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Cheapest State to Buy a House
Are you looking for the cheapest state to buy a house in? We used income data and local home prices to fine the nation’s 15 most affordable states.
How much of your income will you spend on your mortgage payment?
Rank
State
Median Home Price
Median Household Income
Estimated Monthly Mortgage Payment
Income-to-Mortgage Ratio
1
Iowa
$147,800
$79,500
$702.22
10.60%
2
Indiana
$141,700
$73,300
$673.23
11.02%
3
Ohio
$145,700
$75,300
$692.24
11.03%
4
Nebraska
$155,800
$79,400
$740.22
11.19%
5
Kansas
$151,900
$77,400
$721.70
11.19%
6
Mississippi
$119,000
$60,000
$565.38
11.31%
7
West Virginia
$119,600
$60,300
$568.23
11.31%
8
Oklahoma
$136,800
$67,000
$649.95
11.64%
9
Michigan
$154,900
$75,300
$735.95
11.73%
10
Arkansas
$127,800
$60,700
$607.19
12.00%
11
Alabama
$142,700
$66,700
$677.99
12.20%
12
North Dakota
$193,900
$90,100
$921.24
12.27%
13
Kentucky
$141,000
$65,100
$669.91
12.35%
14
Missouri
$157,200
$72,300
$746.88
12.40%
15
South Dakota
$167,100
$75,500
$793.91
12.62%
16
Pennsylvania
$180,200
$81,000
$856.15
12.68%
17
Wisconsin
$180,600
$80,300
$858.05
12.82%
18
Illinois
$194,500
$85,000
$924.09
13.05%
19
Texas
$172,500
$75,100
$819.57
13.10%
20
Georgia
$176,000
$74,700
$836.20
13.43%
21
South Carolina
$162,300
$68,700
$771.11
13.47%
22
Minnesota
$223,900
$93,100
$1,063.78
13.71%
23
North Carolina
$172,500
$70,900
$819.57
13.87%
24
Tennessee
$167,200
$68,600
$794.39
13.90%
25
Maine
$190,400
$75,700
$904.61
14.34%
26
Louisiana
$163,100
$64,700
$774.91
14.37%
27
New Hampshire
$261,700
$98,200
$1,243.37
15.19%
28
Connecticut
$275,400
$102,600
$1,308.46
15.30%
29
Wyoming
$220,500
$81,900
$1,047.62
15.35%
30
Vermont
$227,700
$84,100
$1,081.83
15.44%
31
New Mexico
$171,400
$61,400
$814.34
15.92%
32
Alaska
$270,400
$93,900
$1,284.70
16.42%
33
Virginia
$273,100
$93,000
$1,297.53
16.74%
34
Maryland
$314,800
$106,000
$1,495.65
16.93%
35
Rhode Island
$261,900
$88,000
$1,244.32
16.97%
36
Delaware
$251,100
$83,000
$1,193.01
17.25%
37
Florida
$215,300
$70,000
$1,022.92
17.54%
38
Idaho
$212,300
$69,000
$1,008.66
17.54%
39
Arizona
$225,500
$73,200
$1,071.38
17.56%
40
New Jersey
$335,600
$106,000
$1,594.48
18.05%
41
Montana
$230,600
$72,100
$1,095.61
18.23%
42
Utah
$279,100
$85,300
$1,326.04
18.65%
43
Nevada
$267,900
$75,100
$1,272.83
20.34%
44
Massachusetts
$381,600
$106,200
$1,813.03
20.49%
45
New York
$313,700
$87,100
$1,490.43
20.53%
46
Colorado
$343,300
$93,000
$1,631.06
21.05%
47
Washington
$339,000
$91,600
$1,610.63
21.10%
48
Oregon
$312,200
$81,200
$1,483.30
21.92%
49
California
$505,000
$90,100
$2,399.32
31.96%
50
Hawaii
$615,300
$99,800
$2,923.36
35.15%
15 Cheapest States to Buy a House
1. Iowa
Median Home Price: $147,800
Estimated Monthly Mortgage Payment: $702
Iowa came in at the top of our list of the most affordable homes in America. In the Hawkeye State, a home costs just $147,800, and it takes a mere 10.6 percent of the median household income to afford one.
This Midwestern state is the largest producer of corn in the country, and its miles of farmland are a testament to that. Still, there are plenty of big cities to live in, too. The largest housing markets in Iowa include Des Moines, Iowa City, and Cedar Rapids.
2. Indiana
Median Home Price: $141,700
Estimated Monthly Mortgage Payment: $673.23
Indiana takes the runner-up spot with a median home price of $141,700. Buying a house in Indiana takes just 11.03 percent of the median income. The estimated monthly mortgage payment is just over $670.
Another Midwestern state, Indiana is flat and full of farmland. Its biggest cities are Indianapolis, Fort Wayne, and Bloomington, and major universities like Purdue, Ball State, and Indiana University are located there.
3. Ohio
Median Home Price: $145,700
Estimated Monthly Mortgage Payment: $692.24
Ohio continues the Midwestern trend, taking third place on our list. The Buckeye State requires just 11 percent of the average earner’s income to buy a house. Home prices sit at $145,700.
The birthplace of the Wright Brothers and home to the Rock and Roll Hall of Fame, Ohio certainly has a lot going for it. The state’s also big on football — and most residents cheer for the Cincinnati Bengals, the Cleveland Browns, or the Ohio State Buckeyes.
4. Nebraska
Median Home Price: $155,800
Estimated Monthly Mortgage Payment: $740.22
In Nebraska, residents will spend just 11.19 percent of their income — about $740.22 — on a mortgage payment for a median-priced home. House prices in the state are just under $156,000
If its nickname — the Cornhusker State — is any indication, Nebraska is big on corn farming. Its cattle industry is booming, and it’s often called the “Beef State” as well. Nebraska’s biggest towns are Omaha and Lincoln.
Kansas and Nebraska technically tied for fourth, costing 11.19 percent of the median household income to buy a house. Homes in Kansas are lower priced, though. The median home costs $151,900 in this state.
Kansas is playfully referred to as the nation’s “breadbasket” for its plentiful wheatfields and grain production. The state’s biggest cities are Kansas City, Wichita, and Topeka.
Homes are just slightly less affordable in Mississippi than in Kansas and Nebraska. Here, it takes 11.31 percent of the median household income to buy a house, and home prices hover around $119,000.
Mississippi is known as the Magnolia State thanks to its flowering state tree. It’s also a leading catfish producer and full of down-home Southern charm. Its biggest cities are Jackson and Biloxi.
7. West Virginia
Median Home Price: $119,600
Estimated Monthly Mortgage Payment: $568.23
In West Virginia, homes are comparable to Mississippi’s. It costs 11.31 percent of the median household income to buy a house, and the typical home costs just under $120,000.
Aptly named the Mountain State, West Virginia is nestled right in the Appalachians. It’s known for its rolling hills, valleys, and mountains — and all the outdoor activities that come with them.
8. Oklahoma
Median Home Price: $136,800
Estimated Monthly Mortgage Payment: $649.95
Oklahoma homes are just slightly less affordable than Mississippi’s, clocking in at 11.64% of the median household income. The typical home costs $136,600, just about double the state’s median income.
Oklahoma is known for its deep Native American history. The name “Oklahoma” comes from the Choctaw language, and the state is still home to many reservations. The state also has a huge college football scene, with most cheering on either Oklahoma University or Oklahoma State.
In Michigan, a median-priced home costs just 11.73 percent of the typical household income, which is $75,300. The state’s median home price is $154,900.
The state is most known for the Great Lakes and its auto production, which takes place in the Motor City of Detroit.
10. Arkansas
Median Home Price: $127,800
Estimated Monthly Mortgage Payment: $607.19
In Arkansas, it takes 12 percent of the median household income to afford a house. Home prices start at just under $129,000, and the average mortgage payment is $607.19.
Arkansas is known for its acres of lakes, hot springs, and rivers. The state also produces the nation’s most poultry and is known as “The Land of Opportunity.”
11. Alabama
Median Home Price: $142,700
Estimated Monthly Mortgage Payment: $677.99
Alabama is the eleventh-cheapest state to buy a house in. In the Cotton State, homes comprise 12.2 percent of the average household income, and home prices average $142,700.
If you’re itching for that true Southern feel, Alabama’s the place to head. Known for its football, southern hospitality, and sprawling plantation homes with curb appeal, you’ll feel right at home in major cities like Montgomery, Birmingham, or Mobile.
12. North Dakota
Median Home Price: $193,900
Estimated Monthly Mortgage Payment: $921.24
North Dakota homes take only 12.27 percent of the median household income to buy a house, putting it twelfth on our list of cheapest states. The typical home costs $193,900, and the median income is just over $90,000.
The state is largely known for its wheat production and is one of the nation’s least populated states. It’s named for the Sioux Dakota people who once lived there.
13. Kentucky
Median Home Price: $141,000
Estimated Monthly Mortgage Payment: $669.91
Kentucky’s homes take just 12.35 percent of the typical household income, which clocks in at $65,100. A median home costs $141,000, making it our thirteenth cheapest state to buy a house in.
Also known as the Bluegrass State, Kentucky is known for horse racing, tobacco farming, fried chicken, and coal mining. The biggest cities in the state are Louisville, Lexington, and Frankfort.
14. Missouri
Median Home Price: $157,200
Estimated Monthly Mortgage Payment: $746.88
A median-priced home in Missouri takes just 12.4 percent of the typical household income in the state. Home prices clock in at just over $157,000, while the average household earns $72,300 per year.
The Show-Me State is known for its blues and jazz scenes, as well as its world-famous barbecue. The state’s Anheuser-Busch company is the largest beer producer in the country.
15. South Dakota
Median Home Price: $167,100
Estimated Monthly Mortgage Payment: $793.91
In South Dakota, you’ll pay just 12.62 percent of your income to buy a median-priced house, which sits at $157,200. The typical mortgage payment is just shy of $800 per month.
Known as the Mount Rushmore State, it’s clear what national monument South Dakota is famous for. The state also boasts the highest point in the Rocky Mountains and has a booming agricultural industry, which cranks out corn, soybeans, wheat, pork, and beef.
You may be surprised by home costs when making an offer on a house in these states. These home prices soar above the affordable ones listed previously. This is often due to booming populations, supply shortages, surging demand, or a combination of all three.
1. Hawaii
Median Home Price: $615,300
Estimated Monthly Mortgage Payment: $2,923.36
Hawaii is the least affordable state to buy a house in. Residents pay a whopping 35.15 percent of the median income to afford a home, which costs $615,300.
Known for its pristine beaches and incredible weather, Hawaii is a popular destination for vacationers and residents alike. The state boasts six islands, the largest of which is the Big Island.
2. California
Median Home Price: $505,000
Estimated Monthly Mortgage Payment: $2,399.32
California is well-known for its high housing costs, so its place on our most expensive list is no surprise. A house here costs almost 32 percent of the median household income.
Dubbed the Golden State for its gold rush days, California is the most populous state in the nation. It’s home to major cities like Los Angeles, San Diego, San Francisco, and Sacramento.
3. Oregon
Median Home Price: $312,200
Estimated Monthly Mortgage Payment: $1,483.30
Our third most expensive state is Oregon, where it takes 21.92 percent of the median household income of $81,200 to buy a house. The typical home costs just over $312,000.
Oregon is known for its rain, lush forests, variety of lakes and canyons, and miles of shoreline. It’s home to major cities like Portland and Salem (not to be confused with Salem, Massachusetts, where the Salem Witch Trials occurred).
4. Washington
Median Home Price: $339,000
Estimated Monthly Mortgage Payment: $1,610.63
Another West Coast state is fourth in the list of the most expensive states to live in. In Washington, it takes just over 21 percent of the median income to afford a house, which costs the typical $339,000.
Known as the Evergreen State for its plentiful forests, Washington offers no shortage of hiking opportunities. The state is also big on fruit production (apples, namely) and is home to Seattle, the eighteenth-biggest city in the nation.
5. Colorado
Median Home Price: $343,300
Estimated Monthly Mortgage Payment: $1,631.06
Colorado is the fourth Western state on the list of the five most expensive places to buy a home. On average, it takes the typical earner more than 21 percent of their income (about $93,000) to afford a house here.
Colorado is known for its soaring mountains and booming ski towns like Aspen, Vail, and Telluride. The state is also home to major cities like Denver, Boulder, and Colorado.
Ready to buy a house?
Buying a house out of budget is a common mistake for first-time home buyers. Now that you know the cheapest states to buy a house, have you decided where to live? We have also published a data study on the best cities for young adults.
Methodology
We used median home value and median household income data to determine what percentage of a household’s income paid the monthly mortgage payment in each state to determine affordability.
We assumed all home mortgages were purchased using a conventional 30-year fixed-rate mortgage with a mortgage interest rate of 7 percent.
This article, "Cheapest State to Buy a House" draws on the author's professional mortgage experiences and references information found at these authoritative websites:
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