Cheapest States to Buy a Home: Ranked
By Sarah Jones
8 months ago
1. Iowa
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In 2023, Iowa is currently the cheapest state to buy a house in. The median home price is $147,800, and the estimated monthly mortgage payment is $702. This is a huge contrast to expensive states like New York and Washington! As this Midwestern state is the biggest producer of corn in the country, there’s plenty of farmland in Iowa. But there are tons of cities to live in too, such as Iowa City and Des Moines.2. Indiana
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Indiana ranks number two on the list of cheap states to buy a home in. Here you can grab a house for $141,700 on average, which will take just 11.03% of the median income. Estimated monthly mortgage payments come in at just over $670, so you can definitely make your money go a bit further here. Like Iowa, it’s a state full of farmland, but you’ll find more activity near major universities including Ball State, Purdue and Indiana University.3. Ohio
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Ohio claims the bronze spot on the list. Another Midwestern state, Ohio has a median house price of $145,700 in 2023, which requires just 11% of the average person’s income. However, unlike Iowa and Indiana, there’s a lot more going on here; it’s the home of the Rock and Roll Hall of Fame, and has a huge football scene. Cheer on the Ohio State Buckeyes, the Cincinnati Bengals or the Cleveland Browns.4. Nebraska
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Known as the Cornhusker state, Nebraska has a median house price of $155,800. This means residents will pay just 11.19% of their income on a mortgage payment, which is about $740.22. As the name suggests, it’s another state that’s big on corn production, and there are tons of farms that produce beef. If you don’t fancy living on a farm, you can buy property in towns like Omaha and Lincoln.5. Kansas
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So Kansas and Nebraska are technically tied for fourth on this list. While they each cost 11.19% of a median household income, Kansas actually has cheaper houses, as the median home costs $151,900 here. Like the other states we’ve covered so far, Kansas too has plenty of farms, as it has high levels of wheatfield and grain production. Still, you can buy a home in the likes of Kansas City or Wichita if you don’t want to live somewhere too rural.6. Mississippi
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Mississippi is a lot different from the farm states we’ve listed! Known as the Magnolia state, Mississippi is the leading producer of catfish, and has tons of Southern charm. Here you can buy yourself a home for around $119,000, which will take just 11.21% of the median household income. Estimated monthly mortgage payments sit at $565.38, which isn’t too shabby.7. West Virginia
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House prices in West Virginia are neck and neck with Mississippi. The median home price is around $119,600, which equates to 11.3% of a median household income. This means that monthly mortgage payments are estimated to be $568.23. If you like spending time outdoors, West Virginia might be the state for you – it’s nestled right in the Appalachians, which is why it’s called the Mountain State! You’ll find tons of sprawling hills, valleys and spectacular scenery.8. Oklahoma
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A little bit more expensive than the likes of Mississippi and West Virginia, Oklahoma has a median home price of $136,800. This takes around 11.64% of a median household income. You can expect monthly mortgage installments to average $649.95. If history is your thing, Oklahoma will offer plenty to get your teeth into – the state is steeped in Native American history.9. Michigan
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Michigan has some great cities, industries and natural scenery to offer its residents – as well as decent house prices! Homes here cost around $154,900 on average, which takes just 11.7% of a standard household income. This means you’ll be expected to pay $735.95 in monthly mortgage repayments, which is a pretty cool deal for a state packed with opportunity.10. Arkansas
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In 2023, Arkansas house prices are currently around $129,000, which takes just 12% of the median household income. This definitely puts it in the more affordable areas to live, as monthly mortgage payments average $607.19. If you do decide to live in Arkansas, you can enjoy the spectacular natural landscape, which features acres of stunning lakes, rivers and hot springs.11. Alabama
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This is where house prices start to creep up a bit. The median home price here jumps up to $142,700, which is a fair few thousand more than Arkansas. You’ll be expected to pay $677.99 in monthly mortgage payments, which equates to 12.2% of a median household income. This state is known for football and southern hospitality, and has cool cities like Birmingham and Montgomery.12. North Dakota
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In North Dakota, you can expect median home prices to be around $193,900, while the median income is just over $90,000. This means that North Dakota homes take only 12.27 percent of the median household income, and monthly mortgage repayments are around $921.24. Like other farm states, North Dakota has high wheat production, and is actually one of America’s least populated states.13. Kentucky
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A median home in Kentucky will set you back around 141,000, making it the thirteenth cheapest state to buy a house in. You can expect to pay $669.91 a month on mortgage repayments, which will take 12.35% of an average household income. Kentucky is known as the Bluegrass state, and is big on everything from tobacco farming and coal mining to horse racing and fried chicken.14. Missouri
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In Missouri, the median house price is currently just over $157,000. As the average household earns $72,300 per year, 12.4% of that will go towards a home, with estimated monthly mortgage payments coming in at $746.88. Missouri, also known as the Show-Me state, is famous for its super cool blues and jazz scenes, and is home to one of the largest beer producers in the country.15. South Dakota
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House prices in South Dakota average $157,200. The typical mortgage payment here is just under $800 per month, and you’ll pay around 12.62% of your household income to buy a median-priced house. South Dakota is usually referred to as the Mount Rushmore state, and is home to the highest point in the Rocky Mountains. It also has a huge agricultural industry.16. Pennsylvania
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The median home price in Pennsylvania is $180,200, which is a bit of a jump from South Dakota. This means you’ll be expected to $856.15 each month in mortgage payments, which is 12.68% of the median household income (median incomes here are $81,000 per year). Pennsylvania is the birthplace of Hershey’s chocolate, and has everything from sprawling forests to dense mountains.17. Wisconsin
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Median house prices in Wisconsin aren’t too dissimilar from those in Pennsylvania. You can get a property for $180,600 here, and monthly mortgage payments are an average of $858.05. As median salaries are around $80,300, a home will take 12.82% of your household income. Wisconsin is known as ‘America’s Dairyland’ as it’s one of the biggest producers of dairy, and is particularly famous for its cheese.18. Illinois
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While Illinois easily makes it on the list, you can see that it’s a little bit pricier than other states, as homes usually go for around $194,500 here. As average incomes are about $85,000, you’ll pay 13.05% of your household income on your home, and have monthly mortgage payments of $924.09. Illinois is home to Chicago, which is easily one of America’s most iconic cities, and is the largest city in the Midwest.19. Texas
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While homes in Texas are actually cheaper than those in Illinois (the median home price is $172,500) average household incomes are lower at $75,100. This means you’ll be spending more of your income on your home, and will take 13.10%. You can also expect to pay $819.57 on monthly mortgage repayments. If you decide to settle here, you’ll have plenty to enjoy; cowboy culture, fantastic TexMex food and diverse landscapes.20. Georgia
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In Georgia, the median price you’ll pay for a home is $176,000. Again, it’s cheaper than other states on the list, but these homes will take 13.43% of the median household income. Estimated monthly mortgage payments are expected to be $836.20 on average. Georgia is known as the Peach state thanks to its high production of this fruit, and is the birthplace of Martin Luther King.21. South Carolina
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In South Carolina, the median house price is $162,300, and average salaries are $68,700. This means that you’ll pay 13.47% of your household income on your home, and will need to fork out $771.11 in monthly payments for your mortgage. South Carolina is a popular state for budding house buyers, as it enjoys warm temperatures, beaches, and festivals.22. Minnesota
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In Minnesota, homes cost a lot more. This is because wages tend to be higher ($93,100 on average in fact). The median house price in Minnesota is $223,900, which means mortgage payments come in at $1,063.78 per month. Your home will account for 13.71% of your household income in the state of 10,000 lakes, so it’s still in line with the percentages in other states.23. North Carolina
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North Carolina is a little more pricey than its southern sister. The median house price here is $172,500 (about $10,000 more than South Carolina) and accounts for 13.87% of a standard household income. This means that your monthly mortgage payments will work at $819.57 on average here. North Carolina has great food and arts scenes, along with huge state parks with massive mountains.24. Tennessee
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The median house price is lower in Tennessee than it is in North Carolina, but as homes take 13.9% of people’s incomes, it’s that bit lower on the list. You can bag an average home in this state for around $167,200, and should expect to pay $794.39 each month for your mortgage. Tennessee is generally associated with great music and top-tier whiskey, and is home to The Great Smokies.25. Maine
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In the state of Maine, median house prices for 2023 are around $190,400. As average household incomes consist of $75,700, homes will account for 14.34% of people’s salaries. So your monthly mortgage payments will work out at $904.61 – which is still cheaper than Minnesota! Maine is an affluent state that is home to great craft beer, farm-to-table dining and tons of lighthouses.26. Louisiana
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With plenty of Creole personality and an impressive musical history, Louisiana is becoming a pretty desirable state. Houses here average $163,100, so are on the cheap side, but wages tend to be lower (they’re currently $64,700, so trailing others featured on this list). Residents therefore spend 14.37% of their household income on their home, and pay $774.91 a month for their mortgage.27. New Hampshire
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In New Hampshire, homes are pretty expensive – especially when you compare the price to other states on this list. However, just like Minnesota, average incomes are higher here, and are a median of $98,200 in 2023. This takes 15.19% of an average household income, with monthly mortgage payments of $1,243.37. New Hampshire is known for its beautiful natural landscapes, and is home to the stunning White Mountains.28. Connecticut
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The median house price in Connecticut is $275,400, which is nearly double the price of a home in Iowa. Residents in Connecticut earn $102,600 on average, which accounts for 15.3% of their income. So monthly mortgage payments therefore work out at around $1,308.46. The home of both Yale University and ESPN, it’s a thriving state that has tons of culture and personality.29. Wyoming
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In Wyoming, the median house price is $220,500, and monthly mortgage payments are $1,047.62. As average household incomes are $81,900, the income-to-mortgage ratio is 15.35%, so not that much more than Connecticut. If you decide to move to Wyoming, you can enjoy stunning natural scenery, including the famous national parks of Yellowstone and Grand Teton.30. Vermont
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New Mexico
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The average house price in recent years for New Mexico stands at around $293,325, which is relatively affordable for a lot of high income households - the good news is, it's also a good investment opportunity in this state, and with a huge tourist market, it's a plus!Delaware
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The average house price if you're looking to buy a comfortable home in the state of Delaware is around $369,846. The good news about buying a house in Delaware is that this state has one of the lowest tax rates of any of the states in the US, so good news for real estate investment!Florida
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If you're looking to set up roots in the sunny state of Florida, then you're looking at around $377,000 for an average house here. Of course, there are so many different areas to choose from in this state, and the houses are going to be more pricey the closer you go to big cities or the beaches.Alaska
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If you'd rather escape the hustle and bustle of a huge tourist city and looking at houses in Alaska instead, it'll cost you around $417,500 on average, but there are houses that might be cheaper (or more expensive) depending on where you look. You'll need a hefty down payment if you want to buy here!Arizona
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If you're browsing the property market in the desert state of Arizona, you'll be looking at around $420,310 on average for a family home. As well as needed a lot of money, though, you'll also need to have a very high credit score to have any hope of buying a house in this state.Maryland
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The historical state of Maryland boasts house prices around $425,000 as the current average, and it's no surprise really when there's so much to see and do! The other thing you need to be aware of is that Maryland also has a high cost of living that you'll need to think about as well as the initial house price.Hawaii
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If you're looking to escape to the beautiful state of Hawaii and buy a home there, you'll need to expect price tags around $428,700 based on the market in recent years. If you're a foreigner to Hawaii looking to buy, though, it's going to be a more complicated process than if you're a native.Rhode Island
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