Realtors Predict These 5 River Towns Are Great for Hopeful Homebuyers

Early civilizations often formed near rivers because the natural irrigation made fertile land for agriculture, and the flowing water provided both drinking water and waste removal. Humans have advanced technologically to meet those needs without a nearby river, yet river towns remain a popular place for people to settle down. They offer the charm of evening walks along the water, easy access to water sports, and tend to have a rich history that goes along with long-time settlements of people inhabiting the area.

In modern society, there are other benefits to living in a river town. Potential job opportunities can attract new residents, such as expanding tourism or an increase in employment in port cities. Having a view overlooking the river doesn’t hurt, either.

Home pricing is still on the rise, but there are still some affordable river towns where it’s easier to make money moves and build wealth. Check out this list of five river towns that are still within reach for anyone who has ever dreamed of living by the water.

Located by the Ocklawaha River, Ocala is known for their thoroughbred horses and close proximity to Silver Springs which often attracts tourists. According to Omer Reiner, a licensed REALTOR® and president of FL Cash Home Buyers, LLC, Ocala offers a lower cost of living than beach-side cities and has an especially low tax rate.

“Florida doesn’t have a state or local income tax, and Ocala’s tax rate is actually lower than the state average,” he says. “The overall cost of living in the city is about 15% below the national average as well.”

Ocala is also home to the second largest national forest in the state, which offers many scenic trails for hiking — and you might just spot a monkey in those trees! The nearby Silver Springs has a colony of rhesus macaques that were accidentally introduced into the ecosystem as part of a jungle cruise ride, but have since made themselves at home and refuse to leave.

Nestled in the confluence of the Tennessee and the Ohio rivers, Paducah has St. Louis on one side and Nashville on the other. “I can suggest Paducah, KY as a good example of a market where affordability and character meet,” Chad Phillis, founder and CEO of Checkmate Rentals, says. “The median price of homes in Paducah is roughly $125,000, and the cost of living is much lower than that of larger urban centers, providing a very welcome entry into home ownership.”

This little river town has a population of about 27,000 which blends historical charm with a thriving arts scene through conscientious urban planning and community engagement — which goes hand-in-hand with supporting property values. The cost of living is about 15%, which is 20% lower than the national average, so it’s not just the housing that’s affordable.

Waterfront property near Nashville in an affordable price range can be hard to find, but Old Hickory is said to still be a bit of a secret, according to realtor Dylan Calvo of Calvo Real Estate Team. He sees a younger crowd beginning to move into the area, which also offers a large rental market — with prices starting around $900 a month — for those not yet ready to purchase a home.

“It has a median price of $407,475 for single-family homes, according to our MLS Realtracs data; however, you can definitely find much lower than that,” Calvo continues. “There are affordable homes here that are right next to the Cumberland River, ranging from $300,000 to $380,000.”

If you’re looking for an affordable house in decent condition in Old Hickory, Calvo says you can expect to pay a starting price of around $300,000 in 2025. Prices have been significantly on the rise over the past decade, but Old Hickory remains one of the more affordable gems of the area.

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California isn’t known for affordable housing prices, but Riverside may be poised for an adjustment because of a few key factors making it vulnerable to downward pressure on prices, according to Aleks Grigoriev, co-founder and CEO of Priority Home Buyers at Sell My House Fast DC, who predicts the area may see a drop in prices this year. And, that’s something he says has a lot to do with the local economy, which is struggling to make gains post-pandemic.

“With a 1.7% annual job growth rate as of mid-2023, the region struggles to keep pace with population growth, leading to reduced buyer confidence and purchasing power,” he says. “Riverside County’s inventory has been climbing, with a 15% year-over-year increase in active listings as of mid-2023.

Grigoriev says that this oversupply, combined with a reduction in buyer demand, is putting downward pressure on prices.

The median home price is currently $645,000, which is lower than coastal markets in the area but still unaffordable for many local residents. Combined with significant risk of wildfires, the Riverside market could be seeing a price drop soon.

It’s easy to overlook the small town of Craig with a population of roughly 9,000 nestled against the Yampa River, but the double-whammy in 2020 of the coal-fired power plant closing and the pandemic has left the sleepy town a potential gem for those seeking a home on the river with plenty of outdoor adventure opportunities.

Prices were down 39.9% as of January 2025 compared to the previous year, according to Redfin, making the median price about $200,000. The area is surrounded by beautiful western wilderness, with strong Old West vibes running through the history of the county.

The river offers plenty of whitewater rafting tours, but there is also lots of land for hiking, fishing, dirt biking, horseback riding, and even golf. Winter brings the perfect conditions for skating, snowmobiling, ice fishing, and cross-country skiing.

Flood zone insurance is always a topic of concern for river towns, and the current homeowners insurance market is highly volatile — but this hasn’t seemed to deter buyers from investing in riverfront properties that will likely appreciate in value.

The increasing desirability of riverside living combined with homebuyers looking to lower financial stress means that investing in a home property by a river could be a smart move.