Since COVID, average house price has been increasing substantially, with some markets seeing 30% increases in home values from 2020 to 2022. According to Redfin, the median home sales price in the US is $398,549 as of the end of 2022.

The rising home prices were most driven by historically low interest rates in 2020 – 2021. COVID also also led to consumers shifting spending to housing and pushed more millennials toward homeownership, according to financial analysis provider Motley Fool. Inflation plus cost of living increases has forced many Americans to search for more affordable towns and cities.

This article will discuss the cheapest states to buy a house, taking into account the median home price, monthly mortgage payment, and other considerations. Provided below is the methodology used for this list.

20 Most Dangerous States in the US

1) Mississippi
2) West Virginia
3) Arkansas
4) Oklahoma
5) Kentucky
6) Alabama
7) Kansas
8) Iowa
9) Ohio
10) Indiana
11) Missouri
12) Louisiana
13) Nebraska
14) Michigan
15) Tennessee
16) South Carolina
17) North Dakota
18) Georgia
19) Texas
20) Wyoming
21) New Mexico
22) Pennsylvania
23) Idaho
24) Wisconsin
25) North Carolina

1) Mississippi

• Median Home Price: $157,828
• Estimated Monthly Mortgage Payment: $565.38

Mississippi is often recognized as one of the most affordable states for housing in the United States. It has a predominantly rural landscape, which contributes to its lower housing costs. The state is known for its rich cultural heritage, particularly in music and literature. Additionally, Mississippi boasts a lower cost of living compared to the national average, although it’s important to consider that this may be reflective of lower average incomes in the state.

2) West Virginia

• Median Home Price: $129,103
• Estimated Monthly Mortgage Payment: $568.23

West Virginia is recognized for its affordable housing market, with some of the lowest home prices in the United States. It is known for its scenic landscapes, including mountains and forests, making it a popular state for outdoor activities like hiking and fishing. The state’s economy historically centered around coal mining, but has been diversifying in recent years. West Virginia also has a rich cultural heritage, particularly in Appalachian music and folklore.

3) Arkansas

• Median Home Price: $169,867
• Estimated Monthly Mortgage Payment: $1,070

Arkansas is known for its natural beauty, including abundant forests, mountains, and lakes, making it a popular destination for outdoor enthusiasts. The state has a diverse economy with strengths in agriculture, manufacturing, and services. Arkansas is also home to major corporations, like Walmart, and offers a lower cost of living compared to many other U.S. states. The housing market in Arkansas is characterized by its affordability, with lower average home prices than many other parts of the country.

4) Oklahoma

• Median Home Price: $171,057
• Estimated Monthly Mortgage Payment: $1,540

Oklahoma is characterized by its diverse landscape, featuring both prairies and forests, which contributes to its appeal for outdoor activities. The state has a strong agricultural base, but it’s also known for its energy industry, particularly oil and natural gas. Oklahoma offers a lower cost of living and affordable housing, which makes it an attractive option for homebuyers. The state is also rich in Native American history and culture, reflected in its many museums and cultural events.

5) Kentucky

6) Alabama

• Median Home Price: $194,695
• Estimated Monthly Mortgage Payment: $818

Alabama is known for its rich history, diverse culture, and warm Southern hospitality. The state’s economy is a mix of traditional industries like agriculture and modern sectors such as automotive manufacturing and aerospace. Alabama offers a relatively low cost of living and affordable housing, making it an appealing option for homebuyers. The state is also famous for its contributions to music, particularly the Muscle Shoals sound, and has a variety of natural attractions from beaches to mountains.

7) Kansas

• Median Home Price: $198,199
• Estimated Monthly Mortgage Payment: $2,795

Kansas, often associated with its vast prairies and agricultural roots, is characterized by its wide-open spaces and friendly communities. The state’s economy is bolstered by agriculture, manufacturing, and aviation industries. Known for its affordability, Kansas offers a cost-effective living environment with a housing market that is accessible to a broad range of homebuyers. The state also boasts a rich historical and cultural heritage, with a blend of urban and rural lifestyles, making it an attractive place for those seeking a balance between city life and the tranquility of the countryside.

8) Iowa

• Median Home Price: $183,418
• Estimated Monthly Mortgage Payment: $2,861

Iowa is renowned for its picturesque landscapes, dominated by rolling hills and vast cornfields, reflecting its strong agricultural heritage. The state offers a high quality of life with a low cost of living and affordable housing, making it an attractive option for homebuyers. Iowa’s economy is diversified, encompassing manufacturing, biotechnology, and finance, in addition to agriculture. The state is also known for its educational institutions and a strong sense of community, with numerous cultural and recreational opportunities available, particularly in its small towns and vibrant cities like Des Moines and Cedar Rapids.

9) Ohio

10) Indiana

• Median Home Price: $231,660
• Estimated Monthly Mortgage Payment: $3,159

Indiana is characterized by its strong economy, particularly in manufacturing, agriculture, and pharmaceuticals. The state is known for its affordable cost of living and housing, making it an attractive option for homebuyers. Indiana also boasts a rich cultural heritage, including significant contributions to music and sports, most notably the Indianapolis 500 race. The state offers a balanced lifestyle with a mix of urban and rural areas, with cities like Indianapolis providing urban amenities while small towns and rural areas offer quieter, community-focused living. You can also find various financial options for rental properties here to help you kick start your investment journey.

11) Missouri

• Median Home Price: $238,055
• Estimated Monthly Mortgage Payment: $1,020

Missouri, located in the Midwestern United States, is known for its diverse geography, which includes the Ozark Mountains, the Missouri River, and fertile plains. The state has a balanced economy with strengths in agriculture, manufacturing, and services, including a growing technology sector in cities like Kansas City and St. Louis. Missouri offers a relatively low cost of living and affordable housing, making it an attractive state for homebuyers. The state also has a rich cultural history, reflected in its music, particularly jazz and blues, and is home to several historic sites and national parks. In this state, real estate investors are guaranteed that they will get double benefits from their investments. You can try fixing and flipping houses here and possibly earn a handsome profit.

12) Louisiana

• Median Home Price: $205,972
• Estimated Monthly Mortgage Payment: $1,133

Louisiana is celebrated for its unique blend of cultures, including Cajun and Creole influences, which are evident in its cuisine, music, and festivals. The state’s economy is diverse, with strong sectors in energy, manufacturing, and tourism. Louisiana is also known for its rich history, with New Orleans being a major cultural hub famous for its jazz music, Mardi Gras celebration, and historic architecture. The state offers a variety of landscapes, from the Gulf Coast beaches to the wetlands of the Mississippi Delta, and its housing market is known for being relatively affordable.

13) Nebraska

Median Home Price: $249,135

Estimated Monthly Mortgage Payment: $1,014

Nebraska is known for its vast agricultural lands and is a major producer of beef, pork, corn, and soybeans. The state’s economy is also supported by manufacturing, freight transport, information technology, and telecommunications. Nebraska offers a high quality of life with a low cost of living, affordable housing, and low unemployment rates. The state’s landscape is characterized by the Great Plains, with scenic views and outdoor recreational opportunities. Nebraska’s cities, like Omaha and Lincoln, are known for their friendly communities and cultural attractions, including museums, parks, and a vibrant music scene.

14) Michigan

• Median Home Price: Approximately $235,361
• Estimated Monthly Mortgage Payment: $1,031

Michigan is renowned for its Great Lakes shoreline, offering extensive recreational opportunities and natural beauty. The state’s economy is anchored by the automotive industry, with Detroit famously known as the “Motor City.” Michigan also has a diverse economy that includes agriculture, manufacturing, and technology. The state offers a range of living environments from bustling urban centers like Detroit and Grand Rapids to serene rural areas. Michigan’s housing market is generally considered affordable, especially in comparison to coastal states. The state is also known for its rich cultural heritage in music, particularly with the Motown sound.

15) Tennessee

• Median Home Price: $311,628
• Estimated Monthly Mortgage Payment: $1,147

Tennessee is well-known for its musical heritage, particularly in genres like country, blues, and rock ‘n’ roll, with cities like Nashville and Memphis being major music hubs. The state’s economy is diversified, including sectors like healthcare, automotive manufacturing, and agriculture. Tennessee offers a blend of urban and rural living, with both bustling cities and scenic rural areas. The state is also known for its natural beauty, including the Great Smoky Mountains. Tennessee’s housing market is relatively affordable, and the state is attractive for its lack of state income tax and overall lower cost of living.

16) South Carolina

• Median Home Price: $288,816
• Estimated Monthly Mortgage Payment: $1,102

South Carolina is known for its rich history, beautiful coastal areas, and vibrant culture. The state’s economy is diverse, with strong sectors in manufacturing, tourism, and agriculture. South Carolina’s coastal cities, like Charleston and Myrtle Beach, are popular for their historic charm and beaches, while the inland areas offer scenic mountains and lakes. The state’s housing market is generally affordable, although prices in coastal areas can be higher. South Carolina is also celebrated for its Southern cuisine, hospitality, and numerous cultural festivals.

17) North Dakota

• Median Home Price: $261,931
• Estimated Monthly Mortgage Payment: $1,052

North Dakota is known for its expansive landscapes, including the Great Plains and the Badlands, which offer unique natural beauty and opportunities for outdoor recreation. The state’s economy is heavily influenced by agriculture and energy, particularly oil extraction from the Bakken shale formation. North Dakota also has a low population density, contributing to a sense of spaciousness and tranquility. The state’s cities, such as Fargo and Bismarck, offer cultural attractions and a small-town feel, while the rural areas are characterized by tight-knit communities. Housing in North Dakota is generally affordable, with a cost of living that is lower than the national average.

18) Georgia

• Median Home Price: $320,091
• Estimated Monthly Mortgage Payment: $1,501

Georgia is known for its diverse landscapes, from the Appalachian Mountains in the north to the coastal plains in the south. The state’s economy is robust, with strong sectors in agriculture, manufacturing, and services, notably in the Atlanta metropolitan area, which is a major economic and cultural hub. Georgia is also famous for its rich history, particularly in cities like Savannah and Athens, and for being a center of the civil rights movement. The state offers a variety of lifestyles, from urban living in Atlanta to more rural and coastal living options. Georgia’s housing market is diverse, with more affordable options in rural areas and higher prices in urban centers and coastal regions.

19) Texas

• Median Home Price: $303,971
• Estimated Monthly Mortgage Payment: $2,547

Texas is known for its large size, diverse landscapes, and booming economy. The state’s economy is one of the largest in the U.S., driven by industries such as energy, technology, agriculture, and manufacturing. Texas is also known for its cultural diversity, with major cities like Houston, Dallas, Austin, and San Antonio each offering unique cultural experiences, from music and food to festivals and arts. The housing market in Texas varies widely, with more affordable options in rural areas and higher prices in major urban centers. Texas is appealing for its lack of state income tax and for its business-friendly environment, attracting both individuals and corporations.

20) Wyoming

• Median Home Price: $339,601
• Estimated Monthly Mortgage Payment: $1,138

Wyoming is known for its vast open spaces, stunning natural scenery, and outdoor recreation opportunities, including national parks like Yellowstone and Grand Teton. The state’s economy is primarily driven by mineral extraction, tourism, and agriculture. Wyoming is one of the least populous states, offering a quiet, rural lifestyle with a strong sense of community. The housing market in Wyoming varies, with more affordable options in rural areas and higher prices in tourist-heavy regions and cities like Jackson. Wyoming is also known for having low taxes, including no state income tax, which can be attractive for residents and businesses.

21) New Mexico

• Median Home Price: $292,822
• Estimated Monthly Mortgage Payment: $1,060

New Mexico is known for its unique blend of Native American and Hispanic cultures, which is reflected in its art, architecture, and cuisine. The state’s landscape is diverse, featuring both desert and mountain terrain, and is famous for its natural beauty, including places like the White Sands National Park. New Mexico’s economy is driven by oil and gas production, tourism, and federal government spending, with several national laboratories and military bases. The housing market in New Mexico offers a range of prices, with more affordable options in rural areas and higher prices in cities like Santa Fe and Albuquerque. The state is also known for its vibrant arts scene and historical sites.

22) Pennsylvania

• Median Home Price: $255,965
• Estimated Monthly Mortgage Payment: $1,071

Pennsylvania is a state rich in American history, known for its significant historical sites, particularly in Philadelphia, the site of major events during the American Revolution. The state has a diverse economy, with strong sectors in manufacturing, finance, and agriculture. Pennsylvania is also known for its varied landscape, from the urban centers of Philadelphia and Pittsburgh to the rural Amish country and the scenic Pocono Mountains. The housing market in Pennsylvania offers a range of options, from historic homes in urban areas to more spacious options in suburban and rural regions. The state also has a strong cultural presence, with numerous museums, theaters, and universities.

23) Idaho

• Median Home Price: $444,451
• Estimated Monthly Mortgage Payment: $1,155

Idaho is renowned for its stunning natural beauty, encompassing rugged mountains, dense forests, and scenic rivers and lakes. Known as the “Gem State” for its rich mineral deposits, Idaho’s economy is diverse, with significant contributions from agriculture, manufacturing, and technology, notably the Boise area’s growing tech sector. Idaho offers a high quality of life with a low cost of living and is popular for outdoor activities like hiking, skiing, and fishing. The state’s housing market varies, with more affordable options in rural areas and higher prices in popular urban and recreational areas like Boise and Coeur d’Alene.

24) Wisconsin

• Median Home Price: $285,037
• Estimated Monthly Mortgage Payment: $1,054

Wisconsin is known for its diverse landscapes, ranging from the Great Lakes shorelines to its northern forests, and is renowned for its dairy production, particularly cheese. The state’s economy is varied, with significant contributions from manufacturing, healthcare, and information technology. Wisconsin’s major cities, like Milwaukee and Madison, offer a blend of cultural experiences, including festivals, museums, and a vibrant culinary scene. The state is also known for its outdoor activities, including fishing, hunting, and skiing, appealing to nature enthusiasts. Wisconsin’s housing market is characterized by a mix of urban and rural properties, generally offering more affordable options compared to coastal states.

25) North Carolina

• Median Home Price: $223,246
• Estimated Monthly Mortgage Payment: $1,122

North Carolina is known for its diverse landscape, which includes the Appalachian Mountains in the west, the Piedmont region in the center, and the Atlantic coast in the east. The state has a growing economy, driven by sectors like technology, finance, and education, with the Research Triangle Park being a major hub for innovation and research. North Carolina’s cities, like Charlotte and Raleigh, are vibrant and growing, offering various cultural and recreational opportunities. The state also has a rich history and is famous for its barbecue and traditional music. North Carolina’s housing market is diverse, with a range of prices from more affordable rural areas to pricier urban and coastal regions.

Methodology

The methodology for ranking the cheapest states to buy a house typically involves analyzing various economic and real estate data. The key factors considered in these rankings usually include:

1. Average Home Value: This is a primary metric, reflecting the median or average price of homes in a state. Lower average home values are a direct indicator of a more affordable housing market.
2. Cost of Living: This includes the overall expenses for basic needs like food, healthcare, transportation, and utilities in a state. States with a lower cost of living are generally more affordable for homebuyers.
3. Property Tax Rates: The rate at which property is taxed in a state can significantly affect the overall cost of owning a home there.
4. Median Household Income: This factor is considered to understand how affordable a home is for the average resident of the state. A lower home price to income ratio indicates better affordability.
5. Homeownership Rates: Higher rates can indicate a more affordable and accessible housing market.
6. Economic Factors: This includes state-specific economic conditions like employment rates and growth prospects, which can influence home prices and affordability.
7. Real Estate Market Trends: This includes looking at the historical and current trends in the real estate market of each state, like the rate of increase or decrease in home values.

Other Considerations

• When searching for the most affordable states to buy a house in 2023, consider not only national average housing prices but also the median household income.
• States with a healthy balance between affordable housing options and higher median incomes provide more opportunities for homebuyers to find their dream homes without stretching their budgets thin.
• Take into account the cost of living index, average home values, and property tax rates to assess overall affordability.
• Whether you prefer urban or rural living, these considerations will help you identify the most affordable regions while enjoying Southern hospitality, natural beauty, and rich history.
• Remember that affordability goes beyond low housing prices; it’s about balancing your budget, income, and the unique characteristics each state offers.
• Understand property tax rates and median incomes in different regions to make an informed decision on homeownership.
• These states combine affordability with the charm of the South, providing access to natural beauty and rich history, making them appealing options for prospective homebuyers.

Summary

Once you’ve identified your ideal state to buy a house, check out SimpleShowing to help with your purchase. We’re the leading home search platform for booking property tours. We currently operate in Florida, Georgia and Texas.