With high prices and elevated interest rates, many potential homebuyers are finding themselves priced out of the market in larger cities. The good news is that there are still plenty of options for those willing to look beyond the major urban centers.

Many of these less expensive markets are situated in the Midwest and have remained affordable even during the COVID-19 pandemic. Unlike larger cities, they didn't experience the same kind of price growth, making them an attractive option for those seeking more affordable housing options.

This spring, the Lafayette, IN metropolitan area topped the Wall Street Journal/Realtor.com Emerging Housing Markets index. The quarterly index identifies housing markets that “offer shoppers a lower cost of living, including for homes, and thriving local economies that are attractive, but not too crowded.”

Here are the top 20 emerging markets for spring 2023:

1. Lafayette, IN ($289,000 median home list price)




2. Bloomington, IL ($339,000)




3. Elkhart, IN ($275,000)




4. Lebanon, PA ($372,000)




5. Fort Wayne, IN ($339,000)




6. Topeka, KS ($249,000)




7. Sioux City, IA ($305,000)




8. Omaha, NE ($345,000)




9. Springfield, IL ($144,000)




10. Manchester, NH ($550,000)




11. Janesville, WI ($331,000)




12. Columbus, OH ($375,000)




13. La Crosse, WI ($334,000)




14. Johnson City, TN ($413,00)




15. Springfield, OH ($172,000)




16. Hickory, NC ($349,000)




17. Burlington, NC ($368,000)




18. Columbia, MO ($367,000)




19. Waterloo, IA ($263,000)




20. Knoxville, TN ($470,000)

To view report in full, click here.