Seven of the Top 10 Most Affordable Small Towns Located in the Midwest

Midwest Small Towns Provide Big Benefits 

Before the days of COVID-19 and remote work, living in a small town meant a lack of job opportunities and entertainment.  

Today, small towns throughout the U.S. are thriving, thanks to homebuyers escaping urban markets with skyrocketing home prices. Many first-time homebuyers wanted more for their money and looked to the suburbs and well beyond for their solution.  

Small town USA has surprised new homebuyers with their charming main streets that boast entertainment options, spacious residential properties, expansive outdoor recreational areas, and of course affordable homes.  

“The Midwest is well-represented thanks to its affordable home prices and abundance of small towns,” says Danielle Hale, chief economist for Realtor.com. 

To figure out the best small towns, Realtor.com researched micropolitan areas (towns with 35,000 residents or less) with at least 30 listings, and towns with the highest number of eating and drinking establishments per 1,000 residents. 

Here are the top 10 most affordable small towns you want to live in:  

For the sake of this blog, we will highlight the small towns located in the Midwest. 

Elk City, OK 

• Median list price $159,000 
• 44 days on the market 

Albert Lea, MN 

• Median list price $159,900 
• 35 days on the market 

Jamestown, ND 

• Median list price $215,000 
• 67 days on the market 

Macomb, IL 

• Median list price $89,000 
• 128 days on the market 

Spirit Lake, IA 

• Median list price $319,900 
• 104 days on the market 

Madison, IN 

• Median list price $199,900 
• 29 days on the market 

Columbus, NE 

• Median list price $255,000 
• 67 days on the market 

Iron Mountain, MI 

• Median list price $132,000 
• 36 days on the market  

It’s clear from this market data that homes are affordable, and in most of these small towns, competition for homes isn’t high, compared to other markets in the country. Each market provides their own flavor and taste for small-town living, beyond the obvious benefits of purchasing a home.  

As this shift in housing interest continues, we can expect to see small towns grow and shift into new micro hubs comprised of all walks of life, mixing blue-collar and white-collar workers that are like-minded in the communities they want to live in.