Home affordability is a key factor to consider when looking to buy a house. The cost of living, taxes, utilities, and other expenses can vary greatly from one place to another, making it challenging to determine the cheapest state to buy a home. However, fear not! We have conducted an analysis using income data and home prices to identify the top 15 most affordable states in the nation. So, let's dive in and plan your next interstate move!
15 Cheapest States to Buy a House
1. Iowa
Median Home Price: $147,800 Estimated Monthly Mortgage Payment: $702
Iowa takes the top spot as the most affordable state to buy a house. With a median home price of just $147,800, it only takes 10.6 percent of the median household income to afford a home in the Hawkeye State. Whether you prefer the charm of small towns or the conveniences of big cities like Des Moines, Iowa City, and Cedar Rapids, Iowa has plenty to offer.
2. Indiana
Median Home Price: $141,700 Estimated Monthly Mortgage Payment: $673.23
Indiana secures the second spot on our list with a median home price of $141,700. Homes in Indiana require just 11.03 percent of the median income, making it an attractive choice for homebuyers. With major cities like Indianapolis, Fort Wayne, and Bloomington, Indiana offers a diverse range of lifestyle options.
3. Ohio
Median Home Price: $145,700 Estimated Monthly Mortgage Payment: $692.24
Ohio, known for being the birthplace of the Wright Brothers and the Rock and Roll Hall of Fame, is the third most affordable state to buy a house. With a median home price of $145,700, it only takes 11 percent of the average earner's income to afford a home in Ohio. Whether you're a football fan or a history enthusiast, Ohio has something for everyone.
4. Nebraska
Median Home Price: $155,800 Estimated Monthly Mortgage Payment: $740.22
Nebraska, also known as the Cornhusker State, offers affordable housing options with a median home price of $155,800. Homebuyers in Nebraska spend just 11.19 percent of their income on mortgage payments. With its booming corn and cattle industries, Nebraska combines a rural charm with vibrant cities like Omaha and Lincoln.
5. Kansas
Median Home Price: $151,900 Estimated Monthly Mortgage Payment: $721.70
Tied with Nebraska, Kansas offers affordable homes at a median price of $151,900. Homebuyers in Kansas spend 11.19 percent of their income to afford a home. Known as the "breadbasket" of the nation, Kansas boasts beautiful landscapes and cities like Kansas City, Wichita, and Topeka.
6. Mississippi
Median Home Price: $119,000 Estimated Monthly Mortgage Payment: $565.38
Mississippi, known as the Magnolia State, offers slightly less affordable homes compared to Kansas and Nebraska. With a median home price of $119,000, it takes 11.31 percent of the median household income to buy a house in Mississippi. From its Southern charm to its leading catfish production, Mississippi has a lot to offer.
7. West Virginia
Median Home Price: $119,600 Estimated Monthly Mortgage Payment: $568.23
West Virginia, also known as the Mountain State, offers homes at a similar affordability level to Mississippi. With a median home price of $119,600, it takes 11.31 percent of the median household income to buy a house in West Virginia. If you enjoy outdoor activities and breathtaking landscapes, West Virginia is the place to be.
8. Oklahoma
Median Home Price: $136,800 Estimated Monthly Mortgage Payment: $649.95
Oklahoma, the land of deep Native American history, offers affordable homes with a median price of $136,800. Homebuyers in Oklahoma spend around 11.64 percent of their income on mortgage payments. With a rich cultural heritage and cities like Oklahoma City and Tulsa, Oklahoma has something for everyone.
9. Michigan
Median Home Price: $154,900 Estimated Monthly Mortgage Payment: $735.95
Michigan, famous for its Great Lakes and auto production, offers affordable housing with a median home price of $154,900. Homebuyers in Michigan spend only 11.73 percent of their income on mortgage payments. From the scenic beauty of the lakes to the bustling city life in Detroit, Michigan has a lot to offer.
10. Arkansas
Median Home Price: $127,800 Estimated Monthly Mortgage Payment: $607.19
Arkansas, known as "The Land of Opportunity," offers affordable homes with a median price of $127,800. It takes 12 percent of the median household income to afford a home in Arkansas. With its beautiful landscapes and thriving poultry industry, Arkansas is a state with a lot of potential.
11. Alabama
Median Home Price: $142,700 Estimated Monthly Mortgage Payment: $677.99
Alabama takes the eleventh spot on our list of the cheapest states to buy a house. With a median home price of $142,700, it takes 12.2 percent of the average household income to afford a home in Alabama. From its Southern hospitality to its rich history and beautiful plantation homes, Alabama is a state full of charm.
12. North Dakota
Median Home Price: $193,900 Estimated Monthly Mortgage Payment: $921.24
North Dakota offers affordable housing options with a median home price of $193,900. Homebuyers in North Dakota spend just 12.27 percent of the median household income on mortgage payments. With its vast wheat production and stunning landscapes, North Dakota is a hidden gem.
13. Kentucky
Median Home Price: $141,000 Estimated Monthly Mortgage Payment: $669.91
Kentucky, also known as the Bluegrass State, offers affordable homes with a median price of $141,000. Homebuyers in Kentucky spend 12.35 percent of the typical household income on mortgage payments. With its horse racing, bourbon distilleries, and natural beauty, Kentucky has something for everyone.
14. Missouri
Median Home Price: $157,200 Estimated Monthly Mortgage Payment: $746.88
Missouri, known as the Show-Me State, offers affordable homes with a median price of $157,200. Homebuyers in Missouri spend just 12.4 percent of the typical household income on mortgage payments. From its vibrant blues and jazz scenes to its mouth-watering barbecue, Missouri is a state full of cultural richness.
15. South Dakota
Median Home Price: $167,100 Estimated Monthly Mortgage Payment: $793.91
South Dakota, known as the Mount Rushmore State, offers affordable housing options with a median home price of $167,100. Homebuyers in South Dakota spend just 12.62 percent of their income on mortgage payments. From its iconic national monument to its thriving agriculture industry, South Dakota has much to offer.
The 5 Most Expensive States to Buy a House
While we have explored the cheapest states to buy a house, it's also important to highlight the most expensive ones. These states often have higher home prices due to booming populations, supply shortages, and surging demand.
1. Hawaii
Median Home Price: $615,300 Estimated Monthly Mortgage Payment: $2,923.36
Hawaii takes the crown as the least affordable state to buy a house. With a median home price of $615,300, residents in Hawaii spend a staggering 35.15 percent of their income on mortgage payments. From its breathtaking beaches to its island paradise, Hawaii's high housing costs reflect its desirability.
2. California
Median Home Price: $505,000 Estimated Monthly Mortgage Payment: $2,399.32
California, known for its high housing costs, comes in second place on our list. It takes almost 32 percent of the median household income to afford a home in California. With major cities like Los Angeles, San Diego, San Francisco, and Sacramento, California offers a diverse range of opportunities.
3. Oregon
Median Home Price: $312,200 Estimated Monthly Mortgage Payment: $1,483.30
Oregon secures the third spot on our list, with a median home price of $312,200. Homebuyers in Oregon spend 21.92 percent of the median household income on mortgage payments. From its stunning landscapes to its vibrant cities like Portland and Salem, Oregon is a state known for its natural beauty.
4. Washington
Median Home Price: $339,000 Estimated Monthly Mortgage Payment: $1,610.63
Washington, another West Coast state, takes the fourth spot for the most expensive states to buy a home. With a median home price of $339,000, it takes just over 21 percent of the median income to afford a house in Washington. From its lush forests to its bustling cities like Seattle, Washington offers a unique lifestyle.
5. Colorado
Median Home Price: $343,300 Estimated Monthly Mortgage Payment: $1,631.06
Rounding out the list is Colorado, a state known for its scenic beauty and ski towns. With a median home price of $343,300, homebuyers in Colorado spend just over 21 percent of their income on mortgage payments. From Denver to Boulder to Colorado Springs, Colorado offers a mix of outdoor adventures and urban living.
Ready to Buy a House?
Now that you have an overview of the cheapest and most expensive states to buy a house, you can make an informed decision about your next home. Remember, buying a house is a significant financial decision, so it's essential to carefully consider your budget and explore all options available. Whether you're a first-time homebuyer or looking to relocate, we hope this guide helps you on your journey to finding your dream home.
