The U.S. city with the lowest housing prices is typically found in the rural or less populated areas. For instance, as of the latest available data, cities like McAllen, Texas, or Jackson, Mississippi, often rank among the lowest in terms of housing affordability. These cities have lower housing prices due to a combination of factors, including lower demand, a higher supply of housing, and generally lower cost of living.

McAllen, Texas, for example, has been consistently ranked as one of the most affordable cities in the U.S. The median home price in McAllen is significantly lower than the national average, which is largely due to the city's lower cost of living. According to the U.S. Census Bureau, the median home value in McAllen was around $100,000 in 2021, compared to the national median of approximately $300,000. This affordability is attributed to several factors. Firstly, McAllen has a lower population density, which means there is more housing available relative to the number of residents. Secondly, the city has a lower cost of living, which includes lower prices for goods and services, as well as lower taxes. Lastly, the real estate market in McAllen has not experienced the same level of growth as in more urban areas, which has helped to keep prices low.

Similarly, Jackson, Mississippi, is another city with notably low housing prices. The median home value in Jackson was around $120,000 in 2021, which is also significantly lower than the national median. The city's affordability is driven by a combination of economic factors, including a lower cost of living, a stable job market, and a relatively low population growth rate. These factors contribute to a more balanced real estate market, where housing prices remain stable and affordable for residents.

The reasons behind these low housing prices in rural or less populated areas are multifaceted. One key factor is the lower demand for housing in these regions. With fewer people moving to these areas, there is less competition for housing, which helps to keep prices down. Additionally, the cost of living is generally lower in these areas, which includes not only housing but also other expenses such as groceries, transportation, and healthcare. This lower cost of living makes it easier for residents to afford housing, even when prices are relatively low.

Furthermore, the supply of housing in these areas is often higher than the demand, which also contributes to lower prices. Developers may be less inclined to build new housing in these regions due to the lower population density and economic activity, leading to a surplus of available housing. This surplus helps to keep prices in check.

In conclusion, cities like McAllen, Texas, and Jackson, Mississippi, have the lowest housing prices in the U.S. due to a combination of lower demand, a higher supply of housing, and a lower cost of living. These factors create a more balanced real estate market, where housing prices remain affordable for residents.