2025 U.S. Real Estate Predictions: A Buyer’s Market?

Zillow predicted a more active market with additional inventory for 2025, giving buyers more room to negotiate. However, homebuyers should expect some turbulence with fluctuating mortgage rates, even as more homes become available. Alana Mann, President of The Statesman Group of Companies, joined LiveNOW from FOX to discuss.

Homebuyers aiming to get houses that won’t break their bank may find some states are home to less-expensive properties than others. A recently-released analysis from Redfin found Iowa stood at as the state offering the most affordable homes, based on the median price that properties have gone for in March.

The four other states that appeared among the top-five for home affordability were located in the Midwest, Mid-Atlantic and South-Central regions of the U.S. All five have seen sale prices significantly lower than the $428,000 national median, according to the real estate company.

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Redfin said the top-five states with the most affordable homes included:

Iowa: The Most Affordable State

FILE – Signage near the Iowa State Capitol ahead of the Iowa caucus in Des Moines on Jan. 10, 2024. (Alex Wroblewski/Bloomberg via Getty Images / Getty Images)

Homes in the Hawkeye State are being bought for a median of $227,500, helping it earn its No. 1 spot on Redfin’s ranking. More than 3.2 million people call the state home, according to an estimate by the U.S. Census Bureau.

Ohio: The Second-Most Affordable State

FILE – Aerial view of the Suspension Bridge and James Roebling Bridge crossing Ohio River from Covington, Kentucky, to Cincinnati, Ohio. (Photo by: Joe Sohm/Visions of America/Universal Images Group via Getty Images)

Ohio is the second-most affordable state when it comes to getting a home, with Canton, Youngstown and many other Ohio locales seeing affordable prices, per Redfin. The real estate company pegged the state’s median sale price at $231,400 and its median monthly housing payment at $1,472.

Oklahoma: The Third-Most Affordable State

FILE – Oklahoma City skyline. (Visions of America/Universal Images Group via Getty Images / Getty Images)

Redfin said Oklahoma ranked No. 3, with homes there selling for a median $236,700.

West Virginia: The Fourth-Most Affordable State

The Mountain State boasts a median sale price of $243,100, according to the analysis. It derives its nickname from the well-known Appalachian Mountains that run through it.

Michigan: The Fifth-Most Affordable State

FILE – Skyline of Detroit. Soft light on an overcast day over the river. (Photo by Roberto Machado Noa/LightRocket via Getty Images)

Households in Michigan earn a median of $71,149, Redfin reported, citing the U.S. Census Bureau. Its No. 5 spot for buying a home is thanks to its $248,000 median sale price.

Other Affordable States

Mississippi, Missouri, Louisiana, Indiana and Arkansas were the five other states that Redfin ranked among the 10 cheapest when it came to homes.

The Priciest State

Meanwhile, with homes going for a median of $785,200, California earned 50th place on the ranking, meaning it was the priciest state, the analysis found.

Conclusion

The 2025 US real estate market is expected to be more active, with additional inventory and fluctuating mortgage rates. Homebuyers can find affordable properties in states like Iowa, Ohio, Oklahoma, West Virginia, and Michigan. However, it’s essential to be prepared for turbulence in the market and to research thoroughly before making a purchase.

Frequently Asked Questions

Q: What is the most affordable state for buying a home in 2025?

A: According to Redfin, Iowa is the most affordable state for buying a home in 2025, with a median sale price of $227,500.

Q: What are the top 5 most affordable states for buying a home in 2025?

A: The top 5 most affordable states for buying a home in 2025 are Iowa, Ohio, Oklahoma, West Virginia, and Michigan.

Q: What is the median sale price of a home in California?

A: The median sale price of a home in California is $785,200, making it the priciest state in the US.

Q: What should homebuyers expect in the 2025 US real estate market?

A: Homebuyers should expect a more active market with additional inventory and fluctuating mortgage rates, which may cause turbulence in the market.