The cheapest state to buy a house in the US is West Virginia, where median home prices are $147,000. Other affordable states include Arkansas, Mississippi, and Oklahoma.
With the national median sale price of homes in the U.S hovering around $358,500, a 9.2% increase from last year, the cost of houses varies from state to state. In this article, we’ll look at some of the cheapest states to buy a house in the U.S in 2023 using income data and home prices.
12 Cheapest States to Buy a House in 2023
- West Virginia
- Mississippi
- Arkansas
- Oklahoma
- Iowa
- Kentucky
- Kansas
- Alabama
- Ohio
- Indiana
- Missouri
- Michigan
1. West Virginia: $147,000
Average effective property tax rate: 0.57%
West Virginia is the cheapest state to buy a house in as it has the lowest median list prices for homes as well as the cheapest sales price per square foot. Property taxes in the state are also some of the lowest in America.Popularly known as the Mountain State, West Virginia is known for its low cost of living and breathtaking natural scenery. With a state population of around 1.3 million residents, West Virginia is an excellent home buying location if you’re a lover of nature or looking to start a career in the coal industry.
2. Mississippi: $173,650
Average effective property tax rate: 0.78%
The second cheapest state to buy a house is Mississippi. The state is known for its lenient building regulations and a growing number of sustainable off-grid homes. With around 3 million residents, Mississippi is one of the most affordable states to buy a house. The cost ofliving in Mississippi is 15% lower than the national average. And with around 35,000 farms covering the state’s 10.4 million acres, agriculture is the top industry.
3. Arkansas: $190,500
Average effective property tax rate: 0.61%
Arkansas is another of the cheapest states to buy a house in 2023. It takes just 12% of the median household income to buy a house in the state. Arkansas is famous for its hot springs, acres of lakes, and booming poultry industry. The state has over 3 million people, and besides affordable real estate, offers residents a friendly atmosphere and a warm climate.
4. Oklahoma: $193,700
Average effective property tax rate: 0.89%
Known for its deep Native American history, Oklahoma is one of the cheapest states to buy a house. If you’re a fan of football, mountains, and outdoor scenery, then Oklahoma may be the best place for you. And with a population of about 4 million people, the cost of living in Oklahoma is about 15% lower than the national average.
5. Iowa: $200,850
Average effective property tax rate: 1.53%
Nicknamed the Hawkeye State, Iowa is known as the United States' leading producer of corn. Also famous for its pork production, there are about 12 million pigs in the state and just 3 million people – meaning the hogs outnumber the humans 4 to 1. Housing in Iowa is quite affordable, and the median listing price is just $200,850. Their property taxes are relatively high at about 1.53%. But the overall cost of living is about 16% cheaper than the US as a whole, making it affordable for most residents.
6. Kentucky: $207,600
Average effective property tax rate: 0.85%
Also referred to as the Bluegrass State by its residents, Kentucky is known for its horse racing, tobacco farming, fried chicken, and coal mining. With around 4.5 million residents, some of the biggest cities in the state are Louisville, Lexington, and Frankfort. If you’re looking for a state that offers both urban and rural appeal, then Kentucky should be at the top of your home buying list.
7. Kansas: $215,770
Average effective property tax rate: 1.37%
Kansas is a landlocked state located in the heart of the Midwest. The number one state for wheat production, Kansas is known for its wide-open plains and prairies. All that open land makes housing quite affordable, and it features a median listing price of $215,770. With a population of just under 3 million, Kansas features several major cities, including Wichita, Topeka, and Kansas City (at least the portion within the state lines). Agriculture, meatpacking, and dairy are the primary industries in Kansas, and the state produces about 20% of all wheat grown in the US.
8. Alabama: $218,420
Average effective property tax rate: 0.40%
Alabama is also one of the cheapest states to buy a house in 2023. Known as the Cotton State, Alabama’s cost of living is about 15% lower than the national average. And with a population of just over 4.9 million, Alabama is the biggest employer in the healthcare industry.
9. Ohio: $218,975
Average effective property tax rate: 1.48%
Known as the Buckeye State or the birthplace of aviation, Ohio is the gateway to the Midwest. It has five cities with over 150,000 and features ample job opportunities in financial services, manufacturing, and agriculture. Housing in Ohio is much cheaper than in nearby states like Pennsylvania and New York. However, Ohio also features higher property taxes than many states on this list. But it's still considerably cheaper than the national average, and housing per square foot is among the most affordable in the country.
10. Indiana: $228,175
Average effective property tax rate: 0.84%
One of the leading Midwest states, Indiana is home to the highest number of the nation’s interstate highway systems per square mile than any other state in the nation. Home to around 7 million residents, Indiana boasts booming manufacturing, agriculture, and healthcare industries. Currently, the cost of living in Indiana is 10% lower than the national average.
11. Missouri: $237,200
Average effective property tax rate: 0.95%
Known for its blues and jazz industry and its world-famous barbecue. Missouri is one of the most affordable states to buy a house in the U.S. One of the upsides to buying a house in Missouri is the high appreciation rates and affordable property tax rates.
12. Michigan: $237,650
Average effective property tax rate: 1.64%
Surrounded by the Great Lakes, Michigan features the longest freshwater coastline in the US at 3,288 miles long. Split into two sections by Lake Michigan, the northern landmass known as the upper peninsula is almost entirely covered by forestland. Michigan features a diverse economy dominated by the automobile industry in the early 20th century. Today, it's one of the cheapest places in the country in terms of housing and features a median list price of $237,650 and a price per square foot of just $132.
Cheapest State to Buy a House Bottom Line
It is no longer news that every state comes with its home affordability rate. However, before purchasing a home in any state, you should do adequate research on the average mortgage rates, the economy, and other societal factors. Speak to local real estate agents about the ease of buying a home in your desired state and the various hoops you may face.
FAQs
Mississippi
It also has one of the lowest average housing costs in the US and the lowest average transportation costs. On the downside, Mississippi suffers the highest poverty rate in the US, with a poor healthcare system and quality of education.
What US state has the cheapest housing? ›
Mississippi
It also has one of the lowest average housing costs in the US and the lowest average transportation costs. On the downside, Mississippi suffers the highest poverty rate in the US, with a poor healthcare system and quality of education.
What state has the cheapest houses 2023? ›
Mississippi
Mississippi, “The Magnolia State,” is the birthplace of Elvis Presley and the delta blues. It's also the cheapest state to buy a house in 2023. As of 2020, the total state population was 2,961,279, making it the 32nd most populated state. The most populated city is Jackson, with 153,701 residents.
Where is the cheapest place to buy a house in the states? ›
That said, the cheapest states to buy real estate in are often those experiencing economic or population declines. Rust Belt states like Pennsylvania, Ohio, Michigan and Indiana all have markets with affordable housing, as do many Southern states, like Alabama and Mississippi.
What is the best state to live in to buy a house? ›
10 best states for first-time homebuyers plus key factors
Rank | State | 1-year home price change: 2021–2022 |
---|
1 | Pennsylvania | 4.1% |
2 | North Carolina | 10.1% |
3 | Utah | 5.8% |
4 | Kentucky | 7.2% |
6 more rowsMar 2, 2023
What is the cheapest and safest state to live in? ›
Take a look at the 10 cheapest states to live in for 2022.
- Mississippi. Coming in as the cheapest state to live in in the United States is Mississippi with a cost of living index score of 83.3. ...
- Kansas. ...
- Alabama. ...
- Oklahoma. ...
- Georgia. ...
- Tennessee. ...
- Missouri. ...
- Iowa.
What city has the lowest cost of living? ›
In its report, Niche also ranked the cheapest places to live in the U.S. At the top of the list this year is Brownsville, Texas. Brownsville has been steadily rising in Niche's Lowest Cost of Living ranking over the past few years, placing number six in 2021, number three in 2022 and finally, number one in 2023.
Which state has the highest cost of living? ›
1. Hawaii. Hawaii is truly a paradise, but it is also the most expensive state in America to live in. The cost of living in Hawaii overall is 86% higher than the national average, and the cost of housing in Hawaii is a jaw-dropping 207% above the national average.
Where to buy cheap houses in USA? ›
10 Cheapest Housing Markets to Buy a House in the US
- West Virginia. With a Zillow Home Value Index of $146,578, West Virginia is the most affordable state to buy a house in the US. ...
- Mississippi. ...
- Arkansas. ...
- Louisiana. ...
- Oklahoma. ...
- Kentucky. ...
- Iowa. ...
- Ohio.
Where can I get the most house for my money? ›
Buying a home in these 7 states gives you the most bang for your...
- Indiana.
- Mississippi. ...
- Arkansas. ...
- Ohio. ...
- West Virginia. ...
- Alabama. Alabama's median home price of $92 per square foot translates into a 3,256-square-foot home for $300,000. ...
- Oklahoma. In Oklahoma, $300,000 will buy you a 3,175-square foot home, on average. ...
Arkansas. Arkansas is home to some of the lowest-priced lands in the country, with an average price of just $1,071 per acre. This is significantly cheaper than the national average of $7,000 per acre.
Where is the cheapest land in America? ›
10 of the Cheapest Places to Buy Land in the U.S.
- Hot Springs, Arkansas. Photo: istockphoto.com. ...
- Mohave County, Arizona. Photo: istockphoto.com. ...
- Kanosh, Utah. Photo: Flickr.com via Garrett. ...
- Valencia County, New Mexico. Photo: istockphoto.com. ...
- Fort Hanco*ck, Texas. ...
- Royalton, Kentucky. ...
- Edwards, Missouri. ...
- Sun Valley, Arizona.
Why are homes cheap in Texas? ›
More Relaxed Codes & Regulations
A few states across the country have relaxed building codes, and Texas is one of them. Endless permits and red tape do not hold up developers and construction crews. Consequently, homes are built faster, increasing the supply and keeping overall home prices more affordable.
What state is expensive to buy a house? ›
Hawaii. Hawaii is known for its beautiful beaches, warm climate, and breathtaking scenery. However, it is also the most expensive state to buy a house, with a Zillow Home Value Index of $834,582.
What is the best state in 2023? ›
The latest edition of the Best States rankings project finds a new No. 1 and a strong showing from the West and Midwest in the top 10. Utah has taken the No.
What is the cheapest state to live in right now? ›
The three cheapest states to move to in terms of housing costs are: West Virginia, with an average price of $123,000; Mississippi, with an average price of $125,000; and Arkansas, with an average house price of 133,600.
What is the cheapest state to live in by yourself? ›
Albuquerque, New Mexico, ranks as the most affordable city in the country for single renters. Studio apartments in Albuquerque go for a median price of $700, and the average single person would only need to spend 15.33% of their income to afford one.
Is Florida a cheap state to live in? ›
Is it expensive to live in Florida? Though the state has long had a reputation for being an inexpensive place to live, housing costs are high. Rents and sale prices are both well above national averages. However, the overall cost of living in the state is about on par with the national average.
Where in Florida is the cheapest place to live? ›
Most Affordable Places to Live in Florida
- Cape Coral.
- Dunedin.
- Fort Walton Beach.
- Lakeland.
- Vero Beach.
How to live cheaply? ›
Here are 15 frugal tips to look like you're living large without overspending.
- Eliminate monthly subscriptions.
- Shop for new insurance.
- Reduce prescription costs.
- Buy used items.
- Rent, don't own.
- Purchase at the right time.
- Buy high-quality products.
- Enlist your friends.
Let's look at what the data is saying about the highest cost of living states, according to World Population Review.
- Hawaii. Tops on the list lands Hawaii, with a COL index of 193.3. ...
- New York. ...
- California. ...
- Massachusetts. ...
- Oregon.
Where does Florida rank in cost of living? ›
Florida residents enjoy the 32nd-lowest cost of living in the United States, per MERIC data gathered in 2022.
Is it expensive to live in Tennessee? ›
The cost of living in Tennessee is 10% lower than the national average. Housing is 20% lower than the national average, while utilities are 6% lower. When it comes to basic necessities such as food and clothing, groceries are around 6% lower than in the rest of the country, while clothing costs 6% lower.
What city has the cheapest houses in us? ›
1. Detroit, Michigan. The Motor City tops the list of most affordable places to buy a home.
What is the cheapest house to build? ›
Ranch Homes
A home with a simple and concise layout is the cheapest type of house to build. Ranch homes are typically single-story structures with attached garages. They're easy to find construction plans for and highly customizable, so you can find a home that fits your needs and budget.
Where is the best place to own land? ›
The Top 9 Best States to Buy Land in 2021
- Arkansas. ...
- Tennessee. ...
- Utah. ...
- Arizona. ...
- Oregon. ...
- West Virginia. Enjoy the endless mountains and land for sale in West Virginia. ...
- Kentucky. Land in Kentucky is its most valuable asset. ...
- Texas. If you are looking to create a farm or a ranch, Texas is the state you should focus on.
What house can I buy on $100 K? ›
Your budget and financial situation will determine how much you can afford on a 100k salary, but in most cases, you'll likely qualify for a home worth between $350,000 to $500,000.
Where is the best place to buy house in USA? ›
Top 10 Places To Buy A House In The U.S.
- Tampa, Florida. Tampa, Florida, makes the top of our list for several reasons. ...
- Atlanta, Georgia. Atlanta, Georgia, has a lot in common with Tampa Bay. ...
- Jacksonville, Florida. ...
- Austin, Texas. ...
- Raleigh, North Carolina. ...
- Charlotte, North Carolina. ...
- San Antonio, Texas. ...
- Dallas, Texas.
What property makes the most money? ›
What Types of Commercial Properties Are the Most Profitable? High-Tenant Properties – Typically, properties with a high number of tenants will give the best return on investment. These properties include RVs, self-storage, apartment complexes, and office spaces.
What state is it easiest to live off the land? ›
Montana is a great state for homesteaders looking for wide-open spaces and plenty of natural resources. With its diverse climate and terrain, it's easy to find the perfect spot to start a homestead. Those looking to do off grid living in Montana can also benefit from the state's low cost of living and low taxes.
“Alaska is the best state to settle in if you want complete isolation and don't mind the long winter months. The upside is that the land is cheap, but you'll pay for it with a short growing season. Another benefit is that Alaska has the lowest taxes in the United States.
What is the best state to own land in? ›
Top 10 States to Buy Land in the USA in 2023
- Oregon.
- Arizona.
- Florida.
- Utah.
- Texas.
- Nevada.
- Idaho.
- Arkansas.
Where is the best place to homestead in the US? ›
10 Best States For Homesteading 2023
- Tennessee. Rural Tennessee is already a popular location for sustainable living enthusiasts, with a fantastic harvesting season of around 9 months of the year, there are low property taxes and costs.
- Idaho. ...
- Oregon. ...
- Maine. ...
- Michigan. ...
- Connecticut. ...
- Montana. ...
- Alaska. ...
What states have the lowest price per acre? ›
InMyArea.com performed a study that took a look at the median prices per acre in 2021 and found that Arizona had the cheapest median cost per acre, at $4,164. The data includes the price of land with existing homes and the cost of land designated as a homesite was also included so that you can have some comparison.
What areas in US have free land for sale? ›
If you want to find free land, then the top states that offer free land include Kansas, Minnesota, and Nebraska. Some restrictions typically apply, such as building a home within a certain time frame or using the land for agricultural purposes.
Which city has cheap houses in Texas? ›
Here are the seven best places to live in Texas for an affordable price!
- Brownsville.
- El Paso.
- Galveston.
- Harlingen.
- Lewisville.
- McAllen.
- Temple.
What is the safest place to live in Texas? ›
Chapters
City | Population | UpHomes Safety Rank |
---|
Prosper | 28,825 | 1 |
Flower Mound | 75,050 | 2 |
Leander | 57,696 | 3 |
Wylie | 55,426 | 4 |
11 more rowsMay 23, 2023
Is it cheaper to live in California or Texas? ›
Cost of Living in California vs. Texas. In Texas, you can get a lot more bang for your buck. A MyMove study evaluating the cost of living in the United States in 2022 shows that California has a cost index of 151.7, while Texas has a cost index of only 91.5.
What is the #1 best state? ›
Utah takes No. 1 in rankings that measure health care, education and economy. WASHINGTON, May 2, 2023 /PRNewswire/ -- Utah is the Best State in the country, according to the 2023 Best States rankings.
Where is the best place to live 20 years from now? ›
Gallup analysis shows that the West North Central, Mountain, and Pacific regions are likely to be the best areas to live in 20 years, based on the strong economic, health, and community foundations they are building today.
A new book examining the forces shaping the future of global migration forecasts Michigan as the best place in the world to live in 2050. How can the world collaborate to minimize temperature rise to save as many lives as possible?
What state has the most unaffordable housing? ›
According to worldpopulationreview.com, Hawaii is the most expensive state to live in, with its housing costing three times the national average. New York and California rank as the second and third most expensive states in which to live, respectively.
What state has the cheapest houses per square foot? ›
West Virginia is the cheapest state to buy a house in as it has the lowest median list prices for homes as well as the cheapest sales price per square foot. Property taxes in the state are also some of the lowest in America.
What is the most expensive state to live in 2023? ›
Hawaii is the most expensive state to live in, with a cost of living index of 184. Massachusetts is ranked second, with a cost of living index of 149.7, followed by California at 137.6, and New York at 134.5.
Where is everyone moving to in 2023? ›
Based on migration data from the U.S. Census Bureau, Americans are moving to Austin, Texas; Raleigh, North Carolina; Orlando, Florida; Dallas, Texas; and Phoenix, Arizona. The most moved-to cities are based on percentage increases in population since 2010.
What is the cheapest state to retire in 2023? ›
Rather, Alabama is the most affordable state to retire in, according to WalletHub's "2023 Best States to Retire." The analysis compared all 50 states across three key categories: health care, quality of life and affordability.
Where is the most affordable housing in the United States? ›
Here's a look at the most affordable major cities in the country for housing.
- Memphis, Tennessee. Median monthly housing cost: $967.
- Milwaukee, Wisconsin. Median monthly housing cost: $965. ...
- Tucson, Arizona.
- Indianapolis, Indiana.
- Oklahoma City, Oklahoma.
- Louisville, Kentucky.
- Albuquerque, New Mexico.
- Kansas City, Missouri.
Is Texas the cheapest state to live in? ›
Is Texas expensive to live in? No, Texas is veyr affordable relative to other states in the U.S. In fact, the average cost of living there is 8% lower than the national average, according to a Cost of Living Index.
Where is the cheapest acre in America? ›
10 of the Cheapest Places to Buy Land in the U.S.
- Mohave County, Arizona. ...
- Kanosh, Utah. ...
- Valencia County, New Mexico. ...
- Fort Hanco*ck, Texas. ...
- Royalton, Kentucky. Photo: istockphoto.com. ...
- Edwards, Missouri. Photo: istockphoto.com. ...
- Sun Valley, Arizona. Photo: istockphoto.com. ...
- Deming, New Mexico. Photo: istockphoto.com.
What part of Texas has the cheapest houses? ›
- Breckenridge. The cheapest place to live in Texas is Breckenridge. ...
- Beaumont. The second cheapest city in Texas is Beaumont. ...
- Wichita Falls. Located in north-central Texas, Wichita Falls is a cheap destination for nature lovers. ...
- Harlingen. ...
- Texarkana. ...
- Abilene. ...
- Amarillo. ...
- Odessa.
With that in mind, a good salary in Texas is between $55K and $73K. To live comfortably anywhere, it helps to track your spending and saving with SoFi Insights. The free budget app also provides credit score monitoring.
Is Texas or Florida more affordable? ›
Overall, living in Texas is more affordable than living in Florida.