Housing

How to buy a house for $125,000: US cities with affordable homes in 2025

Americans are finding it increasingly difficult to get on the housing ladder but there are some places where your money will go a lot further.

How to buy a house for $125,000
MIKE BLAKE
Maite Knorr-Evans
Maite Knorr-Evanstwitter
Maite joined the AS USA in 2021, bringing her experience as a research analyst investigating illegal logging to the team. Maite’s interest in politics propelled her to pursue a degree in international relations and a master's in political philosophy. At AS USA, Maite combines her knowledge of political economy and personal finance to empower readers by providing answers to their most pressing questions.
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In recent year house prices have become a major concern for families in the United States, with people increasingly unable to move away from rental housing. If you’re looking to buy a home for under $125,000, you’ll find that living in a city is nearly impossible.

However, there are some notable exceptions; places where you could find a home for a bargain price. If you are happy to live in a town, there are currently twelve locations in the US where you can still find a house for less than $125,000.

Median house prices in US towns

  • Selma, AL: $85,917.00
  • Kennett, MO: $94,783.00
  • Sikeston, MO: $112,300.00
  • New Castle, PA: $116,617.00
  • Galesburg, IL: $117,800.00
  • Greenville, MS: $119,000.00
  • Macomb, IL: $119,417.00
  • Zapata, TX: $121,167.00
  • Danville, IL: $122,417.00
  • Bennettsville, SC: $122,783.00
  • Fort Madison, IA: $123,000.00
  • Johnstown, PA: $123,233.00

Source: Zillow 

Cities with properties under $125,000

For many households a one-bedroom property may not be suitable. But if you are in the market for a one-bedroom apartment there are dozens of cities where prices are under $125,000:

Cities with one-bedroom properties for less than $125,000

  1. Peoria, IL: $43,580.63
  2. Shreveport, LA: $50,859.65
  3. Columbus, GA: $52,775.02
  4. Wichita Falls, TX: $55,838.88
  5. Toledo, OH: $56,245.37
  6. Topeka, KS: $61,003.70
  7. Augusta, GA: $66,392.66
  8. Evansville, IN: $67,177.36
  9. Jackson, MS: $67,247.78
  10.  Rockford, IL: $74,783.26
  11. Lansing, MI: $76,086.91
  12. Akron, OH: $77,262.87
  13. Cedar Rapids, IA: $79,940.58
  14. Wichita, KS: $80,724.11
  15. McAllen, TX: $83,380.31
  16. Lubbock, TX: $85,976.48
  17. Davenport, IA: $88,050.08
  18. Clinton Township, MI: $90,391.98
  19. Oklahoma City, OK: $90,591.76
  20. Killeen, TX: $90,702.28
  21. Grand Prairie, TX: $91,122.98
  22. Independence, MO: $91,200.06
  23. Lafayette, LA: $94,471.71
  24. Zanesville, OH: $94,783.25
  25. Waco, TX: $94,955.13
  26. Bonne Terre, MO: $95,070.07
  27. University City, MO: $95,122.67
  28. South Bend, IN: $95,179.46
  29. Baton Rouge, LA: $97,908.87
  30. Cleveland, OH: $98,869.11
  31. Hartford, CT: $99,126.53
  32. Edinburg, TX: $100,946.55
  33. Norman, OK: $101,815.20
  34. Kansas City, KS: $103,363.38
  35. Sterling Heights, MI: $103,603.56
  36. Mobile, AL: $103,987.91
  37. Pasadena, TX: $104,314.20
  38. Waterbury, CT: $110,412.51
  39. Memphis, TN: $113,520.85
  40. San Antonio, TX: $115,516.58
  41. Tallahassee, FL: $116,711.53
  42. Fayetteville, NC: $116,753.89
  43. Metairie, LA: $117,337.91
  44. Hampton, VA: $117,613.60
  45. Indianapolis, IN: $118,328.39
  46. Louisville, KY: $119,135.33
  47. Syracuse, NY: $120,381.75
  48. Garland, TX: $120,523.34
  49. Saint Louis, MO: $121,905.65
  50. Gainesville, FL: $122,090.92
  51. Houston, TX: $122,200.34
  52. Miami Gardens, FL: $122,325.09
  53. Winston-Salem, NC: $122,577.20
  54. Joliet, IL: $124,195.98

Source: Zillow

These cities also show promise of offering more affordable listings. If you’re searching for a two- or three-bedroom home, the median listing prices for homes of that size will likely include many of the cities listed above but exclude those where the price for a one-bedroom is close to $125,000.

In Toledo, Ohio, for example, there are more than 230 properties for sale under $125,000, and many feature more than one bedroom. Additionally, Zillow estimated that the average price of a two-bedroom in Wichita, Kansas, was around $119,000 in December 2024, and there are currently 100 properties on the market listed under $125,000.

If you’re interested in living in one of these cities, this list may serve as a guide to markets with more affordable options. While the overall market prices have pushed the median above $125,000, there are still choices available. Although you should be aware that some homes may require repairs, which should be factored into the overall budget.

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