These places offer the most bang for your buck.
It’s no secret that it’s difficult to afford a home right now. According to the Federal Reserve Bank of St. Louis, the average sales price of houses sold in the United States was at an all-time high of $541,300 in the fourth quarter of 2025. That’s a whopping 47 percent increase over the same period 10 years prior. So what can prospective homeowners do? For those open to moving, one option is to look for a city with a lower cost of living.
Niche recently released its 2026 best places to live rankings, breaking down the list by demographic, cost, and diversity. It calculates the rankings based on public data, research, and reviews from real residents who live there. We looked at the best cities to buy a house that also have a low cost of living, and several cities in both Texas and Indiana made the list. Residents cite these locations’ mid-size, affordability, and community activities as the highlights they enjoy most about living there.
For everyone from young professionals to retirees, these are the top 10 actually affordable cities to buy a house in the United States in 2026.
Brownsville, Texas
Brownsville is on an international border. With real estate in Mexico being so affordable, businesses in Texas have to stay competitive, explains Myssie Cardenas Barajas, a third-generation Texas realtor with Marcus Phipps Real Estate. She says the cross-border commerce between the two countries keeps inflation stable and the global market consistent in the area.
Alongside the economic stability, Brownsville and the surrounding cities have a lot to offer residents both culturally and recreationally. “The Rio Grande Valley (RGV) specifically has an enormous amount of diversity included in it,” Cardenas Barajas says. She explains how the area has many geographic amenities that homebuyers are looking for, like beaches, rivers, ranches, big city living, agriculture, and international shopping. “We’ve got just a little bit of everything that you see in America, all condensed into these four little counties,” she says.
South Bend, Indiana
This Midwestern city has one of the highest overall grades from this list for its outdoor activities, average commute time, cost of living, and ethnic and economic diversity. This is due in large part to the proximity of Notre Dame University, as many young professionals stay locally after graduation, says Emeric Szalay, realtor and managing broker with Collins and Company Realtors in Indiana.
The other major draws include the fact that South Bend is “a medium-size city that offers a multitude of cultural events, and it’s within about an hour of destinations like Lake Michigan and Chicago,” Szalay says. One Niche reviewer adds that South Bend also has many queer-friendly spaces.
McAllen, Texas
McAllen is Cardenas Barajas’s home city, which she says is a great place to live for its safety, job opportunities, and lifestyle amenities for both young families and retirees. McAllen has highly rated public schools, and according to the City of McAllen's public safety record, the city was ranked the third safest in Texas as of 2024.
With its relaxed, slower way of living, this area is also an anchor point for what Cardenas Barajas calls “Winter Texans,” aka people who spend the colder months of the year there.
Fort Wayne, Indiana
Fort Wayne is the largest city on this list with a population topping 268,000, but it has one of the lowest median home values at just under $189,000. Niche reviewers highlight that the area is a great place to raise a family, though they say nightlife options are lacking.
Wichita Falls, Texas
This diverse area is described by Niche reviewers as a small city, meaning you get that city life feel, but without the long commutes and dense population of places like Dallas or Fort Worth. Most residents tend to own their homes, and there are plenty of parks for outdoor leisure and community building.
Evansville, Indiana
Downtown Evansville is located along the Ohio Riverfront, giving residents access to scenic views and recreational activities. The city has a growing economy with good schools, jobs, and a culture of volunteerism, residents say. However, one reviewer states that a car is likely required to get around this city efficiently, as it’s not built with walkable infrastructure.
Springfield, Illinois
An estimated 64 percent of residents here own their homes, which is the highest percentage on this list (tied with Laredo, Texas). With a population of just over 113,000, Springfield gives residents a small-town feel but with suburban city perks like bars, restaurants, and parks. Plus, the larger city of St. Louis, Missouri, is just an hour-and-a-half drive away for more activities, food options, and cultural events. Niche reviewers cite the short commutes, overall cost of living, and family-friendly atmosphere as the top reasons to live here.
Amarillo, Texas
If you haven’t noticed by now, Texas has a lot of affordable cities to live in. Amarillo is a diverse, fast-growing area that still maintains its tight-knit community vibe. Residents say it’s a family-friendly place to live with quality kids’ programs like sports and academics for people with children.
Laredo, Texas
Another border city, Laredo, also has a large international port, making it a convenient place to live for those involved in international business. And it’s no secret that most cities in Texas have great food—Laredo being no exception.
“It's rumored that once you get off the plane over here, you immediately gain 10 pounds. That's how great the tacos and enchiladas are. You smell it in the air,” Cardenas Barajas says.
Montgomery, Alabama
Montgomery is a city with one of the lowest costs of living in the U.S. overall. Residents point out the diversity, welcoming community, and plenty of affordable real estate with a median home value of $161,900, which is half the national average.
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