The 10 Cheapest States to Buy a House in the U.S.,Ranked

Housing affordability remains a major issue for homebuyers. This is because mortgage rates are still sitting at above 7%, median home prices hit a record high in May, and housing supply is only just recovering. All of this follows a difficult 2023, which was declared the least affordable year for homebuyers on record.  As a result, many people, especially coastal homebuyers, have been searching to move to more affordable places. During the pandemic, many people chose the Sun Belt, primarily cities in Florida, Arizona, and Texas. However, as the migration and housing booms fade, people have begun looking elsewhere for homes they can afford, especially in the Rust Belt. But where are homes the most affordable? What are the cheapest states to buy a house? If you’re in the market for a house and looking for an affordable place to live, this is the article for you.U.S. market at a glance Median sale price:  $439,716 Median household income: $75,149 Median monthly housing payment: $1,828 The 10 cheapest states to buy a house  1. Iowa Median sale price: $240,500 Median household income: $70,571 Median monthly housing payment: $1,444 Iowa is the cheapest state to buy a house in the U.S. Low house prices, paired with relatively high household incomes and modest taxes, make Iowa a great place to buy a home.  Iowa is widely known for its agriculture (more than 85% of the land is farmed), but it’s also home to a diverse range of amenities and cultures. In particular, it’s a great place for those looking for an urban lifestyle just minutes from forests, rivers, and prairies. Des Moines is the state’s capital and largest city. If you need a bit more convincing, a couple of cities in Iowa will even pay you to move there. Newton, for example, located 35 miles east of Des Moines, offers cash incentives and a welcome package for qualifying homebuyers. Homes in Des Moines are very affordable, too, sitting at $160,000. Some of the cheapest cities to buy a house in Iowa are Waterloo ($163,750) and Davenport ($187,500). Iowa homes for sale | Iowa homes for rent | Iowa apartments for rent 2. Oklahoma Median sale price: $251,400 Median household income: $61,364 Median monthly housing payment: $1,416 Oklahoma is an icon of the Great Plains. Flat, straight roads stretch for miles, straddling farmlands, cattle ranches, and rural towns that produce billions of pounds of food every year. The state is also home to 39 American Indian tribes, comprising a remarkable 16% of the state’s population. Traces of their history dot the landscape. Oklahoma City is the largest city in Oklahoma, followed by Tulsa.  The Sooner State has the second-lowest cost of living in the country, only bested by West Virginia. Even so, Tulsa is going further to attract homebuyers with remote jobs: they offer a $10,000 grant if you buy a house in town and live there for a year. Surprisingly, though, Oklahoma has the highest average home insurance costs in the country.  Most cities in the state have median sale prices well below the national average, but Lawton ($150,000) and Midwest City ($199,250) are among the most affordable places to live in Oklahoma.  Oklahoma homes for sale | Oklahoma homes for rent | Oklahoma apartments for rent 3. Ohio Median sale price: $259,100 Median household income: $66,990 Median monthly housing payment: $1,429 Ohio is a quintessential Midwestern state and was especially important for manufacturing in the 19th and early 20th centuries. A few of Ohio’s largest cities, including Cleveland and Cincinnati, have particularly deep roots in steel and automotive industries. While many cities in Ohio have been part of the Rust Belt for decades, low costs of living and very affordable house prices have helped revitalize many of them. House prices have been rising quickly as a result.  If you’re looking for a home below the national median, most cities in Ohio will fit the bill. Hamilton, a northwestern suburb of Cincinnati, will even pay you to move there if you’re a recent college graduate with outstanding student debt. However, two of the cheapest places to live in Ohio are Youngstown ($109,500) and Springfield ($129,900).  Ohio homes for sale | Ohio homes for rent | Ohio apartments for rent 4. Mississippi Median sale price: $261,800 Median household income: $52,985 Median monthly housing payment: $1,311 Known for bayous, barbecue, and the blues, Mississippi is a deep southern state with a diverse history and wondrous natural beauty. There’s a reason it’s called the Magnolia State, after all. Historic towns, plantations, and farmlands dot the landscape, along with massive forests, its namesake river, and pristine coastline. Jackson is Mississippi’s largest city.  Mississippi as a whole is a very affordable state for homebuyers, with Meridian ($35,000) and Jackson ($150,000) leading the way. However, Mississippi also has the highest poverty rate in the country; 18.2% of residents live below the federal poverty line.  No matter where you live in Mississippi, you’ll be next to centuries of history and likely next door to a great tourist attraction. Vicksburg National Military Park, the Elvis Presley Birthplace in Tupelo, and the Mississippi Petrified Forest are among the best places to check out.  Mississippi homes for sale | Mississippi homes for rent | Mississippi apartments for rent 5. Louisiana Median sale price: $263,500 Median household income: $57,852 Median monthly housing payment: $1,481 Louisiana is a colorful melting pot of histories and cultures, having been heavily influenced by Native American, French, and African peoples. In fact, Gumbo, an iconic Louisiana dish, is a literal melting pot that takes inspiration from these cultures.  Louisiana is best known for its musical heritage (jazz) and festivals (Mardi Gras), but that only scratches the surface of the Pelican State. Coastal marshes, swamps, forests, and waterfalls are all waiting to be explored, along with beautiful antebellum mansions and modest Creole cottages. New Orleans is Louisiana’s largest city, situated along the Mississippi River and Lake Pontchartrain.  Among the most affordable cities in Louisiana are Lake Charles ($187,000) and Shreveport ($202,500). Almost all cities in the state have median home sale prices below the national average, though.  Louisiana homes for sale | Louisiana homes for rent | Louisiana apartments for rent 6. Arkansas Median sale price: $263,800 Median household income: $56,335 Median monthly housing payment: $1,240 Arkansas lives up to its nickname of The Natural State; natural beauty lies around every corner. Highlights include the majestic Ozark and Ouachita Mountains, the winding Buffalo National River – perfect for canoeing and fishing – and Hot Springs National Park, a unique natural wonder. Many historic cities are nestled among the landscape, too, with Little Rock and Fayetteville being the largest cities in Arkansas.  The most affordable cities to buy a house in Arkansas are North Little Rock ($184,625) and Fort Smith ($215,000).  Unsurprisingly, with wide open spaces comes a thriving agriculture industry. Rice and cotton are major players, but poultry is where the state thrives. Arkansas is actually the country’s largest exporter of chicken, and over 6,500 farms in the state produce some kind of poultry (led by Tyson). Aerospace manufacturing is also a large industry.  Arkansas homes for sale | Arkansas homes for rent | Arkansas apartments for rent