More Americans Can Afford To Buy a Home in These 20 ZIP Codes

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The cost of living is a major concern for many Americans, and for good reason. Many everyday goods and services are more expensive than ever before. This includes groceries, utilities, healthcare, education, transportation, entertainment and housing.

When it comes to housing in particular, mortgage rates are still high. The median sales price of a home in the U.S. was $431,000 in 2023’s third quarter. While this is a decrease from last year when the median sales price was $479,500 at its peak, it’s still too expensive for many households.

This is especially true of those who earn an average income which, according to the Bureau of Labor Statistics, was $74,580 last year (real median household income). And with the average mortgage interest rate on a 30-year fixed-rate loan hovering at 7.22%, the dream of owning a home is even more distant for many people.

There is good news, though. While homes might be too expensive in certain areas of the country, there are many ZIP codes where the purchasing real estate is more affordable than before. To find out exactly where you can more easily afford a home today, GOBankingRates compiled data from several sources, including the Zillow Home Value Index (ZHVI) and the U.S. Census’s American Community Survey.

We then assessed and organized the data to determine the top 20 ZIP codes where more Americans can afford to buy a home. Here are the results.

20. Kirkwood, Illinois (61447)

• Total households: 481
• Median household income: $92,917
• Mean household income: $117,654

The average home sales price in Kirkwood is $98,154, a 5.6% increase from last year.

19. San Antonio, Texas (78245)

• Total households: 28,417
• Median household income: $77,468
• Mean household income: $85,507

In San Antonio, the average home sales price is $257,553, a 2.2% drop from the past year.

18. Rockwood, Illinois

• Total households: 197
• Median household income: N/A
• Mean household income: $139,502

In Carbondale-Marion, which is just 27 miles from Rockwood, the average home sales price is $128,753.

17. Elyria, Ohio (44035)

• Total households: 26,894
• Median household income: $47,559
• Mean household income: $61,992

Homes in Elyria cost, on average, $158,172 — a 3.0% increase over the past year.

16. Chicago, Illinois (60619)

• Total households: 28,030
• Median household income: $43,329
• Mean household income: $58,574

The average home value in this section of Chicago — obviously not one of the more expensive parts — is $150,920, a 10.1% decrease from the previous year.

15. Taylor, Michigan (48180)

• Total households: 24,643
• Median household income: $55,358
• Mean household income: $68,815

Although home prices have risen by 5.9% in Taylor over the past year, homes are still affordable with an average sales price of $161,575.

14. Valley Bend, West Virginia (26293)

• Total households: 193
• Median household income: N/A
• Mean household income: $119,819

In the 26293 ZIP code, the typical home value is $144,779.

13. Loose Creek, Missouri (65054)

• Total households: 367
• Median household income: $77,824
• Mean household income: $273,257

Loose Creek’s average home value is far below the national average at $235,947.

12. Leesburg, New Jersey (08327)

• Total households: 192
• Median household income: $71,000
• Mean household income: $244,791

The typical home value here is $198,932. Home values in this area have risen by 14% over the past year, however.

11. St. Peters, Missouri (63376)

• Total households: 28,824
• Median household income: $87,301
• Mean household income: $103,479

Homes in St. Peters are also still affordable at an average sales price of $289,760.

10. Philadelphia, Pennsylvania (19143)

• Total households: 26,259
• Median household income: $38,928
• Mean household income: $56,248

Not only is the typical home just $216,287 in this section of Philadelphia, but prices appear to be steadily dropping.

9. Humble, Texas (77346)

• Total households: 22,385
• Median household income: N/A
• Mean household income: $122,534

In Humble, Texas, the typical home value is $254,425, a slight decrease over the past year.

8. Glenarm, Illinois (62536)

• Total households: 314
• Median household income: N/A
• Mean household income: $151,972

Home values in Glenarm hover around $268,900, a 6.2% increase from the previous year.

7. Yukon, Oklahoma (73099)

• Total households: 29,538
• Median household income: $78,629
• Mean household income: $91,302

In Yukon, the typical home value is $255,619. This is a 4.3% increase from the previous year, but it’s still far below the national average.

6. Houston, Texas (77084)

• Total households: 34,699
• Median household income: $69,857
• Mean household income: $84,990

This area of Houston, Texas has an average home sales price of $260,902.

5. Chicago, Illinois (60617)

• Total households: 30,141
• Median household income: $46,156
• Mean household income: $62,788

Another Chicago ZIP code to make the list, this area’s typical home value is $151,133.

4. Milan, Michigan (48190)

• Total households: 76
• Median household income: N/A
• Mean household income: $146,462

In the 48190 ZIP code, the typical home value is $230,666, a 3.1% decrease from the previous year.

3. Waltham, Minnesota (55982)

• Total households: 251
• Median household income: N/A
• Mean household income: $229,827

Home prices in Waltham’s 55982 ZIP code have increased slightly over the past year, but are still affordable at an average value of $251,659.

2. El Paso, Texas (79936)

• Total households: 35,736
• Median household income: $58,096
• Mean household income: $73,737

In the 79936 ZIP code, home prices have risen by 7.3% over the past year. However, they’re still on the more affordable side at an average value of $205,672.

1. Katy, Texas (77449)

• Total households: 37,043
• Median household income: $77,171
• Mean household income: $87,979

With a 3.2% drop in the past year, this Katy, Texas ZIP code is also still affordable for many. The average home sales price is $274,919.

Methodology: In order to find the ZIP codes where Americans can afford a home, GOBankingRates analyzed the Zillow Home Value Index to find the October 2023 average home values, removing the ZIP codes where the home values are above the October 2023 national average home value. Using the U.S. Census’s American Community Survey, the total households, median household income and mean household income were sourced. The total households, median household income, mean household income, and October 2023 home value index were scored, combined, and sorted to show the ZIP codes where more Americans can afford to buy a home. All data was collected on and is up to date as of Nov. 22, 2023.

Average home values in each of these locations came from Zillow.

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