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This report tells you which states have the cheapest houses

We know the most expensive places to buy a home, but which states have the cheapest houses? Will prospective homeowners move for a chance to buy?

A family enters one of the cheapest houses in their local area, with gray modern patterned wallpaper and a real estate agent beckoning them inside.

Those in their twenties and thirties are not as quick to buy homes as their parents before them. Skyrocketing interest rates have made home attainment more difficult, despite Scholaroo data that states 91 percent of Americans express a desire to buy a home at some point. 

The percentage of households that own their homes is at 65.4. 

There are states where it’s more feasible to own a home than others, though you still have to factor in wages in those areas. But, with remote work becoming more the norm, it’s not out of the realm of possibility to be making California (the second most expensive state to own a home) wages and living in Indiana (the second least expensive state to own a home when considering factors of income and property taxes). 

Scholaroo’s recent report, Cheapest States to Buy a House, revealed several key insights: 

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  • West Virginia has the most affordable median home value in the entire country, standing at $166,870. Close behind are Mississippi with $171,348, and Arkansas with $188,075.
  • Hawaii takes the lead in having the highest median home value nationwide, at $850,934. California comes in second at $707,717, followed by New York at $558,897.
  • In terms of the mortgage payment to monthly income ratio, Connecticut sits in the most favorable position in the nation, standing at 22.95%. Conversely, Hawaii holds the unenviable distinction of having the highest ratio at a significant 39.69%.
  • When it comes to property taxes, Hawaii takes the lead with the lowest rate at just 0.31%. On the contrary, New Jersey imposes the highest property tax rate at 2.13%.

When factoring in average monthly household income; average monthly mortgage payment; median home value; mortgage payment to monthly income ratio; and property taxes, here is how states rank from the cheapest houses to most expensive:

  1. Minnesota
  2. Indiana
  3. Missouri
  4. Iowa
  5. West Virginia 
  6. Michigan
  7. Kentucky
  8. Connecticut
  9. Ohio
  10. North Dakota
  11. Kansas
  12. Nebraska
  13. Alabama
  14. Pennsylvania
  15. Wisconsin
  16. Louisiana
  17. Maryland
  18. Oklahoma
  19. Wyoming
  20. Delaware
  21. Virginia
  22. South Carolina
  23. Mississippi
  24. Georgia
  25. Arkansas
  26. Illinois
  27. Tennessee
  28. New Hampshire
  29. North Carolina
  30. Texas
  31. New Mexico
  32. Vermont
  33. Maine
  34. Alaska
  35. Idaho
  36. Arizona
  37. Rhode Island
  38. Florida
  39. New Jersey
  40. South Dakota
  41. New York
  42. Washington
  43. Massachusetts
  44. Colorado
  45. Nevada
  46. Utah
  47. Oregon
  48. Montana
  49. California
  50. Hawaii

This doesn’t directly line up with where people are flocking to (end-of-year data for 2022 showed that people were heading to Florida and Texas as others fled from California, New York and Illinois). It will be interesting to gauge any shift of popularity in the cheaper states with the cheapest houses. Will rankings change as people head toward cheaper, ultimately driving up prices?

Staff Writer, Taylor Leddin is a publicist and freelance writer for a number of national outlets. She was featured on Thrive Global as a successful woman in journalism, and is the editor-in-chief of The Tidbit. Taylor resides in Chicago and has a Bachelor in Communication Studies from Illinois State University.


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