Homebuyers with a $400,000 budget are facing a dramatically tighter market. Movoto by Lower examined active single‑family listings in 228 U.S. cities with populations of at least 100,000 and found the median share of homes priced under $400,000 dropped from 72.6% in 2020 to just 28% in 2026.
Why the shift matters
The decline mirrors years of rising home prices, especially during the COVID‑19 pandemic when buyer demand surged. While the overall inventory of lower‑priced homes has shrunk at every price point examined, the $400,000 tier experienced the steepest percentage‑point drop.
Hardest‑hit markets
Southern California cities that once offered affordable alternatives to high‑cost coastal areas saw the biggest losses. In Hesperia, nearly nine out of ten listings were under $400,000 in 2020; by 2026 that fell to just 7%. Victorville’s share fell from 96.2% to under 20%, and North Las Vegas saw a similar plunge.
Ten major cities reported no active single‑family listings under $400,000 in May 2026. Nine of those cities are in California – Anaheim, Corona, Riverside, San Francisco, Huntington Beach, Fremont, Fontana, Irvine and Tracy – with Coral Springs, Florida, the sole out‑of‑state example. Five of these cities had some sub‑$400,000 listings in 2020; Coral Springs dropped from 31.8% to zero.
Markets where affordability remains
Midwestern cities paint a different picture. In Warren, Michigan, almost every active listing stays under $400,000, and Detroit follows at 96.4%. Cleveland and Toledo, Ohio, and Lansing, Michigan, also retain more than 94% of listings below the $400,000 mark.
Broader price‑point trends
Across the 228‑city sample, listings under $350,000 fell from 58% to 14.8%, and those under $300,000 dropped from 42.4% to 5.4%. Even the $500,000 tier saw a decline, moving from 84.6% in 2020 to 55.7% in 2026.
Higher borrowing costs compound the challenge
Mortgage rates have more than doubled since the pandemic, rising from an average 3.15% on a 30‑year fixed loan in late May 2020 to 6.71% as of September 3 2026, according to Freddie Mac. Higher rates increase monthly payments, further limiting what buyers can afford even when a lower‑priced home is available.
What buyers can do
Prospective homeowners may need to broaden their search radius, consider neighboring states, or adjust expectations about home size and features. In markets where sub‑$400,000 listings have vanished, expanding the budget or looking at older properties may be the only path forward.
Methodology note
Movoto’s analysis used active single‑family listings from May of each year between 2020 and 2026. Cities required at least 100 active listings in a given year to be included. The 2020‑2026 comparison covers 228 cities that met this threshold in both years; a broader 2026‑only snapshot includes 281 cities, so the two sets are not directly comparable.
This story was produced from Movoto’s data and reviewed by Stacker.
Original reporting: KRDO (Colorado Springs metro) — read the source article.
