Comparing the urban and rural housing markets

City lovers enjoy the benefits of a life of ease in their metro/urban environment. Products, services and experiences abound, but there are big city concerns like crime and crowds. City dwellers also generally paid a lot more for less space than their rural dwelling counterparts.

In our analysis of June 2025 data, compiled by the National Association of Realtors, 1,181 counties were classified as metro, based on classifications from the U.S. Department of Agriculture’s Economic Research Service (ERS).^Footnote2 The ERS labels urban areas with more than 50,000 people as metro. The ERS found that the median home price in metro areas was $368,000, with a median size of 1,902 square feet.

In our chart above, which plots median prices against number of counties, we see the largest number of homes (514) in the metro category are clustered in the median ranges from $250,000 to $400,000.^Footnote1

• 158 counties had median prices from $250,000 - $300,000
• 187 counties had median prices from $300,000 - $350,000
• 169 counties had median prices from $350,000 - $400,000

The simpler, slower pace of rural living of the non-metro/rural environment best suits people who enjoy wider open spaces and less hustle and bustle. They have also generally bought more home for their money. But are there really more affordable homes in the non-metro areas?

The data showed the median home price in non-metro areas (1,931 counties and county-equivalents) was $260,000, and the median size was 1,779 square feet. In price-per-square-foot terms, the cost was $146 in non-metro areas versus $196 in metros.

Our chart shows the largest number of affordable homes (1,239) are in the range from under $200,000 up to $300,000, with the largest number of counties with medians under $200,000.^Footnote1

• 505 counties had median prices < $200,000
• 387 counties had median prices from $200,000 - $250,000
• 347 counties had median prices from $250,000 - $300,000

In an article published in July 2025, Realtor.com described a phenomenon called “townsizing.” Like vacationers seeking to escape city environments, potential homebuyers were also seeking better value and less congestion and yearning for a “slower pace of life,” as described by senior economic research analyst Hannah Jones.^Footnote3 The article highlighted the top townsizing locations, with median home prices, including:

• $651,000 median price in Three Rivers, CA
• $587,500 median price in Panguitch, UT
• $850,000 median price in Ouray, CO
• $399,000 median price in Gorham, NH

Taking a wide overview of the U.S. housing market, home prices, the number of homes sold and the number of homes for sale all look favorable. Data presented by Redfin in June 2025 shows that nationally, home prices were up 1.1% compared to June 2024, with a national median sale price of $447,435.^Footnote4

Year-over-year the number of homes sold was up 3.3%, with 486,512 homes sold in June 2025 compared to 471,086 in June 2024. The average 30-year fixed mortgage rate was at 6.8%, down 0.1 points from the previous year. Also, in June 2025, there were 2,057,937 homes for sale in the United States, up 12% from June 2024 — certainly favorable for buyers.

The Redfin data also indicated trends that seem to support the concept of townsizing, with people moving out of larger metro areas like Los Angeles, New York City and Seattle in favor of comparatively smaller metros like Sacramento, Phoenix and Cape Coral, Florida.

Helping your clients decide where to spend their homebuying money takes a careful and honest assessment of budget and ideals. They need to be able to picture where their lives would be richest while avoiding too rich of a selling price. There are many considerations beyond dollars and cents, and that’s where your expertise comes in. Helping clients form a more detailed view of the next chapter of their lives will help them determine where they belong, whether a city mouse or a country mouse.

We offer a collection of tools and resources, including affordability, mortgage and closing cost calculators for first-time buyers and prequalification assistance with the Bank of America Digital Mortgage Experience®. Let us partner with you to ensure your clients get the home that checks all their boxes.