6 Cities for Cheapest Real Estate in the US in 2023

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It’s no secret that commercial real estate prices have been on the rise in recent years, despite potential economic headwinds. Experts expect that trend to continue as demand for office space, multifamily housing, and other commercial properties continues to increase. As such, the pressure is on for those looking to find the cheapest real estate in US cities.

If you’re looking to invest in commercial real estate, these six metros are where you’ll find the most affordable property prices in 2023. Prices are low now, but forecasts project an increase over the next few years, making them ideal markets for those looking to get the best possible ROI.

We ranked these top markets in alphabetical order and listed as “Affordable West” and “Eds and Meds” (with more higher education and medical facilities) markets, according to Emerging Trends in Real Estate 2023 from PwC. We supplemented these data with insights from Crexi Intelligence. Per capita GDP and population growth over the next five years should remain solid and steady, the cost of doing business is low, and rental housing is still relatively affordable.

Tucson, AZ, is one of the cheapest real estate in US cities
Golden light reflects off the buildings in the downtown city center of Tucson Arizona

Considerations for commercial real estate investing

When looking for the cheapest cities to invest in commercial real estate, the local economy is one of the most important things to consider. Although many may assume that cities like Atlanta are the cheapest for commercial real estate, the cost of office space and home costs in other, smaller cities is significantly lower and, by necessity, more competitive. This is what makes high-population growth areas like the West so attractive to investors.

How to find cheap commercial real estate

To find the cheapest real estate in your area, you’ll need to know the right questions to ask. A commercial real estate search platform like Crexi is an excellent place to start your search.

Crexi is the fastest-growing commercial real estate site and has more than 130,000 properties for sale, 250,000 spaces for lease, and over 13 million sales comparables. You can narrow down your search based on a variety of criteria, including size and zoning. You can also filter listings by price range and property type, including office, retail, industrial, and mixed-use.

Albuquerque, NM, is one of the cheapest real estate in US cities
2009 Albuquerque Internation Balloon Fiesta


Albuquerque is nicknamed “the land of enchantment” for a good reason. The city is known for its warm weather and rich cultural history and is a popular destination for tourists. Its growing tech industry also makes it a desirable location for businesses, with major players like Airbnb and Netflix setting up offices in the city.

Metropolitan Albuquerque ranks 4th in the nation in construction jobs added over the past 12 months, recording a 15% increase year-over-year. The Albuquerque Journal notes, “With rock bottom vacancies in the industrial real estate market and increasing demand in all real estate markets, finding affordable space is becoming more difficult around Albuquerque.” As of this writing, there are nearly 900 spaces for rent in the city listed on Crexi.

Madison, WI, is one of the cheapest real estate in US cities


Madison, Wisconsin’s capital city, is known for its strong economy driven by technology, healthcare, insurance, and education industries. Its diverse population and vibrant arts scene make it a popular destination for young professionals. Plus, the city’s bike-friendly infrastructure allows businesses to cater to environmentally conscious customers.

WalletHub ranks Madison as the 4th best city for STEM jobs, far ahead of other tech centers like San Francisco and Raleigh. The metro area also earned top ratings for professional opportunities and quality of life based on key metrics such as STEM graduates per capita and housing affordability. Per Crexi data, household income has steadily increased over the last few years. It’s expected to grow by 3% by 2026, pointing to healthy population and spending capital growth.


Sacramento may not be as well-known as California’s coastal cities, but it offers much to investors in commercial real estate. The city’s low cost of living and proximity to tech markets like San Francisco and Silicon Valley make it an attractive option for businesses.

As the most recent Sacramento MarketBeat reports from Cushman & Wakefield reveal, multifamily vacancy remains at less than 4% and industrial absorption is at 1.4 million square feet year-to-date. At the same time, the office market continues to offer potential opportunities for both tenants and buyer-investors.

Sacramento, CA, is one of the cheapest real estate in US cities

Spokane, WA/Coeur d’Alene, ID

The Spokane/Coeur d’Alene region offers investors the chance to tap into a bustling metropolitan area and beautiful natural surroundings. Spokane is known for its healthcare industry and historic buildings that have been transformed into unique shopping and dining destinations.

Nearby Coeur d’Alene offers access to outdoor recreation opportunities surrounded by abundant lakes and mountains. Investing in commercial real estate in this region taps into both the urban appeal of Spokane and the natural draw of Coeur d’Alene. Both markets also currently provide lower costs compared to big coastal cities like Seattle or Los Angeles.

According to the Spokane Workforce Council, healthcare and social assistance are the fastest-growing industry sectors in Spokane County. Over 5,000 jobs in the sector have been created over the past five years alone, turning Spokane into a regional healthcare hub for Eastern Washington and Northern Idaho.

Spokane, WA, and Coeur d'Alene, ID, are together one of the cheapest real estate in US cities.


Tacoma may often play second fiddle to neighboring Seattle, but it has plenty of investment potential in commercial real estate. The city has seen recent redevelopment efforts to revitalize its urban core while maintaining its historical charm. Such efforts reflect in buildings like the neoclassical City Hall building or Wing Luke Museum celebrating Tacoma’s Asian-Pacific American heritage.

The South Sound area is one of the hottest submarkets in Tacoma, offering a compelling option for those looking for the cheapest real estate in US cities. Investors and tenants explore the region, attracted by land availability, good highway access, proximity to Portland and Seattle, lower rents, and housing affordability.

Tacoma, WA, is one of the cheapest real estate in US cities
Mount Rainers seems to be right on top of a neighborhood in Tacoma, Washington.


Arizona’s larger cities, like Phoenix or Flagstaff, may sometimes overshadow Tucson. However, this desert oasis offers thriving industries such as aerospace and defense, education, technology, and healthcare. It also boasts gorgeous natural surroundings, including Saguaro National Park, where visitors can see iconic cacti towering over the Sonoran Desert landscape.

The city’s diverse economy presents potential benefits for commercial real estate investors, including access to domestic and international markets and talented employees from nearby universities.

Experts project Tucson’s annual population growth rate over the next five years to surpass the national average. This is due in part to the lower cost of housing and abundant job opportunities in the region. According to the Tucson Metro Market Overview 2022 from CBRE, companies save 3%-12% on average on labor costs compared to nearby markets like Phoenix, Las Vegas, and Riverside.

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Shanti Ryle
Shanti Ryle

Content Marketing Manager

Shanti leads Crexi's content marketing strategies with 7+ years of content development experience, creating everything from blog posts to award-winning podcasts. Previously, she worked on content teams at Snapchat, Weedmaps, and HopSkipDrive as well as developed copy, articles, and media for freelance publications.

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