Midwest Remained Most Affordable Housing Region in 2025
As population growth rises, check your local housing supply to see if affordability remains stable in your community.
Updated on Oct. 6, 2026 in Residential
Live Poll
Is housing in your community becoming more or less affordable for you?
The Midwest emerged as the most affordable housing region in the United States throughout 2025, recording positive net domestic migration. All states in the region saw population gains between July 2024 and July 2025, buoyed by markets where housing stock has historically kept pace with demand.
Why it matters
Housing affordability remains a primary driver for families moving to the Midwest, but local supply constraints are emerging as a challenge. Maintaining this affordability depends on whether developers can outpace population growth to avoid the shortages seen in other states.
Le Mars, Iowa, stood out as the most affordable market in 2024 with a median household income of roughly $83,000, where residents spent only 17 percent of their income on housing. Conversely, Appleton, Wisconsin, shifted from a 0.5 percent surplus in 2012 to a nearly 6 percent housing shortage by 2023.
The players
Le Mars, Iowa
A community that serves as the benchmark for U.S. housing affordability due to its high median household income and low cost-of-living ratio.
Appleton, Wisconsin
A growing municipal market that illustrates how quickly housing surpluses can transition into a 6 percent supply shortage.
Jefferson City, Missouri
A state capital illustrating the regional trend of moving from housing equilibrium to a 3 percent supply deficit.
The details
Affordability in Midwestern markets is anchored by housing stock that traditionally exceeds demand, allowing supply to keep pace with new residents. However, restrictive land-use rules are increasingly creating bottlenecks that turn former surpluses into deficits, as seen in Jefferson City, Missouri, which moved from a surplus in 2019 to a current shortage of nearly 3 percent.
Timeline
2012: Appleton, Wisconsin, reported a housing surplus.
2019: Jefferson City, Missouri, reported a housing surplus.
July 2024 - July 2025: Every state in the Midwest experienced population growth.
2024: Le Mars, Iowa, ranked as the most affordable housing market in the nation.
2025: The Midwest recorded positive net domestic migration.
The Home Front
Midwestern affordability is currently being tested by the same supply-and-demand dynamics that have eroded housing stability in high-growth states. The region's ability to maintain its price advantage depends on overcoming land-use hurdles that are beginning to tighten housing inventories.
Review your local municipal planning reports to see if your area is currently facing a supply shortage or building surplus. If you are considering a move, compare your household income to the regional median to estimate your likely housing cost burden in a competitive market.
The takeaway
Affordability remains a hallmark of the Midwest, but growing populations are making housing supply a critical metric for every homeowner to watch. Track your local housing shortage percentages through city planning boards to stay informed on how regional growth may impact your home value.
Further reading
For more analysis on local market inventory, visit the Residential section.
Source note: This article includes information reported by 301 Moved Permanently.
Live Poll
Is housing in your community becoming more or less affordable for you?
