Buying a house is a significant financial decision, and for many people, it is also one of the most important investments of their lifetime. However, the cost of buying a house can vary widely depending on the location, and in the United States, there are significant differences in housing prices from state to state. While some states have an expensive real estate market, others offer more affordable options.
In this article, we will explore the cheapest US states to buy a house and the factors that influence their affordability.
Top 21 Cheapest States to Buy a House
- West Virginia
- Mississippi
- Arkansas
- Oklahoma
- Indiana
- Kentucky
- Ohio
- Kansas
- Iowa
- Alabama
- Missouri
- Michigan
- Tennessee
- Georgia
- South Carolina
- North Carolina
- Louisiana
- Texas
- Nebraska
- South Dakota
- Illinois
1. West Virginia:
| Cost of Living Index | 90.5 |
| Median Household Income | $51,615 |
| Estimated Monthly Mortgage Payment | $989 |
West Virginia is a state located in the Appalachian region of the United States. The state also offers a beautiful natural landscape, with mountains, forests, and rivers providing a peaceful and scenic environment and various outdoor activities, including hiking, fishing, and skiing. The state has a low cost of living, which translates to affordable housing prices. The median home value in West Virginia is $120,000, making it one of the most affordable states to buy a house in the US.
West Virginia has several desirable cities and towns to live in, each with its own unique charm and attractions, Making it a great place to live for families and individuals alike. Charleston, the state’s capital, offers a variety of cultural attractions, including museums, theaters, and art galleries. Morgantown, located in the northern part of the state, is home to West Virginia University and offers a vibrant college-town atmosphere.
Read Also: Best Places to Live in West Virginia
2. Mississippi:
| Cost of Living Index | 83.3 |
| Median Household Income | $46,511 |
| Estimated Monthly Mortgage Payment | $990 |
Mississippi is a southern state known for its warm climate, friendly people, and rich history. The median house cost in Mississippi is $138,000, making it another affordable option for potential homebuyers. Mississippi has several desirable cities and towns to live in, each with its own unique character and attractions. Mississippi offers a low cost of living.
Jackson, the state’s capital, offers a variety of cultural attractions, including museums, art galleries, and music venues. Biloxi, located on the Gulf Coast, is known for its beaches, casinos, seafood, and various outdoor activities, including fishing, hunting, and boating.
Additionally, the state has a diverse range of landscapes, including beaches, forests, and wetlands, providing ample opportunities for outdoor activities.
3. Arkansas:
| Cost of Living Index | 90.6 |
| Median Household Income | $50784 |
| Estimated Monthly Mortgage Payment | $984 |
Arkansas is located in the southern region of the United States and is known for its natural beauty including mountains, lakes, and forests. The median home value in Arkansas is $148,500.
Little Rock, the state’s capital, offers a variety of cultural attractions, including museums, theaters, and art galleries. Fayetteville, located in the northwestern part of the state, is home to the University of Arkansas and offers a vibrant college-town atmosphere.
Arkansas offers a low cost of living, diverse culture, and beautiful landscapes, making it an attractive place to live for families and individuals alike. The state is also known for its outdoor activities, including hiking, fishing, camping, and hunting, providing plenty of opportunities to explore the great outdoors.
4. Oklahoma:
| Cost of Living Index | 85.9 |
| Median Household Income | $60,096 |
| Estimated Monthly Mortgage Payment | $1,005 |
Oklahoma is a state located in the south-central region of the United States, known for its diverse landscapes, including prairies, forests, and mountains. The Average Cost of a median house in Oklahoma is $148,900. Oklahoma City is the capital of Oklahoma and offers a variety of outdoor activities, including fishing, hunting, camping, and a few cultural attractions, including museums, theaters, and sports arenas. Tulsa, located in the northeastern part of the state, is known for its art deco architecture, parks, and festivals.
5. Indiana:
| Cost of Living Index | 89.9 |
| Median Household Income | $70,190 |
| Estimated Monthly Mortgage Payment | $980 |
Indiana is a state located in the midwestern region of the US, known for its rolling hills, lakes, and forests. Indianapolis, the state’s capital, Indiana offers a low cost of living, the average cost of a median house in Indiana is $166,000, making it an affordable option for those looking to buy a house. The state is also known for its thriving economy and high-quality education system, making it an ideal location for those seeking career opportunities and a good education for their children. Bloomington, located in the southern part of the state, is home to Indiana University and offers a vibrant college-town atmosphere.
6. Kentucky:
| Cost of Living Index | 94.9 |
| Median Household Income | $55,629 |
| Estimated Monthly Mortgage Payment | $1,003 |
Kentucky is a southern state known for being one of the cheapest state to buy a house. The state has a low cost of living, and the median home value is $165,000, making it an affordable option for potential homebuyers. Kentucky has several desirable cities and towns to live in, each with its own unique charm and attractions. Louisville, the state’s largest city, offers a variety of cultural attractions, including museums, theaters, and music venues. Lexington, located in the central part of the state, is known for its horse farms, historic sites, and college town atmosphere.
The state is also home to several beautiful natural attractions, including the Mammoth Cave National Park and the Kentucky Lake.
7. Ohio:
| Cost of Living Index | 91.9 |
| Median Household Income | $58,116 |
| Estimated Monthly Mortgage Payment | $1,023 |
Ohio is one of the cheapest states to buy a house in the United State. The Average median home value in Ohio is $169,900, making it an affordable option for those looking to buy a house. Columbus is the Capital of Ohio.
Ohio offers a thriving economy, a high-quality education system, and a strong sense of community, making it an attractive place to live for families and individuals alike. The state also has a diverse range of landscapes, including beaches, forests, and rolling hills, providing ample opportunities for outdoor activities, including museums, theaters, and sports arenas. Cincinnati, located in the southwestern part of the state, is known for its historic architecture, parks, and arts scene.
Read Also: Best Places to Live in Ohio
8. Kansas:
| Cost of Living Index | 87.5 |
| Median Household Income | $64,521 |
| Estimated Monthly Mortgage Payment | $1,060 |
Kansas is a midwestern state with a low cost of living and affordable housing options. The median home value in Kansas is $174,900, making it one of the most affordable states to buy a house. The state’s capital, Topeka, has an average home price of $122,300, while Kansas City’s average home price is around $168,000. The state has a stable economy, low unemployment rates, and friendly people, making it an ideal place to live for those who want to enjoy a comfortable lifestyle without breaking the bank. The state is also known for its delicious cuisine, including BBQ and steak, and has a rich history, including the famous Wild West era.
Read Also: Best Places To Live In Kansas
9. Iowa:
| Cost of Living Index | 89.2 |
| Median Household Income | $72,429 |
| Estimated Monthly Mortgage Payment | $970 |
Iowa is a state located in the midwestern region of the United States. The median home value in Iowa is around $185,000, which is slightly lower than in Kansas. Iowa offers a low cost of living, a strong sense of community, and a beautiful natural landscape, including rolling hills, lakes, and prairies.
The state has a diverse range of housing options, including apartments, condos, and single-family homes. Des Moines, the state’s capital, has an average home price of $167,000, while Cedar Rapids’ average home price is around $157,000. The state’s low crime rate, excellent schools, and job opportunities make it a desirable place to live. The state is also known for its friendly people, excellent education system, and delicious food, including sweet corn and pork tenderloin sandwiches.
10. Alabama:
| Cost of Living Index | 88.1 |
| Median Household Income | $56,929 |
| Estimated Monthly Mortgage Payment | $1,060 |
Alabama is a southern state with a low cost of living, making it an excellent place to buy a home for those on a budget. The Average house cost in Alabama is $195,000, making it an affordable option for those looking to buy a house. The state has a diverse range of housing options with beautiful natural landscapes, ranging from apartments to single-family homes.
Birmingham is the largest city in Alabama, and has an average home price of $147,000, while Huntsville’s average home price is around $196,000. The state’s mild climate, beautiful scenery, and friendly people make it an excellent place to call home. The state has beautiful beaches, mountains, and forests and is also known for its excellent food, including fried chicken and barbecue, and its rich history, including the civil rights movement.
11. Missouri:
| Cost of Living Index | 89.1 |
| Median Household Income | $57,290 |
| Estimated Monthly Mortgage Payment | $1,020 |
Missouri is a midwestern state known as one of the most affordable states to buy a house in the US. The median home value in Missouri is $185,000, which is slightly higher than in Kansas and Iowa. The state has a diverse range of housing options, including apartments, condos, and single-family homes. The state’s largest city, Kansas City, has an average home price of $196,000, while St. Louis’ average home price is around $174,000.
Missouri offers a low cost of living, a thriving economy, and a diverse range of landscapes, including rolling hills, lakes, and forests. The state is also home to several popular attractions, including the Gateway Arch and the Mark Twain Boyhood Home and Museum.
12. Michigan:
| Cost of Living Index | 92.2 |
| Median Household Income | $59,234 |
| Estimated Monthly Mortgage Payment | $1,031 |
Michigan is a state located in the Great Lakes region of the United States. The Average median house value in Michigan is $195,000, making it an affordable option for those looking to buy a house.
Detroit, the state’s largest city, has an average home price of $42,000, while Grand Rapids’ average home price is around $229,000. The state has a diverse range of housing options, including apartments, condos, and single-family homes. Michigan is also known for its excellent education system, job opportunities, and beautiful scenery. Several popular attractions, including the Mackinac Island and the Henry Ford Museum.
13. Tennessee:
| Cost of Living Index | 90.2 |
| Median Household Income | $62,166 |
| Estimated Monthly Mortgage Payment | $1,147 |
Tennessee is a state located in the southeastern part of the United States. The median home value in Tennessee is around $221,000, making it one of the cheapest state to buy a house. The state has a diverse range of housing options, including apartments, condos, and single-family homes. Nashville, the state’s capital, has an average home price of $345,000, while Memphis’ average home price is around $136,000. The state’s low cost of living, friendly people, and mild climate make it an excellent place to call home. Tennessee offers a low cost of living, a thriving music and arts scene, and a diverse range of landscapes, including mountains, rivers, and forests. The state is also known for its delicious cuisine, including hot chicken and barbecue.
Read Also: Best Places To Live In Tennessee
14. Georgia:
| Cost of Living Index | 88.6 |
| Median Household Income | $61,497 |
| Estimated Monthly Mortgage Payment | $1,100 |
Georgia is a state located in the southeastern part of the United States, and is known for its rich history, culture, and beautiful landscapes. The median home value in Georgia is around $245,000, making it an affordable option for those looking to buy a house. Atlanta, the state’s largest city, has an average home price of $379,000, while Augusta’s average home price is around $140,000. The state’s low cost of living, excellent schools, and job opportunities make it a desirable place to live. The state is also known for its excellent education system, delicious cuisine, and several popular attractions, including the Georgia Aquarium and the Martin Luther King Jr. National Historic Site.
Read Also: Best Cities To Live In Georgia
15. South Carolina:
| Cost of Living Index | 94.3 |
| Median Household Income | $62,542 |
| Estimated Monthly Mortgage Payment | $1,102 |
South Carolina is a state known for its beautiful beaches, rich history, and southern hospitality. The average median home value in South Carolina is just over $243,000, making it an affordable option for those looking to buy a house. South Carolina offers a low cost of living, a strong sense of community, and a diverse range of landscapes, including beaches, mountains, and forests.
South Carolina has many desirable cities and towns to live in, each with its own unique culture and personality. Charleston, located on the coast, is known for its charming architecture, historic sites, and vibrant food scene. Greenville, located in the Upstate region, is known for its downtown area, which features many shops, restaurants, and outdoor events. Columbia, the state’s capital, offers a variety of cultural attractions, including museums, theaters, and festivals.
16. North Carolina:
| Cost of Living Index | 95.7 |
| Median Household Income | $60,516 |
| Estimated Monthly Mortgage Payment | $1,122 |
North Carolina is another state located in the southeastern region of the US, known for its beautiful beaches, mountains, and southern charm. The median home value in North Carolina is around $279,000, making it slightly more expensive than its neighboring state of South Carolina. However, it is still considered one of the cheapest states to buy a house in the US.
North Carolina offers a diverse range of cities and towns to live in, each with its own unique character and attractions. Some of the most famous celebrities call North Carolina their home. Raleigh, the state’s capital, is known for its high-tech research and development industries, while Asheville, located in the western part of the state, is known for its vibrant arts scene and proximity to the Blue Ridge Mountains.
North Carolina is also home to many excellent colleges and universities, including Duke University and the University of North Carolina at Chapel Hill. The state offers a strong job market, particularly in the fields of healthcare, finance, and technology.
17. Louisiana:
| Cost of Living Index | 93.6 |
| Median Household Income | $50,800 |
| Estimated Monthly Mortgage Payment | $1,073 |
Louisiana is a state located in the southern region of the United States, known for its rich history, culture, and delicious cuisine. The median home value in Louisiana is around $186,000, making it one of the cheapest state to buy a house.
New Orleans is the largest city in Louisiana, and has an average home price of $307,000, while Baton Rouge’s average home price is around $200,000. The state’s low cost of living, unique culture, and excellent food make it an attractive place to call home. The state is also home to several popular attractions, including the French Quarter and Mardi Gras.
18. Texas:
| Cost of Living Index | 92.5 |
| Median Household Income | $63,826 |
| Estimated Monthly Mortgage Payment | $1,137 |
Texas is a state located in the southern region of the United States, known for its vast size, diverse landscape, and a strong economy. The median home value in Texas is around $240,000. The state has a diverse range of housing options, including apartments, condos, and single-family homes. Houston, the state’s largest city, has an average home price of $280,000, while San Antonio’s average home price is around $222,000.
Texas offers a low cost of living, a booming economy that makes it a popular place to live, and a diverse range of landscapes, including beaches, mountains, and deserts. The state is also known for its delicious cuisine, including Tex-Mex and barbecue.
19. Nebraska:
| Cost of Living Index | 91.9 |
| Median Household Income | $78,109 |
| Estimated Monthly Mortgage Payment | $1,014 |
Nebraska is a state located in the Great Plains region of the United States, known for its flat prairies, rolling hills, and agricultural landscape. The average median house cost in Nebraska is $194,000, making it one of the cheapest states to buy a house.
The state has a diverse range of housing options, including apartments, condos, and single-family homes. Omaha, the state’s largest city, has an average home price of $236,000, while Lincoln’s average home price is around $225,000.
Nebraska offers a low cost of living, a strong sense of community, and a thriving economy. The state is also home to several popular attractions, including the Henry Doorly Zoo and the Strategic Air Command and Aerospace Museum.
20. South Dakota:
| Cost of Living Index | 94.5 |
| Median Household Income | $73,893 |
| Estimated Monthly Mortgage Payment | $1,042 |
South Dakota is a state located in the Midwestern part of the United States. The average median home value in South Dakota is just around $237,000, making it one of the cheapest state to buy a house. South Dakota offers a low cost of living, a strong sense of community, and a diverse range of landscapes, including the Black Hills and Badlands National Park. The state is also home to several popular attractions, including Mount Rushmore and the Crazy Horse Memorial. The state has a diverse range of housing options, including apartments, condos, and single-family homes. Sioux Falls, the state’s largest city, has an average home price of $240,000, while Rapid City’s average home price is around $254,000. The state’s low cost of living, natural beauty, and friendly people make it an attractive place to live.
21. Illinois:
| Cost of Living Index | 92.6 |
| Median Household Income | $68,428 |
| Estimated Monthly Mortgage Payment | $1,130 |
Illinois is a state located in the Midwestern region of the United States, known for its bustling cities, thriving economy, and agricultural landscape. The median home value in Illinois is over $235,000, making it an affordable option for those looking to buy a house. Chicago, the state’s largest city, has an average home price of $351,000, while Springfield’s average home price is around $137,000. The state’s excellent schools, diverse culture, and job opportunities make it an attractive place to live. Illinois offers a low cost of living, a strong sense of community, and a diverse range of landscapes, including rolling hills, prairies, and forests. The state is also home to several popular attractions, including the Willis Tower and Navy Pier.
Read Also: Best Places to Live In Illinois
Tips for Buying the Cheapest Houses in the US
If you are considering buying a home in one of the cheapest states, here are some tips to help you get started:
- Do your Research: Research the state and city you plan to move to and ensure it has everything you need, including job opportunities, good schools, and amenities.
- Get Pre-Approved: Getting pre-approved for a mortgage can give you a better idea of how much house you can afford and make the buying process smoother.
- Consider the Location: Even in the cheapest states, some cities may be more expensive than others. Consider the location carefully to ensure you get the best value for your money.
- Hire a Local Real Estate Agent: A local real estate agent can help you navigate the buying process and provide valuable insight into the local market.
- Don’t Rush: Take your time when searching for a home and don’t rush into a purchase. Be patient and wait for the right opportunity to come along.
Why are these States the Cheapest?
There are several reasons why these states are considered the cheapest to buy a house in:
Lower Cost of Living
The cost of living in these states is generally lower compared to other states. This means that not only are houses cheaper, but other expenses like groceries, transportation, and healthcare are also more affordable.
Lower Property Taxes
States like West Virginia, Mississippi, and Arkansas have lower property tax rates than other states. This means that homeowners in these states pay less in property taxes, which can significantly reduce the overall cost of owning a home.
Affordable Homes
The cost of homes in these states is generally lower due to various factors, including lower demand, lower wages, and less economic growth. This means that potential homebuyers can purchase a home for less money compared to other states.