The list includes a trio of Yorkshire-based practices: Above & Beyond, from Huddersfield; Leeds-firm Design Group 3 Architects; and Wakefield's NPS North East.
The five schemes will go through to the next stage of the competition, which seeks inspirational ideas for the modernisation of two Victorian housing typologies.
Entrants were asked to provide innovative solutions 'to today's lifestyle requirements' for two different house typologies in the struggling area of the city - the scene of the Bradford riots in 2001.
The practices had to come up with ideas for both a back to back mid-terrace and a large end-terrace.
Speaking about the finalists, Anthony Barnett, the RIBA architectural adviser for the competition, said: 'Despite the tight budget, entrants responded enthusiastically to the challenge, and produced some imaginative responses that raise the benchmark for domestic design. I rather fancy living in some of them myself .'
Final judging will take place on 3 September.