Where to Buy a House Under $100K: A 2023 Guide to America's Most Affordable Markets

In 2023, the question of whether you can still purchase a home for less than $100,000 became increasingly relevant for budget-conscious buyers. According to the National Association of Realtors (NAR), the median home price had climbed to $371,200 in the first quarter of that year. Data from the Census Bureau and the Department of Housing and Urban Development painted an even grimmer picture, showing median prices around $437,000. Understanding where you might still find affordable housing requires looking beyond mainstream markets and exploring regions where $100K can still work.

The Budget Reality: Why Finding Homes Under $100K Matters

The last time median home prices in the United States fell below the $100,000 threshold was back in the first quarter of 1987—nearly four decades prior. This historical context underscores how challenging the search has become. Yet despite the overall market trends, certain geographic pockets still offer realistic opportunities for homebuyers willing to explore less conventional destinations.

The unfortunate reality is that most homes in this price range require careful evaluation. Distressed properties exist in nearly every market, but finding a genuinely decent home in a respectable neighborhood for under $100,000 demands strategic research and local expertise. The good news: viable options do exist.

Where the Opportunities Lie: Geographic Hotspots

When searching for where you might still purchase a house for under $100K, Illinois emerges as the standout region. In 2023, seven of the nation’s twenty metropolitan areas with the lowest median home prices were located within this state. Cities like Decatur, Peoria, Rock Island, Springfield, Rockford, Champaign-Urbana, and Kankakee consistently offered the most realistic chances of finding homes in this price range. Just across the border, Davenport, Iowa presents another option.

Beyond the Midwest, alternatives exist in New York, Pennsylvania, and Ohio—though typically with fewer choices and more competitive conditions. These eastern markets generally see less inventory in the sub-$100K range compared to Illinois communities.

Akron, Ohio: The Largest Market for Budget Buyers

For those seeking a bigger city with more selection, Akron represents the most substantial option. With a population near 189,000, this city offered 774 homes in the $40,000-to-$100,000 range during a six-month period in 2023. According to NAR data from that time, the median home price stood at $173,000, making it accessible to many buyers.

The typical Akron home in this price bracket ranged from cosmetically outdated to fully renovated. Bungalows and Colonial-style properties dominated the landscape, with most offering at least 1,000 square feet of living space. Finding multiple bathrooms within budget proved challenging, though quiet streets and well-maintained neighborhoods existed throughout various sections of the city.

Akron’s appeal extends beyond affordability: a 25-mile hiking and biking trail, the Ohio Ballet, a minor-league baseball team, two universities, and significant employment in the polymer industry provide lifestyle and economic stability. Crime rates depend heavily on neighborhood selection, making local research essential.

Eastern Options: Binghamton, Erie, and Strategic Considerations

Binghamton, New York offers a more selective market. Only 62 homes in the target range sold over a six-month stretch in 2023, but those available often featured charming older architecture in attractive neighborhoods. The median price registered at $142,000 that year. Homes typically showcased hardwood floors, basements, decks, or recently updated electrical systems. The trade-offs: limited bathroom configurations, potential interior updates needed, and low ceilings in some structures. Winter conditions prove challenging, with approximately 200 overcast days annually and significant snowfall.

Located just three hours from New York City and Philadelphia, Binghamton also hosts Binghamton University, one of the nation’s top-ranked public institutions. However, violent and property crime rates exceed national averages, and winters test the resolve of newcomers accustomed to milder climates.

Erie, Pennsylvania presented different opportunities. With 178 homes changing hands in the $40,000-to-$100,000 price range during the same six-month window, buyers found more selection than Binghamton. The median price reached $155,000. At the higher end, two-story brick homes with 1,500 square feet, four bedrooms, and two bathrooms appeared regularly. Lower-priced options typically featured smaller, older structures with single bathrooms, limited lots, and street parking only.

Situated on Lake Erie’s shoreline, Erie offers sandy beaches, 45 public parks, and cultural amenities including the Erie Philharmonic Symphony. The Palmer District houses several breweries and distilleries. However, residents contend with approximately 100 inches of annual snowfall, and crime rates, while lower than some counterparts, remain above national mediums.

The Illinois Advantage: Decatur and Springfield

Decatur, Illinois held the distinction of being the nation’s most affordable major metropolitan area in early 2023, with a median price of $110,000. In a six-month period, one-third of the 221 homes sold below $100K boasted at least 1,250 square feet. Many properties featured additional basement space, though most contained just one bathroom. School ratings proved inconsistent across districts.

The city’s 70,000 residents benefit from well-maintained residential streets, as evidenced by Google Street View and Zillow listings. Many homes displayed stunning original woodwork and partial renovations. Crime rates exceeded national averages for both violent and property offenses, presenting a significant consideration. Yet the social calendar thrives: farmers markets, music festivals, pro tennis tournaments, hiking, canoeing, and cultural events keep residents engaged. Chicago, St. Louis, and Indianapolis all lie within three hours’ driving distance.

Springfield, Illinois, the state capital, occupied the seventh position among least-expensive metropolitan markets in 2023, with a median price of $148,000. Yet an abundance of homes sold below $100K: 278 properties changed hands in the $40,000-to-$100,000 range during the six-month assessment period. The typical property featured two bedrooms, one bathroom, horizontal siding, and a modest front porch, though brick structures and occasional two-story craftsman homes provided architectural variety.

Springfield’s 113,000 residents celebrate the historic Lincoln legacy—President Lincoln’s home and presidential library anchor the cultural identity. But residents also enjoy 2,500 acres of parks, the iconic Route 66 drive-in theater, live performances, vineyards, breweries, Prospect League baseball, and countless farmers markets. Like Decatur, crime rates exceed national figures, and neighborhoods vary significantly in character and safety. Located just 40 miles west of Decatur, Springfield provides comparable proximity to larger metropolitan areas.

Strategic Approaches to Finding Your $100K Home

The homes most likely to remain listed on any given day are those languishing on the market for months—the ones with challenges that initial buyers overlooked. To understand what a market truly offers, examine sold listings from the past six months to a year rather than current inventory. This approach reveals realistic expectations for size, condition, age, style, and inherent limitations.

Common Problems to Anticipate

When browsing dozens of listings in the sub-$100,000 category, certain recurring issues emerged:

• Water damage and roof leaks
• Undesirable locations (gas stations, major intersections, cemeteries nearby)
• Neighborhood crime concerns
• Shoddy or unprofessional renovations suggesting deeper structural issues
• Abandoned renovation projects indicating previous owner difficulties
• Multiple vacant properties scattered throughout neighborhoods
• Below-average school ratings and limited educational options

The Importance of Local Expertise

Moving quickly and strategically separates successful buyers from those who miss opportunities. Working with a knowledgeable local real estate agent provides access to off-market listings—properties that may sell before ever appearing on major websites. If you wait for a home to post online, it might already be under contract.

An experienced agent helps navigate neighborhood dynamics, identifies emerging opportunities, and guides you through the negotiation process. They understand which school districts may improve, which neighborhoods stabilize, and which properties offer genuine potential despite cosmetic shortcomings.

Financing Your Affordable Home Purchase

First-time homebuyer programs can significantly enhance affordability. Many lenders offer conventional loans requiring just 3% down payments, while FHA loans accept 3.5% down. State housing finance agencies frequently provide grants, low-interest loans, no-interest options, or forgivable loans to assist with down payments and closing costs.

For those interested in purchasing a fixer-upper, the FHA 203(k) home renovation loan combines purchase financing with rehabilitation funds—allowing you to buy a property below market value and upgrade systematically.

Essential Preparation Steps Before Purchasing

Establish Your True Budget. Calculate your annual income and subtract regular expenses, retirement contributions, and savings goals. The remainder represents what you can allocate to principal, interest, property taxes, insurance, maintenance, and utilities. Remember to account for homeowners association dues, private mortgage insurance if applicable, and specialized coverage for earthquakes, floods, or hurricanes depending on location.

Research Current Mortgage Rates. Interest rates fluctuate frequently, and advertised rates typically apply only to exceptionally qualified borrowers with substantial down payments, excellent credit scores, and low debt-to-income ratios. Getting a general sense of prevailing rates helps calibrate your expectations.

Use Mortgage Calculators. Online calculators demonstrate how different purchase prices, interest rates, and down payment percentages affect monthly payments. This tool clarifies what you might realistically afford.

Pursue Preapproval. While some lenders offer quick online estimates, formal preapproval involves thorough financial document review. Some lenders even provide pre-underwriting—the most comprehensive option, confirming your ability to obtain financing before you identify a specific property. Preapprovals from multiple lenders allow you to compare competitive offers.

Note: some lenders hesitate to offer small-dollar mortgages, but thousands of mortgage providers across the country specialize in this category.

Move Decisively Once Ready. When your agent identifies an imminent or newly listed property matching your criteria, schedule a tour immediately. Submit strong offers quickly when you identify the right opportunity. However, if you lack time pressure, resist the urge to decide hastily—selling and moving carries substantial costs and disruption.

Final Perspective

Finding where you can purchase a house for under $100K in 2023 and beyond requires patience, strategic research, and local knowledge. While the market has transformed dramatically since 1987, opportunity zones remain for those willing to explore emerging affordable regions and think creatively about location and renovation potential. Illinois continues leading the nation in below-$100K inventory, but Akron, Binghamton, and Erie also present legitimate possibilities for budget-conscious homebuyers ready to act decisively.