Housing Trends

Bargain Hunters, Rejoice: Top 20 Emerging Housing Markets Deliver on Affordability This Fall in the D.C., Maryland, and Virginia Region

As of fall 2025, the real estate landscape in the Washington, D.C., Maryland, and Virginia (DMV) area presents a unique opportunity for buyers seeking affordability amidst a fluctuating market. While the broader region experiences rising home prices and inventory shortages, certain neighborhoods and counties offer more budget-friendly options without compromising on quality of life.

Washington, D.C. Metro Area

1. Anacostia (D.C.)
   Once overlooked, Anacostia has seen a resurgence due to community-led development and increased investment in public infrastructure. The median home price remains below $400,000, offering potential for appreciation as the area continues to gentrify.
2. Deanwood (D.C.)
   With its proximity to the Minnesota Avenue Metro station, Deanwood is attracting first-time homebuyers and investors. The neighborhood offers single-family homes and rowhouses at prices significantly lower than the city average.
3. Fort Totten (D.C.)
   Benefiting from recent transit-oriented development, Fort Totten provides affordable housing options with easy access to downtown D.C. The area’s median home price is approximately $450,000, making it accessible for young professionals.
4. Congress Heights (D.C.)
   This neighborhood is undergoing revitalization with new retail and community centers. Homes here are priced below $350,000, presenting opportunities for equity growth as development continues.

Maryland

5. Oxon Hill (Prince George’s County)
   Located near National Harbor, Oxon Hill offers affordable single-family homes with easy access to major highways and public transportation. The median home price is around $375,000, appealing to commuters and families.
6. Suitland (Prince George’s County)
   Suitland provides budget-friendly housing options with a median home price of $325,000. The area is benefiting from infrastructure improvements and proximity to federal employment centers.
7. Temple Hills (Prince George’s County)
   With a median home price of $300,000, Temple Hills offers affordable housing in a suburban setting. The area is attracting buyers seeking value without sacrificing convenience.
8. Baltimore City (Various Neighborhoods)
   Neighborhoods like Highlandtown, Hamilton, and Belair-Edison offer homes under $250,000. These areas are experiencing gradual gentrification, making them ripe for investment.
9. Hagerstown (Washington County)
   Hagerstown’s median home price is approximately $200,000, offering affordability for families and retirees. The city’s revitalization efforts are enhancing its appeal.
10. Frederick (Frederick County)
    While Frederick’s median home price has risen to around $450,000, it remains more affordable compared to other parts of Maryland. The city’s historic charm and amenities continue to attract buyers.

Virginia

11. Danville (Pittsylvania County)
    Danville offers a low cost of living with median home prices around $110,200. The city’s revitalized downtown and lack of Social Security income tax make it attractive for retirees .
12. Martinsville (Martinsville City)
    Martinsville provides affordable housing options with a median home price of $125,000. The area is focusing on economic diversification and community development.
13. Hopewell (Hopewell City)
    With a median home price of $150,000, Hopewell offers budget-friendly housing. The city’s proximity to Richmond and industrial base support its economic stability.
14. Petersburg (Petersburg City)
    Petersburg’s median home price is approximately $160,000. The city’s historical significance and ongoing revitalization efforts make it appealing for investors.
15. Lynchburg (Lynchburg City)
    Lynchburg offers a median home price of $200,000. The city’s educational institutions and cultural amenities contribute to its livability.
16. Roanoke (Roanoke City)
    Roanoke’s median home price is around $210,000. The city’s outdoor recreational opportunities and healthcare sector support its economy.
17. Blacksburg (Montgomery County)
    Blacksburg provides a median home price of $220,000. The presence of Virginia Tech and a strong tech industry bolster the local economy.
18. Abingdon (Washington County)
    Abingdon’s median home price is approximately $230,000. The town’s historic district and cultural events enhance its appeal.
19. Big Stone Gap (Wise County)
    Big Stone Gap offers a median home price of $240,000. The town’s scenic beauty and community-oriented lifestyle attract residents.
20. Wytheville (Wythe County)
    Wytheville’s median home price is around $250,000. The town’s location along major highways and emphasis on tourism support its economy.

Market Trends & Insights

• Inventory Levels: The Washington, D.C. metro area has experienced a significant increase in active listings, with a 40.1% rise year-over-year by the end of July 2025. This surge indicates a shift towards a more balanced market, providing more options for buyers .
• Affordability Challenges: Despite the increase in listings, affordability remains a concern. In Maryland, a renter needs to earn more than twice the minimum wage to afford a one-bedroom apartment, highlighting the ongoing affordability crisis .
• Interest Rates: Mortgage rates have more than doubled from 2.99% in June 2021 to 6.82% in June 2025, significantly raising monthly payments and impacting affordability .

Strategic Considerations for Buyers

• Explore Emerging Markets: Consider neighborhoods and counties with lower median home prices and ongoing development, such as Anacostia, Oxon Hill, and Danville.
• Monitor Interest Rates: Stay informed about mortgage rate trends and consider locking in rates when favorable.
• Evaluate Long-Term Value: Focus on areas with potential for appreciation due to infrastructure improvements and community development.
• Consult Local Experts: Engage with real estate professionals familiar with emerging markets to navigate the evolving landscape effectively.

By strategically targeting these emerging markets, buyers can find affordable housing options in the D.C., Maryland, and Virginia region, balancing cost with potential for long-term value.