Homebuyers with a $400,000 budget are facing a very different market than they did six years ago. Movoto by Lower examined active single‑family listings in U.S. cities of at least 100,000 residents and found the median share of homes priced under $400,000 dropped from 72.6% in 2020 to 28% in 2026.
National decline and price‑point trends
The study tracked five price thresholds – $250,000, $300,000, $350,000, $400,000 and $500,000 – and discovered that every tier saw a lower share of listings in 2026. The $400,000 level experienced the steepest percentage‑point loss. Listings under $350,000 fell from 58% to 14.8%, under $300,000 from 42.4% to 5.4%, and even the $500,000 bracket slipped from 84.6% to 55.7%.
Sharpest drops in the West
California’s inland cities bore the brunt of the shift. In Hesperia, nearly nine out of ten homes were under $400,000 in 2020; by 2026 that share fell to just 7%. Victorville saw a similar plunge, from 96.2% to fewer than 20%. North Las Vegas also moved from a market dominated by sub‑$400,000 homes to one where less than a quarter of listings meet that price.
Ten major cities reported no active single‑family listings under $400,000 in May 2026. Nine of those were 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 inventory in 2020; Coral Springs fell from 31.8% to zero, while Fontana and Riverside also dropped to none.
Midwest still offers affordability
By contrast, the Midwest remains a stronghold for affordable housing. In Warren, Michigan, almost every active listing stays under $400,000, and Detroit follows closely at 96.4%. Cleveland and Toledo, Ohio, along with Lansing, Michigan, also report more than 94% of listings below the $400,000 mark.
Higher mortgage rates add pressure
Buyers are not only confronting a slimmer inventory but also higher borrowing costs. The average 30‑year fixed mortgage rate rose from 3.15% in late May 2020 to 6.71% as of September 3, 2026, according to Freddie Mac. The combination of fewer affordable listings and steeper rates means monthly payments are climbing for many families.
What the data means for home seekers
For those with a $400,000 budget, options now vary dramatically by location. In many Western metros, the search may require expanding the geographic radius or adjusting expectations. In the Midwest, buyers can still find a wide range of homes within that price range.
The Movoto analysis focused on cities with at least 100,000 residents and required a minimum of 100 active listings per year. The 2020‑2026 comparison includes 228 cities that met those criteria in both years, while the 2026‑only snapshot covers 281 qualifying cities. Because the city pool differs, the two sets of figures should not be directly compared.
Looking ahead
The shift in inventory underscores how the pandemic‑driven price surge continues to reshape the housing market. While some regions retain a robust supply of affordable homes, others have effectively priced out many first‑time buyers and families seeking to stay within a $400,000 budget.
Original reporting: KTVZ (Central Oregon) — read the source article.
