Affordability in the Housing Market
Affordability became a key concern in 2025. With rising mortgage interest rates and tighter budgets, many buyers have shifted their focus from competing in the market’s hottest areas to achieving the greatest possible value for their real estate budget. Although the national average price per square foot was around $229 from January to November, several large metropolitan areas offered significantly more space for less money.
Most Affordable Metros
Taking into account both average price per square foot and typical home size, these markets emerged as some of the most affordable options among major U.S. metros in 2025. "In 2025, ‘Most for Your Money’ wasn’t just about getting the lowest sticker price," says Anthony Smith, senior economist at Realtor.com. “It reflected how far a buyer’s budget could stretch in terms of space.”
Prioritizing Space Efficiency
The highest-rated metros combined the lowest prices per square foot with larger typical home sizes—“prioritizing space efficiency, not just overall price,” Smith notes. Three main subjects, Texas metropolises, were among the five metropolises with the highest price-performance ratio in 2025. Houston, San Antonio, and Dallas all delivered strong space efficiency.
Texas Metropolitan Areas
“Texas metropolitan areas stood out because they consistently matched lower prices per square foot with larger homes,” says Smith. “These markets are able to provide more space at a lower cost per unit through outward expansion, supporting larger typical home sizes than many mature, space-constrained metropolitan areas that rely on demolitions or high-rise construction.”
Top 5 Metros with the Best Price-Performance Ratio
1. Houston–Pasadena–The Woodlands, TX
- Median list price per square foot in 2025: $174
- Median List Price: $354,999
- Average home size: 2,093 square feet
Houston’s average living space was 273 square feet above the national average of 1,820. “For buyers focused on maximizing space, Houston remained one of the most enticing large market options in the country,” says Smith.
2. San Antonio–New Braunfels, TX
- Median list price per square foot in 2025: $179
- Median List Price: $324,900
- Average home size: 1,933 square feet
“Price points under $200 per square foot and above-average home sizes bring larger homes at reasonable prices,” says Daniel Cabrera, Owner and founder of Sell my house fast SA TX. “In San Antonio, it’s typical to have a flex space, game room or home office, three-car garages and deep, covered patios.”
3. Atlanta–Sandy Springs–Roswell, GA
- Median list price per square foot in 2025: $196
- Median List Price: $410,000
- Average home size: 2,164 square feet
“The Atlanta metro primarily delivered value through larger typical home sizes, which helped offset higher median listing prices and allowed buyers to stretch their budget across acreage rather than just price alone,” Smith says.
4. Dallas–Fort Worth–Arlington, TX
- Median list price per square foot in 2025: $204
- Median List Price: $420,000
- Average home size: 2,154 square feet
People often say, “Everything is bigger in Texas,” and housing is no exception. In fact, according to Smith, Dallas-Fort Worth has one of the largest typical apartment sizes among major metropolitan areas.
5. Chicago–Naperville–Elgin, IL-IN
- Median list price per square foot in 2025: $212
- Median List Price: $357,000
- Average house size: 1,700 square feet
“The Chicago metro offered a different value profile,” Smith says. “Although the homes were smaller than in many Sun Belt metropolitan areas, lower overall prices and a below-average price per square foot kept the market competitive for buyers who prioritized total cost over pure square footage.”
