Shildon, known for its railway heritage and home to the Locomotion museum, offers median prices of just £73,900 - barely more than a year's combined earnings for a typical two-income household, according to Zoopla.
Nearby County Durham locations of Peterlee and Ferryhill also appear on the property company's list of affordable areas.
The study showed how the North East and Scotland dominate the rankings for accessible housing, while the East and South East are deemed less affordable, highlighting "a significant geographical divide in housing value for home buyers", Zoopla said.
Locomotion, Shildon (Image: SARAH CALDECOTT)
In Shildon, home buyers can expect to pay just 1.23 times average local earnings for a typical property, making it far more accessible than South East towns where average home cost is more than 10 times local incomes.
Zoopla's list of top ten most affordable towns with median average home value are:
Zoopla's affordability calculations use the house price-to-earnings ratio for two-earner households on full-time local wages.
Beaconsfield, in Buckinghamshire was identified as the least affordable town, with an average house price of £1,112,000 - more than 15 times average household earnings.
On average, two earners looking to buy a home can expect to pay 4.4 times their average combined annual earnings - slightly lower than 4.5 times in 2024, Zoopla said.
Richard Donnell, executive director at Zoopla, said: "Our latest affordable towns research clearly highlights the wide gulf in the affordability of housing for home buyers across the UK and within regions.
"To have the most affordable town, Shildon in the North East, requiring barely more than one year's local pay, contrasted against Beaconsfield where the cost is over 15 times average earnings, shows the challenges facing those looking to move home."
Shildon's affordability comes after hundreds of steam enthusiasts flocked to the town in September to watch a newly restored replica of Locomotion No.1 re-enact the birth of the railway line 200 years ago.
Locomotion in Shildon. (Image: SARAH CALDECOTT)
Zoopla's research revealed how home buyers are now looking further afield to find value, with Scotland and the North East offering the most accessible options for families on average incomes.
"The days of most people moving within five miles of where they live are over," added Mr Donnell.
"We can see that a growing number of buyers are having to look further afield to find better value for money and they need the tools to make informed buying decisions."