Affordability emerged as a critical issue for homebuyers in 2025, prompting a shift in focus from high-demand markets to areas that offered greater value for money. Rising mortgage rates and tighter budgets pushed many buyers to seek out locations where their housing dollar could stretch further. 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 through November, several metro areas provided significantly more living space for lower costs.
In the report, Anthony Smith, senior economist at Realtor.com, noted that the top-ranking markets in 2025 demonstrated a balance between affordable prices per square foot and larger average home sizes. He explained, “In 2025, the ‘Most for Your Money’ metro wasn’t about chasing the lowest sticker price alone. It reflected how far a buyer’s budget could stretch in terms of space.” This emphasis on space efficiency over mere price was a key factor for buyers.
Texas Markets Lead the Way
Three major metro areas in Texas ranked among the top five markets providing the most value for homebuyers. Houston, San Antonio, and Dallas all stood out for their ability to combine low prices per square foot with larger homes. “Texas metros stood out because they consistently paired lower prices per square foot with larger homes,” Smith remarked. These areas have room to expand outward, allowing for larger home sizes compared to more established markets that often rely on teardowns or vertical building.
For instance, the median listing price per square foot in Houston was $174, with a median listing price of $354,999 for a typical home size of 2,093 square feet. This was notably 273 square feet larger than the national median. Smith calls Houston “one of the most compelling large-market options in the country” for buyers prioritizing space.
In San Antonio, the median listing price per square foot was $179, with homes typically listed at $324,900 and averaging 1,933 square feet. Local real estate expert Daniel Cabrera highlighted the advantages of these price points, noting that buyers often find features like flex rooms and spacious garages, enhancing the overall value of their purchases.
Other Notable Markets
The Atlanta metro area also offered significant value, primarily through larger home sizes. The median listing price per square foot in Atlanta reached $196, with a median price of $410,000 for an average home size of 2,164 square feet. Smith pointed out that these larger sizes can attract buyers relocating from states with smaller homes, a sentiment echoed by real estate attorney Bruce Ailion, who noted the appeal of Atlanta’s amenities and spacious homes.
In contrast, the Chicago metro area presented a different value proposition. Although homes were generally smaller than in many Sun Belt metros, the overall lower prices kept the market competitive. The median listing price per square foot in Chicago was $212, with homes averaging 1,700 square feet and a median price of $357,000.
As affordability remains a pressing concern for homebuyers, the dynamics of the housing market in 2025 reflect a broader trend of prioritizing space and value over sheer price. With Texas cities leading the charge and other metros adapting to the changing landscape, buyers are finding innovative ways to make their purchasing decisions work in their favor.
