Homebuyers with a $400,000 budget face a dramatically tighter market across much of the United States, according to a new analysis from real‑estate portal Movoto by Lower. The study compared active single‑family listings in 228 cities with populations of at least 100,000 between May 2020 and May 2026.
National decline in affordable inventory
In 2020, homes priced under $400,000 made up the majority of listings in most major markets – a median share of 72.6%. By 2026 that median share had fallen to just 28%, the steepest percentage‑point drop among the five price thresholds examined ($250,000, $300,000, $350,000, $400,000 and $500,000).
Overall, the median share of active listings under $400,000 across the cities studied is now only 35.7%.
Regional hotspots of change
California’s inland communities saw some of the most pronounced shifts. In Hesperia, nearly nine‑in‑ten listings were under $400,000 in 2020; by 2026 that figure dropped to just 7%. Victorville experienced a similar plunge, from 96.2% to fewer than 20% of listings. North Las Vegas also moved from almost every home being under $400,000 to less than a quarter.
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 – while Coral Springs, Florida, was the sole out‑of‑state example. Five of the ten had at least some sub‑$400,000 listings in 2020; Coral Springs fell from 31.8% to zero.
Midwest and other markets where affordability remains
Not all regions have seen the same erosion. In Warren, Michigan, nearly every active listing remains under $400,000, and Detroit follows closely at 96.4%. Cleveland and Toledo, Ohio, along with Lansing, Michigan, also retain more than 94% of listings below the $400,000 mark.
Broader price‑point trends
The decline is not limited to the $400,000 tier. Listings under $350,000 dropped from a median 58% in 2020 to 14.8% in 2026. The $300,000 bracket fell from 42.4% to just 5.4%. Even the $500,000 segment saw a reduction, from 84.6% to 55.7%.
Higher borrowing costs compound challenges
Buyers also confront rising mortgage rates. Freddie Mac reports the average 30‑year fixed rate rose from 3.15% in late May 2020 to 6.71% as of September 3, 2026. Higher rates increase monthly payments, further squeezing families seeking homes within the $400,000 range.
Implications for home seekers
For families with a $400,000 budget, options now vary widely by location. In many western and coastal markets, few or no homes meet that price point, prompting buyers to broaden their search or consider more affordable regions. Conversely, in parts of the Midwest and the Great Lakes area, the budget still captures the bulk of available inventory.
The Movoto analysis reflects active listing prices, not final sale prices, and is intended to illustrate the shifting mix of homes on the market rather than to define affordability for any individual buyer.
Original reporting: El Paso News (HLL/CB) — read the source article.
