Midwest Remained Top Choice for Affordable Housing in 2025
The region maintained lower living costs in 2025 as domestic migration patterns favored its housing supply.
Updated on Oct. 6, 2026 in Residential
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The Midwest stood out as the most affordable region in the United States throughout 2025. This trend helped the area record positive net domestic migration during a year when all states in the region gained population.
Why it matters
Housing affordability remains a primary driver for households moving to the Midwest, where housing stock has historically kept pace with demand better than in other regions. This balance supports household budgets by keeping relative costs lower than national averages.
Residents in Le Mars, Iowa, the most affordable market, spent an average of 17 percent of their income on housing in 2024 against a median household income of $83,000. Meanwhile, cities like Appleton, Wisconsin, face shifting dynamics with a housing shortage now at 6 percent.
The players
Le Mars, Iowa
A city that served as the nation's most affordable housing market in 2024.
Appleton, Wisconsin
A market that shifted from a housing surplus in 2012 to a shortage of nearly 6 percent by 2023.
Jefferson City, Missouri
A market that moved from a surplus in 2019 to a current housing shortage of nearly 3 percent.
The details
Affordability in the Midwest persists because the supply of habitable housing often exceeds demand, though this is changing in specific markets. Local development is sometimes hindered by restrictive land-use rules, which can transform previous housing surpluses into shortages, as seen in Jefferson City, Missouri. Maintaining current affordability levels will likely depend on whether housing production can continue to match rising demand from new residents.
Timeline
2012: Appleton, Wisconsin, held a housing surplus.
2019: Jefferson City, Missouri, held a housing surplus.
July 2024 - July 2025: All Midwestern states gained population.
2024: Le Mars, Iowa, was ranked as the most affordable housing market.
2025: The Midwest recorded positive net domestic migration.
Money Landscape
Midwestern housing affordability reflects a long-standing regional advantage compared to high-cost markets elsewhere. This regional dynamic remains critical as developers and policymakers navigate the broader national shortage of affordable inventory.
Households considering a move should monitor how local housing inventory shifts affect monthly costs, as even affordable areas may see price pressure if supply growth lags behind population gains. Always consult with a professional to evaluate how regional cost-of-living differences impact your long-term savings and budget.
The takeaway
The Midwest continues to offer significant housing value, yet residents should keep a close eye on local housing supply shortages that could affect future affordability. Check your current city’s housing supply data or discuss regional moving costs with a financial professional to plan your budget.
Further reading
For more on market trends, visit our Residential section.
Source note: This article includes information reported by 301 Moved Permanently.
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