If sky-high home prices have you feeling priced out, you’re not alone. Nearly 85% of U.S. metro areas are now considered overvalued, according to a Fitch Ratings report — including many that used to be seen as affordable.
But here’s the good news: America’s “second cities” — smaller, often overlooked metros that offer affordability, community, and growing job markets — open a new wave of opportunity. Many of these second cities are also among the fastest-growing housing markets in the country, making them smart picks for both lifestyle and long-term value.
In many cases, buyers are seeing significant savings by choosing homes in these rising-star markets instead of traditional major locales — helping them turn the dream of homeownership into a reality.
Explore your home buying options. Start hereWhy prices are spinning out of control
Let’s be honest, affordability is the biggest barrier for most first-time homebuyers right now.
Fitch Ratings’ latest report shows that 85% of U.S. metro areas were overvalued in the third quarter of 2024. Cities like Buffalo, NY, and Rochester, NY — once considered budget-friendly alternatives — are now showing signs of price inflation.
The overvaluation isn’t just happening on the coasts anymore. It’s everywhere. And it’s forcing many Americans to rethink where — and how — they buy a home.
Second cities: The new housing hotspots
Secondary cities are stepping up in a big way. Thanks to remote work, a growing number of Americans are no longer tied to expensive urban hubs. They’re choosing places that offer a lower cost of living, vibrant local communities, and good career prospects — without the million-dollar price tag.
Here are just a few examples of second cities gaining major attention:
- Louisville, KY
- Des Moines, IA
- Greenville, SC
These cities offer what many first-time buyers are desperate for: reasonably priced homes, lower competition, and a better chance at building wealth through homeownership.
Time to make a move? Let us find the right mortgage for youHow much can you really save?
The savings are real — and significant.
According to the NY Post article, moving to one of these emerging second cities can save you nearly $200,000 compared to buying a home in a larger, overvalued market. That could mean a smaller mortgage, lower monthly payments, and a lot less financial stress.
For many buyers, it’s the difference between owning a home now and having to wait years — or worse, giving up on the dream altogether.
What first-time buyers should watch for
While second cities offer a lot of potential, it’s important to do your homework:
- Look for cities with stable job markets.
Remote work is great, but having local opportunities matters too. - Research local housing trends.
Even some second cities are starting to see rapid price gains — get in before it gets too hot. - Factor in lifestyle needs.
Think about healthcare, schools, transportation, and community amenities — not just housing prices.
The bottom line
The old idea of having to buy in a major metro to “make it” is changing. Second cities are offering first-time homebuyers something that’s getting harder to find elsewhere: a real shot at homeownership, financial security, and a better quality of life.
If high prices have you feeling stuck, remember — your dream home might just be waiting in a second city. And don’t forget: many states and local governments offer down payment assistance programs and first-time buyer grants that can help you get started sooner than you think.
