When it comes to affordable housing, the usual suspects — coastal cities and sunbelt hotspots — aren’t the ones making headlines this spring. Instead, a humble Midwestern city has stolen the spotlight, giving homebuyers a rare chance to snag a house for $200,000 less than the national median.
Toledo, Ohio, a lakeside city of 265,000 people, just claimed the No. 1 spot in the latest Wall Street Journal/Realtor.com® Housing Market Ranking. It’s not hard to see why. Thanks to strong demand, fast-moving sales and prices that feel like a throwback to pre-pandemic days, Toledo is proving that big opportunities don’t always come with a big price tag.
Why Toledo?
In March, the typical Toledo home cost $235,000, a jaw-dropping discount compared with the U.S. median of about $425,000. Even with prices up 17.5% from last year, buyers are still getting way more bang for their buck here than in most of the country.
Homes aren’t just cheap: they’re selling fast, too. The average Toledo property spent just 37 days on the market in March, more than two weeks quicker than the national average. That kind of speed suggests a market where buyers have to act fast or risk missing out.
Who’s buying? Turns out, Toledo isn’t a local secret anymore. Nearly two-thirds of online listing views came from out-of-towners including house hunters from pricey coastal hubs like New York City and Washington, D.C.
Big Returns for Sellers, Too
Toledo has been a goldmine for sellers. A new report from ATTOM Data Solutions found home sale profit margins surged more here than anywhere else in the country early this year. The median sale price in Toledo was 44.7% higher than what sellers originally paid, up from 27.8% in early 2024.
That kind of jump means sellers are walking away with thousands more in their pockets than they might have just a year ago.
A Hidden Perk
True, affordability is Toledo’s biggest draw, but another factor is quietly winning over buyers: lower climate risks. Only 1.5% of Toledo properties are vulnerable to severe or extreme threats from disasters like floods, wildfires or extreme heat over the next 30 years, far below the risks in coastal metros. Across the top 20 markets in the ranking, just 4.7% of homes are at high risk, making the Midwest and Northeast increasingly attractive for buyers wary of climate-related headaches.
Of course, no city is without its troubles. Toledo’s unemployment rate hit 6.6% in March, the highest among the top 20 markets, boosted by slowdowns in manufacturing and professional services. Yet even with those economic headwinds, its low cost of living and cheap housing keep it competitive.
“Affordability is a huge advantage,” says Realtor.com Chief Economist Danielle Hale. “Even with higher unemployment, the savings on housing can make up for it.”
Midwest Dominates the Rankings
Toledo isn’t the only heartland city turning heads. The entire top 20 in the latest rankings is split between the Midwest and Northeast, with Ohio alone claiming five spots.
Following Toledo:
- Manchester, NH (No. 2)
- Rockford, IL (No. 3)
- Springfield, MA (No. 4)
- Canton, OH (No. 5)
Some of those markets are, besides being affordable, also job friendly. Appleton, WI (3.1% unemployment), Green Bay, WI (3.3%) and Milwaukee (3.8%) all boast stronger labor markets than the national average (4.2%).
And for buyers on a tight budget, Youngstown, OH, takes the crown for the cheapest homes, with a median price of just $185,000, $240,000 below the national figure.
Biggest Climbers (and Fallers)
Toledo’s ascent to the top coincided with big changes in other markets.
- New Haven, CT, soared 34 spots to No. 11, offering relative affordability near NYC.
- Youngstown, OH, jumped 16 spots to No. 18.
- Trenton, NJ, took the hardest hit, plummeting 12 spots out of the top 20 after a strong winter.
If you’re looking for a home that won’t break the bank, the Midwest is where it’s at. Toledo, with its low prices, fast sales and climate resilience, is leading the charge, but plenty of other heartland cities are close behind.
This might be the perfect time to head inland for buyers priced out of coastal markets: because in today’s housing market, $200,000 in savings is a nice bonus.
