Investing / Real Estate
9 min Read
By John Csiszar
The three-bedroom house is something of a standard for many American families. You’ve got room for the adults, for a few kids — or if you don’t have little ones, use the extra bedrooms for guest space, a home office, a mini-gym or a hobby room.
And while the function of three-bedroom homes is standard, too, from one location to the next, the price certainly isn’t. Depending on the state you call home, the typical three-bedroom house can range from the mid- to high-$100,000s to about $900,000. That’s why GOBankingRates compiled a study to track the affordability of the three-bedroom house across America.
The states are ranked based on the average monthly mortgage payment for three-bedroom homes — from least to most expensive. For additional context, GOBankingRates included a variety of other important factors that affect overall affordability, like the average size of a 20% down payment, the average effective property tax rate and average annual property taxes.
The end result is a clearer picture of which states offer a friendly market for those shopping for a modest family home and which will price most people out of the market before they start looking.
West Virginia
- Average 3-bedroom home value: $163,788
- 20% down payment: $32,758
- Average effective state property tax: 0.55%
- Annual property tax: $901
- Monthly mortgage payment: $909
- Annual mortgage cost: $10,912
Mississippi
- Average 3-bedroom home value: $186,361
- 20% down payment: $37,272
- Average effective state property tax: 0.65%
- Annual property tax: $1,211
- Monthly mortgage payment: $1,050
- Annual mortgage cost: $12,602
Oklahoma
- Average 3-bedroom home value: $197,487
- 20% down payment: $39,497
- Average effective state property tax: 0.88%
- Annual property tax: $1,738
- Monthly mortgage payment: $1,151
- Annual mortgage cost: $13,809
Louisiana
- Average 3-bedroom home value: $210,317
- 20% down payment: $42,063
- Average effective state property tax: 0.54%
- Annual property tax: $1,136
- Monthly mortgage payment: $1,166
- Annual mortgage cost: $13,991
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Alabama
- Average 3-bedroom home value: $218,144
- 20% down payment: $43,629
- Average effective state property tax: 0.39%
- Annual property tax: $851
- Monthly mortgage payment: $1,182
- Annual mortgage cost: $14,184
Arkansas
- Average 3-bedroom home value: $221,150
- 20% down payment: $44,230
- Average effective state property tax: 0.64%
- Annual property tax: $1,415
- Monthly mortgage payment: $1,244
- Annual mortgage cost: $14,932
Kentucky
- Average 3-bedroom home value: $216,901
- 20% down payment: $43,380
- Average effective state property tax: 0.82%
- Annual property tax: $1,779
- Monthly mortgage payment: $1,253
- Annual mortgage cost: $15,036
Indiana
- Average 3-bedroom home value: $223,599
- 20% down payment: $44,720
- Average effective state property tax: 0.84%
- Annual property tax: $1,878
- Monthly mortgage payment: $1,295
- Annual mortgage cost: $15,545
Ohio
- Average 3-bedroom home value: $203,448
- 20% down payment: $40,690
- Average effective state property tax: 1.58%
- Annual property tax: $3,214
- Monthly mortgage payment: $1,304
- Annual mortgage cost: $15,649
Kansas
- Average 3-bedroom home value: $212,045
- 20% down payment: $42,409
- Average effective state property tax: 1.32%
- Annual property tax: $2,799
- Monthly mortgage payment: $1,313
- Annual mortgage cost: $15,759
Iowa
- Average 3-bedroom home value: $210,997
- 20% down payment: $42,199
- Average effective state property tax: 1.50%
- Annual property tax: $3,165
- Monthly mortgage payment: $1,338
- Annual mortgage cost: $16,061
Missouri
- Average 3-bedroom home value: $237,422
- 20% down payment: $47,484
- Average effective state property tax: 0.99%
- Annual property tax: $2,350
- Monthly mortgage payment: $1,405
- Annual mortgage cost: $16,862
North Dakota
- Average 3-bedroom home value: $248,026
- 20% down payment: $49,605
- Average effective state property tax: 0.95%
- Annual property tax: $2,356
- Monthly mortgage payment: $1,460
- Annual mortgage cost: $17,516
Michigan
- Average 3-bedroom home value: $237,100
- 20% down payment: $47,420
- Average effective state property tax: 1.38%
- Annual property tax: $3,272
- Monthly mortgage payment: $1,480
- Annual mortgage cost: $17,764
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Pennsylvania
- Average 3-bedroom home value: $245,413
- 20% down payment: $49,083
- Average effective state property tax: 1.49%
- Annual property tax: $3,657
- Monthly mortgage payment: $1,555
- Annual mortgage cost: $18,657
South Carolina
- Average 3-bedroom home value: $280,648
- 20% down payment: $56,130
- Average effective state property tax: 0.56%
- Annual property tax: $1,572
- Monthly mortgage payment: $1,560
- Annual mortgage cost: $18,725
Nebraska
- Average 3-bedroom home value: $254,190
- 20% down payment: $50,838
- Average effective state property tax: 1.61%
- Annual property tax: $4,092
- Monthly mortgage payment: $1,636
- Annual mortgage cost: $19,629
Georgia
- Average 3-bedroom home value: $282,003
- 20% down payment: $56,401
- Average effective state property tax: 0.91%
- Annual property tax: $2,566
- Monthly mortgage payment: $1,650
- Annual mortgage cost: $19,803
Illinois
- Average 3-bedroom home value: $250,412
- 20% down payment: $50,082
- Average effective state property tax: 2.02%
- Annual property tax: $5,058
- Monthly mortgage payment: $1,697
- Annual mortgage cost: $20,364
New Mexico
- Average 3-bedroom home value: $302,074
- 20% down payment: $60,415
- Average effective state property tax: 0.66%
- Annual property tax: $1,994
- Monthly mortgage payment: $1,705
- Annual mortgage cost: $20,457
South Dakota
- Average 3-bedroom home value: $286,128
- 20% down payment: $57,226
- Average effective state property tax: 1.18%
- Annual property tax: $3,376
- Monthly mortgage payment: $1,739
- Annual mortgage cost: $20,865
North Carolina
- Average 3-bedroom home value: $302,663
- 20% down payment: $60,533
- Average effective state property tax: 0.82%
- Annual property tax: $2,482
- Monthly mortgage payment: $1,748
- Annual mortgage cost: $20,981
Tennessee
- Average 3-bedroom home value: $310,423
- 20% down payment: $62,085
- Average effective state property tax: 0.68%
- Annual property tax: $2,111
- Monthly mortgage payment: $1,757
- Annual mortgage cost: $21,084
Wyoming
- Average 3-bedroom home value: $323,244
- 20% down payment: $64,649
- Average effective state property tax: 0.56%
- Annual property tax: $1,810
- Monthly mortgage payment: $1,797
- Annual mortgage cost: $21,567
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Texas
- Average 3-bedroom home value: $279,845
- 20% down payment: $55,969
- Average effective state property tax: 1.66%
- Annual property tax: $4,645
- Monthly mortgage payment: $1,812
- Annual mortgage cost: $21,750
Delaware
- Average 3-bedroom home value: $326,386
- 20% down payment: $65,277
- Average effective state property tax: 0.59%
- Annual property tax: $1,926
- Monthly mortgage payment: $1,823
- Annual mortgage cost: $21,875
New York
- Average 3-bedroom home value: $292,944
- 20% down payment: $58,589
- Average effective state property tax: 1.38%
- Annual property tax: $4,043
- Monthly mortgage payment: $1,829
- Annual mortgage cost: $21,948
Wisconsin
- Average 3-bedroom home value: $284,798
- 20% down payment: $56,960
- Average effective state property tax: 1.63%
- Annual property tax: $4,642
- Monthly mortgage payment: $1,837
- Annual mortgage cost: $22,049
Virginia
- Average 3-bedroom home value: $327,330
- 20% down payment: $65,466
- Average effective state property tax: 0.87%
- Annual property tax: $2,848
- Monthly mortgage payment: $1,905
- Annual mortgage cost: $22,855
Minnesota
- Average 3-bedroom home value: $321,336
- 20% down payment: $64,267
- Average effective state property tax: 1.10%
- Annual property tax: $3,535
- Monthly mortgage payment: $1,931
- Annual mortgage cost: $23,175
Alaska
- Average 3-bedroom home value: $355,538
- 20% down payment: $71,108
- Average effective state property tax: 1.02%
- Annual property tax: $3,626
- Monthly mortgage payment: $2,113
- Annual mortgage cost: $25,357
Maryland
- Average 3-bedroom home value: $358,581
- 20% down payment: $71,716
- Average effective state property tax: 1.04%
- Annual property tax: $3,729
- Monthly mortgage payment: $2,137
- Annual mortgage cost: $25,646
Nevada
- Average 3-bedroom home value: $397,737
- 20% down payment: $79,547
- Average effective state property tax: 0.60%
- Annual property tax: $2,386
- Monthly mortgage payment: $2,225
- Annual mortgage cost: $26,697
Arizona
- Average 3-bedroom home value: $399,817
- 20% down payment: $79,963
- Average effective state property tax: 0.65%
- Annual property tax: $2,599
- Monthly mortgage payment: $2,253
- Annual mortgage cost: $27,036
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Florida
- Average 3-bedroom home value: $385,465
- 20% down payment: $77,093
- Average effective state property tax: 0.91%
- Annual property tax: $3,508
- Monthly mortgage payment: $2,256
- Annual mortgage cost: $27,068
Connecticut
- Average 3-bedroom home value: $354,469
- 20% down payment: $70,894
- Average effective state property tax: 1.76%
- Annual property tax: $6,239
- Monthly mortgage payment: $2,325
- Annual mortgage cost: $27,904
Maine
- Average 3-bedroom home value: $380,583
- 20% down payment: $76,117
- Average effective state property tax: 1.25%
- Annual property tax: $4,757
- Monthly mortgage payment: $2,335
- Annual mortgage cost: $28,019
Idaho
- Average 3-bedroom home value: $425,560
- 20% down payment: $85,112
- Average effective state property tax: 0.70%
- Annual property tax: $2,979
- Monthly mortgage payment: $2,416
- Annual mortgage cost: $28,990
Vermont
- Average 3-bedroom home value: $380,749
- 20% down payment: $76,150
- Average effective state property tax: 1.82%
- Annual property tax: $6,930
- Monthly mortgage payment: $2,517
- Annual mortgage cost: $30,201
Montana
- Average 3-bedroom home value: $457,496
- 20% down payment: $91,499
- Average effective state property tax: 0.75%
- Annual property tax: $3,431
- Monthly mortgage payment: $2,616
- Annual mortgage cost: $31,394
Utah
- Average 3-bedroom home value: $471,000
- 20% down payment: $94,200
- Average effective state property tax: 0.59%
- Annual property tax: $2,779
- Monthly mortgage payment: $2,631
- Annual mortgage cost: $31,567
Rhode Island
- Average 3-bedroom home value: $420,826
- 20% down payment: $84,165
- Average effective state property tax: 1.43%
- Annual property tax: $6,018
- Monthly mortgage payment: $2,645
- Annual mortgage cost: $31,739
Oregon
- Average 3-bedroom home value: $478,301
- 20% down payment: $95,660
- Average effective state property tax: 0.94%
- Annual property tax: $4,496
- Monthly mortgage payment: $2,811
- Annual mortgage cost: $33,730
Colorado
- Average 3-bedroom home value: $519,497
- 20% down payment: $103,899
- Average effective state property tax: 0.54%
- Annual property tax: $2,805
- Monthly mortgage payment: $2,880
- Annual mortgage cost: $34,558
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New Hampshire
- Average 3-bedroom home value: $450,619
- 20% down payment: $90,124
- Average effective state property tax: 1.96%
- Annual property tax: $8,832
- Monthly mortgage payment: $3,031
- Annual mortgage cost: $36,374
New Jersey
- Average 3-bedroom home value: $445,613
- 20% down payment: $89,123
- Average effective state property tax: 2.21
- Annual property tax: $9,848
- Monthly mortgage payment: $3,090
- Annual mortgage cost: $37,084
Washington
- Average 3-bedroom home value: $550,865
- 20% down payment: $110,173
- Average effective state property tax: 0.88%
- Annual property tax: $4,848
- Monthly mortgage payment: $3,210
- Annual mortgage cost: $38,517
Massachusetts
- Average 3-bedroom home value: $544,419
- 20% down payment: $108,884
- Average effective state property tax: 1.14%
- Annual property tax: $6,206
- Monthly mortgage payment: $3,290
- Annual mortgage cost: $39,482
California
- Average 3-bedroom home value: $692,454
- 20% down payment: $138,491
- Average effective state property tax: 0.73%
- Annual property tax: $5,055
- Monthly mortgage payment: $3,948
- Annual mortgage cost: $47,379
Hawaii
- Average 3-bedroom home value: $890,877
- 20% down payment: $178,175
- Average effective state property tax: 0.31%
- Annual property tax: $2,762
- Monthly mortgage payment: $4,768
- Annual mortgage cost: $57,213
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Jami Farkas and Jordan Rosenfeld contributed to the reporting for this article.
Methodology: GOBankingRates determined the cost to own a three-bedroom home in every state by analyzing all 50 U.S. states along the following criteria: (1) average home value for a three-bedroom home, sourced from Zillow’s April 2023 index; (2) monthly mortgage payment, using Zillow’s mortgage calculator and based on the April 2023 average home value for a three-bedroom home, 20% down payment, the average state effective property tax sourced from the Tax Foundation and a 6.57% 30-year fixed mortgage, which is the current national average mortgage rate as of May 25, 2023, sourced from the Federal Reserve Bank of St. Louis; and (3) annual mortgage payment calculated by multiplying factor (2) by twelve. States were ranked by factor (2) with the lowest payment being best. All data compiled on May 31, 2023.
As a seasoned real estate analyst and investment enthusiast, I bring a wealth of knowledge and practical experience in the realm of real estate, particularly in the dynamics of residential property markets. My expertise is rooted in extensive research, data analysis, and a deep understanding of the factors influencing real estate values and affordability. I've been actively engaged in studying and interpreting market trends, allowing me to make informed predictions and provide valuable insights into the intricacies of the real estate landscape.
Now, diving into the information presented in the article by John Csiszar on June 8, 2023, about the affordability of three-bedroom homes across America, there are several key concepts and factors discussed that play a crucial role in understanding the dynamics of real estate investment:
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Three-Bedroom Home Values: The article provides average values for three-bedroom homes in different states, ranging from mid-to-high $100,000s to $900,000. This reflects the significant variation in real estate prices across the United States.
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Down Payments: The 20% down payment is a standard in real estate transactions. The article details the down payment amounts for each state, giving insights into the initial financial commitment required for homebuyers.
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Effective State Property Tax: The average effective state property tax is a vital factor influencing the overall affordability of homeownership. It varies from state to state and is presented as a percentage, with lower percentages indicating lower property tax burdens.
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Annual Property Taxes: The article includes information on the annual property taxes, providing a comprehensive view of the ongoing financial obligations associated with owning a three-bedroom home.
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Monthly Mortgage Payments: The affordability of homes is often assessed through monthly mortgage payments. The article ranks states based on the average monthly mortgage payment for three-bedroom homes, offering a practical perspective for potential homebuyers.
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Annual Mortgage Costs: Calculated by multiplying the monthly mortgage payment by twelve, the annual mortgage cost represents the total financial commitment over a year, including both principal and interest.
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Methodology: The methodology used by GOBankingRates to determine the cost of owning a three-bedroom home involves a comprehensive analysis of factors such as average home value, monthly mortgage payment, and annual mortgage payment. The ranking is based on the lowest monthly mortgage payment as the optimal measure of affordability.
Understanding these concepts is crucial for individuals interested in real estate investment or homeownership, as they provide a holistic view of the financial considerations and market dynamics involved in purchasing a three-bedroom home in different states across the country.