U.S. housing market sees sharp decline in homes under $400,000

The supply of single-family homes priced under $400,000 has significantly declined across major U.S. cities over the last six years. According to an analysis by real estate portal Movoto by Lower, the median share of listings under this price point fell from 72.6% in 2020 to 28% in 2026.

Inventory shortages are particularly acute in California. In Hesperia, listings under $400,000 dropped from 89.5% in 2020 to just 7% in 2026. Ten major cities analyzed had no active listings below $400,000, with nine of those located in California.

In contrast, the Midwest maintains a higher concentration of affordable housing. In cities such as Warren, Detroit, and Lansing, Michigan, as well as Cleveland and Toledo, Ohio, more than 94% of listings remain under the $400,000 threshold. The decline in inventory is observed across multiple price tiers, including those under $250,000 and $300,000.