The Most Affordable Place To Buy A Home In The US Is This Midwest City

Are you dreaming about buying a home without emptying your bank account? It's time to pack your bags and head for Detroit, Michigan. According to the Zillow Home Value Index, a collection of data that captures the values of homes across the country, the typical home value in Detroit is $78,601 as of June 2025. Compared to the national median home price, which has just hit a record high of $435,300, the Midwest city offers affordable housing that's hard to beat.

Lower prices mean budget-conscious buyers can get more bang for their buck in the Motor City, even as interest rates remain elevated. Whether you want to spend under $100,000 for a fixer upper or you dream of living in a practically palatial home for under $1,000,000, Detroit has a lot to offer. The houses tend to skew older, and you'll find a lot of sturdy brick, large lots, and historic details that cost way more in other markets.

You'll want to do careful research before settling on a neighborhood to make sure it offers the lifestyle you want. It's also important to consider Detroit's property taxes and the investments you may need to make for improvements, upkeep, and personal safety. But revitalization projects in the city's downtown areas have increased the number of businesses and cultural opportunities. And although the job market in Detroit is especially challenging, if you're a remote worker looking for somewhere to settle in the Midwest where the cost of living is low and the amenities are growing, it should be on your radar.

If you've got your heart set on living in the Midwest, you may also want to consider cities like Cleveland, Ohio, or Peoria, Illinois, which also have typical home values that are well below the national average. But Detroit's affordability isn't just about low home prices; it's also thanks to broad financial support programs available to buyers. The Michigan State Housing Development provides up to $25,000 to eligible buyers for down payments, closing costs, and prepaid escrows through its First-Generation Down Payment Assistance Program. The City of Detroit offers a similar program providing grants in the same amount for qualifying residents, in an effort to rebuild homeownership across the city. 

Detroit's diverse neighborhoods make it a great option for first-time buyers, families, and retirees alike. Hazel Park combines affordability with plenty of restaurants, coffee shops, and a vivid nightlife scene that appeals to young professionals. Grosse Pointe Park is full of families thanks to its great schools. Bagley has plenty of parks and is less congested, making it ideal if you want to enjoy peace and quiet during your retirement.

Whether you're evaluating the cheapest places to buy a house in America because you're ready to rehab your dream home, or you're interested in investing, Detroit has housing options that will fit your needs. You'll have to do your due diligence, especially if you're planning on becoming a landlord or purchasing a teardown property. But increasing demand for housing and ongoing development projects make Detroit an extremely strategic choice for long-term investments.