Buying a house is a significant milestone for many people in the United States. Whether it's a first house, an investment property, or a place to retire, purchasing a home is one of the largest buying decisions individuals make. The price of houses is constantly changing, influenced by job markets, housing supply, weather, access to attractions, and geographic location. In this article, we will explore the average house prices by state in the US. We'll delve into the diversity of housing costs across the country and offer insights on how choosing the right location can save potential homebuyers a significant amount of money.
Map with Typical House Value by US State (2022)
Table with House Prices by US State
| State | Value |
|---|---|
| Alabama | $204,965 |
| Alaska | $337,373 |
| Arizona | $458,907 |
| Arkansas | $177,710 |
| California | $816,804 |
| Colorado | $604,911 |
| Connecticut | $383,222 |
| Delaware | $355,181 |
| Florida | $415,762 |
| Georgia | $318,273 |
| Hawaii | $1,038,544 |
| Idaho | $476,198 |
| Illinois | $269,575 |
| Indiana | $221,437 |
| Iowa | $192,568 |
| Kansas | $206,176 |
| Kentucky | $197,644 |
| Louisiana | $214,522 |
| Maine | $360,836 |
| Maryland | $415,797 |
| Massachusetts | $611,819 |
| Michigan | $234,386 |
| Minnesota | $340,122 |
| Mississippi | $164,132 |
| Missouri | $231,062 |
| Montana | $449,723 |
| Nebraska | $239,814 |
| Nevada | $484,530 |
| New Hampshire | $450,827 |
| New Jersey | $480,275 |
| New Mexico | $296,395 |
| New York | $375,719 |
| North Carolina | $322,055 |
| North Dakota | $282,461 |
| Ohio | $213,360 |
| Oklahoma | $181,574 |
| Oregon | $534,956 |
| Pennsylvania | $267,549 |
| Rhode Island | $443,482 |
| South Carolina | $293,445 |
| South Dakota | $292,488 |
| Tennessee | $297,943 |
| Texas | $314,718 |
| Utah | $588,862 |
| Vermont | $358,862 |
| Virginia | $379,206 |
| Washington | $640,494 |
| West Virginia | $137,286 |
| Wisconsin | $266,750 |
| Wyoming | $320,939 |
(Data Source: Fool.com research)
Median, Highest, and Lowest Price
10 Most Expensive States - Why move there?
Why are houses more expensive in some states compared to others? It's not a random occurrence. Attractive job markets, beautiful weather, favorable tax incentives, and desirable locations are all reasons that contribute to expensive housing in certain states. Prices are determined by the basic concept of supply and demand. These states have high housing prices because demand is high – people want to live there!
In this section, we'll explore the top ten most expensive states in the US and uncover why they have such high housing prices and why you might consider moving there.
1. Hawaii
Typical house price: $1,038,544
Image: Kailua, Hawaii
By a long shot, Hawaii takes the crown for having the most expensive housing in the US. It's the only state where the typical house price in 2022 exceeds $1 million. Hawaii stands unique as the only state not in North America, the only state in the tropics, and the only island state.
The special features of Hawaii contribute to its astronomical house prices. The state offers unparalleled access to tropical beaches and island life, but such luxury comes at a cost. Although the median income in Hawaii is 20% higher than the national median income, the average mortgage payment still accounts for 78.3% of the state's median income.
2. California
Typical house price: $816,804
Image: San Fransisco, California
The second most expensive homes in the US can be found in California. However, housing prices within the state are not consistent throughout. The most expensive markets, such as San Fransisco and the Bay Area, contribute significantly to California's ranking among the most expensive areas in the country.
California has long been a popular state to move to, boasting beautiful beaches, year-round warm weather in certain regions, a high-paying job market, and iconic cities like San Fransisco and Los Angeles. However, the combination of high-paying jobs and high housing demand has driven house prices skyward. California's population density and popularity make it one of the most expensive places to buy a house.
3. Washington
Typical house price: $640,494
Image: Seattle, Washington
Tucked away in the far northwest corner of the United States, Washington takes the bronze medal for its expensive housing market. While the typical house price in Washington is almost $200,000 lower than in California, it still surpasses half a million dollars. Average mortgage payments in Washington account for 49% of the state's median income.
But why would anyone choose to live in Washington state despite its high housing costs? Well, there are plenty of reasons. The state offers an abundance of stunning natural landscapes, mostly mild weather, and a wide range of high-paying job opportunities. It is also home to major corporations such as Microsoft, Amazon, Boeing, and Starbucks.
4. Massachusetts
Typical house price: $611,819
Image: Massachusetts
Following Washington, the state with the next most expensive housing is located on the clear opposite side of the country in the northeast: Massachusetts. This is the most populous state in the New England region, and its capital city, Boston, is the most populous city in the region.
Venture capital investment, information technology, biotechnology, and higher education play significant roles in Massachusetts' economy. Boston is also home to Harvard and MIT, two world-renowned educational institutions.
5. Colorado
Typical house price: $604,911
Image: Denver, Colorado
With a typical house price just slightly lower than Massachusetts, Colorado claims the fifth spot on the list of most expensive states for homebuyers. Commonly referred to as the "mile-high state," it has the highest mean elevation of any state in the US and is home to some of the country's tallest mountains. This makes it a highly popular winter tourism destination for outdoor and snow-sport enthusiasts.
The average mortgage payment for a house in Colorado accounts for 45% of the state's median income, which is 22% higher than the national median income.
6. Utah
Typical house price: $588,862
Image: Herriman, Utah
At 137% of the typical US house price, Utah stands as the sixth most expensive state for buying property. Similar to Colorado, Utah is a popular destination for outdoor and mountain enthusiasts due to its exceptional skiing locations.
The average mortgage payment on a house in Utah accounts for 42.9% of the state's median income.
7. Oregon
Typical house price: $534,956
Image: Portland, Oregon
Oregon, located between two other states on this list, Washington and California, offers a housing market known for its natural beauty and a thriving technology sector. Home prices in Oregon surpass the national median by 25% with average mortgage payments accounting for 43.3% of the state's median income.
8. Nevada
Typical house price: $484,530
Image: Las Vegas, Nevada
Nevada marks the first state on this list with a housing price below half a million dollars. However, mortgage payments in Nevada are comparably high when considering the state's median income. This makes it more challenging for residents to purchase a house.
Las Vegas, known internationally as a popular resort and casino location, and Carson City, the capital of Nevada, contribute significantly to the state's reputation.
9. New Jersey
Typical house price: $480,275
Image: Paramus, New Jersey
A typical home in New Jersey costs $480,275 in 2022, which is 114% of the national median price for a house. New Jersey, located right next to the expensive New York City, offers a potential housing solution for those working in the city. The state's popular seaside resort, Atlantic City, also serves as its gambling center.
10. Idaho
Typical house price: $476,198
Image: Meridian, Idaho
Idaho, the last state on the list of the ten most expensive housing markets in the US, borders several states and Canada. Despite its relatively high housing costs, Idaho remains attractive due to its low cost of living, low population density, and fewer job competitions.
The median income in Idaho is 2% lower than the national average, and mortgage payments account for an average of 43.5% of that income.
10 Cheapest States - Why move there?
Not everyone has the ability or willingness to relocate for a home purchase. However, for retirees, those with location-independent jobs, or anyone seeking adventure, moving to one of the states in this category could save a significant amount of money or provide the opportunity to afford a larger house.
The states on this list offer housing at lower prices due to lower population densities and plentiful undeveloped land, resulting in a high supply of real estate opportunities. While median incomes in these states are usually below the national median, they also boast costs of living well below the national average. In this section, we'll explore the least expensive states in the US for homebuyers and why they may be worth considering as your next destination.
1. West Virginia
Typical house price: $137,286
Image: West Virginia
West Virginia takes the crown for the state with the lowest typical house price. Houses in West Virginia are available at a major discount compared to the rest of the country. The state's rural nature contributes to its lower housing prices, making it an attractive option for those seeking a relaxed pace of life. It's worth noting that wages in West Virginia are typically much lower than in other states.
2. Mississippi
Typical house price: $164,132
Image: Capitol Building in Jackson, Mississippi
Mississippi claims the second spot with affordable housing prices. The state also has a relatively low median income level, which is 33% below the national median. However, average mortgage payments in Mississippi account for 22.7% of the typical resident's income.
High availability of land and a strong musical heritage make Mississippi an appealing choice for those looking for lower-cost housing options.
3. Arkansas
Typical house price: $177,710
Image: Little Rock, Arkansas
Arkansas boasts housing prices that are less than half of the national median. The state's lower typical income level contributes to a reduced demand for expensive housing. Despite lower-paying jobs, Arkansas offers access to outdoor recreational activities and a lower cost of living. Cities like Fayetteville and Little Rock are popular destinations within the state.
4. Oklahoma
Typical house price: $181,574
Image: Oklahoma City, Oklahoma
Oklahoma claims the fourth spot on the list of states with the most affordable housing. The state benefits from a large supply of flat, developable land. Oklahoma's low cost of living and accessible job market make it an attractive choice for those seeking more affordable house prices. The average mortgage payment in Oklahoma is just 21.7% of the state's median income level.
5. Iowa
Typical house price: $192,568
Image: Des Moines, Iowa
Iowa holds a unique position on this list, offering relatively affordable housing prices compared to the national median. The state's median income is actually 1% higher than the national median income, allowing residents to have more disposable income. Iowa's central location in the Midwest, highly ranked universities, and abundance of outdoor activities make it an appealing place to call home.
6. Kentucky
Typical house price: $197,644
Image: Louisville Bridge in Louisville, Kentucky
Kentucky offers affordable housing with typical prices that are less than half of the national median. The state's average mortgage payment accounts for 21% of the median income, making homeownership more attainable. Additionally, Kentucky provides a low property tax, attracting potential homebuyers.
The state also offers a range of benefits, including four distinct seasons, unique regional food and beverages, and various outdoor recreational opportunities. Kentucky is also known for its bourbon whiskey.
7. Alabama
Typical house price: $204,965
Image: Alabama
With a median income lower than the national average, houses in Alabama are priced 52% below the national median. This imbalance makes homeownership relatively easier in Alabama compared to many other places in the US.
Alabama, located in the Southeastern United States, offers sunny weather, a low cost of living, and a relatively young median age. The state's capital city, Montgomery, played a significant role in the Civil Rights Movement, while Huntsville is known for its tech and space industries.
8. Kansas
Typical house price: $206,176
Image: Kansas City, Kansas
Kansas offers an attractive housing market to potential buyers, with typical house prices just over $200,000 and a median income 8% higher than the national median. Kansas' strong economy, which includes agriculture, aerospace, manufacturing, and bioscience, contributes to a favorable job market.
In addition, Kansas offers highly rated universities, a vibrant arts and culture scene, and renowned barbecue. The capital city, Topeka, and major cities like Wichita, Dayton, Cincinnati, and Cleveland are popular places to consider living.
9. Ohio
Typical house price: $213,360
Image: Cincinnati, Ohio
Ohio, ranking as the ninth most affordable state for buying a house, offers a typical house price of $213,360, which is 66% of the national median price. The average mortgage payment made in Ohio is 26.9% of the median income in the state.
Located on the southern shore of Lake Erie in the Midwestern United States, Ohio is recognized as the "Buckeye State." The state offers short commute times, highly ranked schools, and easy access to outdoor activities. Major cities include Columbus, Dayton, Cincinnati, and Cleveland, with Cincinnati being one of the highly rated cities for families.
10. Louisiana
Typical house price: $214,522
Image: New Orleans, Louisiana
Louisiana, known for its distinct culture, claims the tenth spot on the list of cheapest states for housing. The median income in Louisiana is 25% below the national median, while the typical house price is only 50% of the national median. This balance makes homeownership more affordable in Louisiana than in many other states.
Located on the Gulf of Mexico between Texas and Mississippi, Louisiana boasts cities like New Orleans, famous for its French influence, music scene, and yearly Mardi Gras celebration. Other cities worth considering include Baton Rouge, Mandeville, Houma, and Lafayette.
Hidden Housing Gems
Not only does the US have a significant discrepancy in housing prices from state to state, but some states also offer additional incentives to make purchasing a house more attractive. Others have cities that investors consider undervalued. In this section, we'll examine states and cities with unique opportunities for homebuyers.
Alaska
There's no other state quite like Alaska. Physically removed from the contiguous United States, Alaska is home to stunning glaciers and mountains. It's also the only state that will pay you to live there. The Alaskan government offers each resident an annual dividend of about $1,600. This amount varies slightly each year, but the only requirement is having lived in the state for at least a year with the intention of remaining a resident indefinitely. Coupled with lower typical house prices, Alaska becomes an attractive possibility for potential homebuyers.
Maine
Situated in the far northeast of the country, Maine offers typical house prices that are just above the national median. However, buying a house in Maine can be anything but typical for students burdened with school loans.
The Maine Smart Buy Program forgives up to $40,000 in loans for first-time homebuyers. To be eligible for this program, applicants must have a credit score of at least 640, purchase a home between $86,600 and $131,100, not be a current resident of Maine, and use the home as their primary residence for at least five years.
Undervalued Markets
While Texas as a whole boasts housing prices at 73% of the national median, the city of San Antonio offers especially affordable prices. San Antonio's housing prices are noticeably less than in other major cities like Dallas and Houston. The city offers a high quality of life to many.
South Carolina, with housing prices at 63% of the national median, didn't make the list of the ten least expensive states. However, the city of Spartanburg, South Carolina, stands out with a median home value of only $181,571. This area has experienced significant population growth in recent years, indicating a potential rise in prices in the future.
In conclusion, the US housing market exhibits significant variation, with some states offering expensive housing for those seeking specific amenities and competitive employment opportunities, while others provide more affordable options for individuals looking to save money or enjoy a quieter lifestyle.
