There are plenty of reasons to move to the South, not least of which is affordability. So many Southern cities are simply cheaper than, say, the North or along either coast.
In fact, the Missouri Economic Research and Information Center found that Southern and Midwestern states are the least expensive when it comes to overall cost of living — and that includes housing.
According to Trading Economics, the average house price in the U.S. was $492,700 in August 2024. If you were to put 20% down and finance the rest, you’d be taking out a $394,160 loan. Considering the average APR on a 30-year mortgage is 6.44%, that’s a $2,476 monthly payment — excluding things like insurance, HOA fees and taxes.
But what if you could find a home for $250,000 or less? Even if you had the same rate and term (plus 20% down), your monthly payment would be $1,256 (excluding insurance and taxes). That’s much more affordable — no matter who you are.
If you’re looking to buy property in the South, GOBankingRates revealed the five best locations where homes cost under $250,000 on average (ranked in descending order for the overall best place to live) based on a study conducted earlier this year.
5. Roanoke, Virginia
- 2022 average home value: $224,331
- Median household income: $48,476
- Unemployment rate: 2.6%
- Violent crime rate per 1,000 residents: 4.90
- Property crime rate per 1,000 residents: 38.77
Located along the Roanoke River in Southwest Virginia, Roanoke is one of the largest cities in the state. It’s located in the Blue Ridge Mountains, part of the Appalachian Mountains.
4. High Point, North Carolina
- 2022 average home value: $206,176
- Median household income: $54,331
- Unemployment rate: 3.6%
- Violent crime rate per 1,000 residents: 5.22
- Property crime rate per 1,000 residents: 27.82
Located in the Piedmont Triad region, High Point is considered the “home furniture capital of the world.” It’s also roughly an equal distance from the mountains and the ocean.
3. Pensacola, Florida
- 2022 average home value: $234,795
- Median household income: $59,119
- Unemployment rate: 2.3%
- Violent crime rate per 1,000 residents: 6.22
- Property crime rate per 1,000 residents: 27.74
For beach lovers who still want full access to the active metropolitan lifestyle, Pensacola ranks as one of the best places in Florida to live.
2. Hampton, Virginia
- 2022 average home value: $233,401
- Median household income: $59,380
- Unemployment rate: 3%
- Violent crime rate per 1,000 residents: 2.87
- Property crime rate per 1,000 residents: 24.99
Hampton boasts some truly beautiful views of the water — not to mention shoreline that goes on for miles. It’s located on the Chesapeake Bay.
1. Lynchburg, Virgina
- 2022 average home value: $216,265
- Median household income: $54,015
- Unemployment rate: 2.9%
- Violent crime rate per 1,000 residents: 4.20
- Property crime rate per 1,000 residents: 20.90
Sometimes called the “City of Seven Hills,” Lynchburg is located at the foothills of the Blue Ridge Mountains. The overall cost of living is quite affordable there compared to the national average, especially the homes.
Honorable Mentions: Texas
Texas deserves its own spot on this list as there are many cities where the average home value is under $250,000, including:
- Wichita Falls, Texas — $147,753
- Abilene, Texas — $174,950
- Amarillo, Texas — $181,193
- El Paso, Texas — $190,159
- McAllen, Texas — $195,966
- Lubbock, Texas — $195,999
- Laredo, Texas — $196,466
- Odessa, Texas — $198,665
- Longview, Texas — $200,386
- Corpus Christi, Texas — $205,269
- Pasadena, Texas — $206,139
- Killeen, Texas — $213,014
- Tyler, Texas — $222,562
- Bryan, Texas — $239,999
Methodology: In order to find the 50 best places to buy a home for under $250,000, GOBankingRates looked at the 100 most populous cities where home values from January 2022 to January 2023 did not go above $250,000, and had an average during that same period below $250,000, according to Zillow’s January 2023 data. Once these 100 cities were identified, GOBankingRates looked at the following factors: median household income as sourced from the United States Census Bureau’s 2021 American Community Survey, an overall livability score out of 100 sourced from AreaVibe, violent crime rate per 1,000 residents and property crime rate per 1,000residents — both sourced from Neighborhood Scout, Metropolitan Statistical Area unemployment rate from the Bureau of Labor Statistics preliminary data for December 2022, percent of the population living below the poverty line sourced from the United States Census Bureau’s 2021 American Community Survey, and an annual cost of living expenditures estimate (groceries, healthcare, utilities, and transportation) based on the Bureau of Labor Statistics 2021 Consumer Expenditure Survey and local cost of living indices sourced from Sperling’s Best Places. All factors were then scored and combined, with the lower score being best, and then ranked to give the final placements. All data was collected on and up to date as of Jun. 3, 2024.