These fast-growing housing markets are still affordable, even as prices rise
The housing market is showing signs of slowing, yet 73% of metro areas still saw positive price increases in the final quarter of 2025.
On an annual basis, prices rose the fastest in southern Missouri’s Cape Girardeau (19.9%), where the median home price is $275,000, according to new data from the National Association of Realtors®.
This was followed by Cumberland, MD (17.1%), where the median home price is $174,900, and then by Owensboro, KY (15%), where the median price is $264,000.
In the final quarter of 2025, the national median price rose 1.2% to $414,900, while monthly mortgage payments for a single-family home fell 5.7% to $2,057, NAR data show.
These areas fall well below the national median, making them more affordable for the average home buyer.
“To meet the 30% threshold to afford a typical home in the three markets requires an annual household income of $53,320 (Cape Girardeau MO-IL), $33,920 (Cumberland, MD-WV) and $51,360 (Owensboro, KY),” says Jiayi XuRealtor.com Economist.
The calculation is based on a 20% down payment for a starter at an average 30-year mortgage interest rate of 6.1%, excluding taxes and insurance.
Prices fell the most in Elmira, NY (-7.2%), Farmington, NM (-7%), and Boulder, CO (-6.7%).
House price growth has stalled in many areas and inflation is falling. That gives buyers an edge, but they still need to come to the market prepared.
“Knowing mortgage rates and qualifying income requirements for down payments will help potential homeowners determine which metropolitan areas are affordable for them,” Michael Hyman writes for NAR.
Price pressure: gradual, not sudden
Xu says some locked-out buyers may be returning to the market. But homeowners’ equity remains high, keeping prices stable. Many parts of the country have seen it too income growth faster than the increase in house prices.
“With inventories still relatively tight, these factors have combined to contribute to continued price resilience across much of the market, despite slower overall sales activity,” says Xu.
Will aspiring homebuyers see any relief in price growth? It might be starting to look like that. But Xu said he expects affordability gains to come slowly.
“Slightly lower mortgage rates and modest improvements in affordability have brought some locked-out buyers back into the market,” says Xu.
“Meaningful longer-term relief for first-time buyers is likely tied to increasing housing supply, especially in the starter home segments.
“With inventories remaining tight in many markets, upward pressure on prices is expected to continue even as interest rates fall.”
