers.
5. Indianapolis, Indiana
A growing Midwestern hub with competitive prices, diverse employment, and a strong pipeline of new builds.
6. Oklahoma City & Tulsa, Oklahoma
Reasonable home prices, expanding job markets, and steady inventory make these metros resilient and buyer-friendly.
7. Omaha, Nebraska
Stable economy, manageable home prices, and relatively low competition provide a smooth path for buyers.
8. Cincinnati, Ohio / Northern Kentucky Region
Consistently ranks among the best price-to-income markets, with suburban neighborhoods offering especially strong value.
Why these markets matter for eMortgage lenders:
These metros present high-potential purchase volume, especially among first-time buyers, remote workers, and relocating households. Digital mortgage tools — instant income verification, eClosing, mobile-first pre-approvals — can give lenders a competitive edge in these growing markets.
3. Markets Where Buying Is Toughest
On the other end of the spectrum are metros where runaway home prices, high competition, and limited supply make buying extremely difficult, even for well-qualified borrowers.
Least Affordable Metros (2025)
1. San Francisco Bay Area (San Francisco, San Jose)
Still the nation’s most expensive housing market. Extreme price-to-income ratios and limited inventory make entry-level buying nearly impossible.
2. Los Angeles / Orange County
High demand, limited buildable land, and elevated prices result in some of the country’s toughest affordability conditions.
3. New York City Metro
Manhattan and parts of Brooklyn remain prohibitively expensive. Even outer boroughs and Long Island see elevated price pressures and higher taxes.
4. Seattle, Washington
Tech-driven demand keeps prices elevated, pushing many buyers toward distant suburbs.
5. Boston / Cambridge, Massachusetts
Limited housing supply combined with strong incomes in tech, biotech, and education sustain high entry costs.
What’s driving the difficulty:
Severe supply shortages
High-cost urban land
Elevated property taxes in select markets
Intense competition from high-income buyers and investors
4. Regional Patterns Shaping Buyer Behavior
Midwest & Heartland: The Affordability Leaders
This region continues to attract first-time buyers due to lower home prices, slower but steady appreciation, and balanced inventory.
Sunbelt: Mixed Conditions
While some Sunbelt metros have grown expensive (Austin, Phoenix), others remain accessible (Oklahoma City, parts of Florida’s secondary metros).
Coastal Gateway Metros: Nearly Unattainable for Entry-Level Buyers
These remain attractive for high-income earners but are largely out of reach for ordinary households without substantial savings.
5. What This Means for eMortgage Lenders
For mortgage companies operating digitally, regional affordability gaps represent a major strategic opportunity.
Key Actions to Prioritize
1. Localized, metro-specific affordability content
Help borrowers understand realistic buying options through local calculators and cost-of-ownership guides.
2. Digital pre-approvals built for first-time buyers
Fast, mobile-friendly, document-light platforms can significantly reduce friction.
3. Partnerships with agents and builders in affordable metros
These markets are seeing the strongest purchase activity — ideal for capturing growth.
4. Promote state and city down-payment assistance programs
Critical in markets where affordability is improving but savings are still a hurdle.
5. Deliver fast, compliant eClosing solutions
Especially valuable in competitive submarkets where buyers want to close quickly.
6. Final Takeaway
Affordability in 2025 depends heavily on geography. While some metros remain out of reach for the typical household, large parts of the Midwest, Heartland, and select Sunbelt metros offer a clear path to homeownership. For eMortgage lenders, focusing on these regions — with tailored digital experiences, localized education, and flexible product offerings — is the key to meeting borrowers where they are and driving sustainable growth.
