Affordability emerged as a primary concern for homebuyers in 2025, leading many to prioritize value over location. With mortgage rates rising and budgets tightening, buyers shifted focus from competitive markets to securing the best housing options for their investment. According to the Realtor.com “Most for Your Money Metro 2025” report, while the national median price per square foot remained around $229 from January to November, several major metropolitan areas offered significantly more space at lower costs.
In 2025, Anthony Smith, a senior economist at Realtor.com, emphasized that the best value was not just about the lowest price but how far buyers could stretch their budgets in terms of space. The top-ranking metros combined low prices per square foot with larger home sizes, prioritizing space efficiency alongside affordability.
Texas Dominates Affordable Housing Markets
Three major Texas cities—Houston, San Antonio, and Dallas—ranked among the top five most affordable metros for homebuyers. These cities offered strong space efficiency, allowing buyers to acquire larger homes at lower costs. Smith noted that Texas markets consistently paired lower prices per square foot with larger homes. This trend is largely due to the cities’ ability to expand outward, which supports larger average home sizes compared to more mature markets that face space constraints.
For instance, Houston topped the list with a median listing price of $354,999, translating to a median price per square foot of $174 for an average home size of 2,093 square feet. This size exceeds the national median of 1,820 square feet by 273 square feet. Smith described Houston as one of the most attractive large-market options for buyers focused on maximizing space.
San Antonio also provided compelling options, featuring a median listing price of $324,900 with a price per square foot of $179 for homes averaging 1,933 square feet. Local real estate expert Daniel Cabrera highlighted the value of homes in San Antonio, where buyers typically find additional features such as flex rooms and spacious garages at reasonable prices.
Other Noteworthy Markets
The Atlanta metropolitan area presented a different value proposition, with a median listing price of $420,000 and a price per square foot of $204. Despite higher prices, larger home sizes, averaging 2,154 square feet, allowed buyers to maximize their budgets effectively. According to Bruce Ailion, an Atlanta-based real estate professional, many prospective buyers from cities like New York and Los Angeles are drawn to the larger homes and amenities Atlanta offers.
In contrast, the Dallas-Fort Worth area showcased a median listing price of $357,000 and a price per square foot of $212. The average home size here is 1,700 square feet. Smith noted that buyers in this region often seek larger homes or lots, emphasizing the Texas lifestyle.
Lastly, the Chicago metro area offered a unique value profile. While homes were generally smaller than in many Sun Belt cities, the overall lower prices and below-average price per square foot kept the market competitive. Smith remarked that Chicago’s strategy appealed to buyers prioritizing total cost rather than square footage.
As homebuyers continue to navigate the complexities of the housing market in 2025, these findings highlight the importance of value in purchasing decisions. Texas metros stand out as prime locations for those seeking more space at lower costs, reflecting a significant shift in buyer priorities in the current economic landscape.
