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Dan Green
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Updated: October 2, 2024
This article lists estimated mortgage payment for homes. Estimated mortgage payments are based on a 97% loan-to-value conventional mortgage using today's average mortgage rate of 6.25%. APR calculations assume one origination point.
Are you looking for the cheapest state to buy a house in? We used household income and home price data from the government to find 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 | $883 (APR: 6.089%) | 10.60% |
| 2 | Indiana | $141,700 | $73,300 | $846 (APR: 6.089%) | 11.02% |
| 3 | Ohio | $145,700 | $75,300 | $870 (APR: 6.089%) | 11.03% |
| 4 | Nebraska | $155,800 | $79,400 | $931 (APR: 6.100%) | 11.19% |
| 5 | Kansas | $151,900 | $77,400 | $907 (APR: 6.089%) | 11.19% |
| 6 | Mississippi | $119,000 | $60,000 | $711 (APR: 6.078%) | 11.31% |
| 7 | West Virginia | $119,600 | $60,300 | $714 (APR: 6.078%) | 11.31% |
| 8 | Oklahoma | $136,800 | $67,000 | $817 (APR: 6.089%) | 11.64% |
| 9 | Michigan | $154,900 | $75,300 | $925 (APR: 6.089%) | 11.73% |
| 10 | Arkansas | $127,800 | $60,700 | $763 (APR: 6.078%) | 12.00% |
| 11 | Alabama | $142,700 | $66,700 | $852 (APR: 6.089%) | 12.20% |
| 12 | North Dakota | $193,900 | $90,100 | $1,158 (APR: 6.110%) | 12.27% |
| 13 | Kentucky | $141,000 | $65,100 | $842 (APR: 6.089%) | 12.35% |
| 14 | Missouri | $157,200 | $72,300 | $939 (APR: 6.100%) | 12.40% |
| 15 | South Dakota | $167,100 | $75,500 | $998 (APR: 6.100%) | 12.62% |
| 16 | Pennsylvania | $180,200 | $81,000 | $1,076 (APR: 6.100%) | 12.68% |
| 17 | Wisconsin | $180,600 | $80,300 | $1,079 (APR: 6.100%) | 12.82% |
| 18 | Illinois | $194,500 | $85,000 | $1,162 (APR: 6.110%) | 13.05% |
| 19 | Texas | $172,500 | $75,100 | $1,030 (APR: 6.100%) | 13.10% |
| 20 | Georgia | $176,000 | $74,700 | $1,051 (APR: 6.100%) | 13.43% |
| 21 | South Carolina | $162,300 | $68,700 | $969 (APR: 6.100%) | 13.47% |
| 22 | Minnesota | $223,900 | $93,100 | $1,337 (APR: 6.110%) | 13.71% |
| 23 | North Carolina | $172,500 | $70,900 | $1,030 (APR: 6.100%) | 13.87% |
| 24 | Tennessee | $167,200 | $68,600 | $999 (APR: 6.100%) | 13.90% |
| 25 | Maine | $190,400 | $75,700 | $1,137 (APR: 6.110%) | 14.34% |
| 26 | Louisiana | $163,100 | $64,700 | $974 (APR: 6.100%) | 14.37% |
| 27 | New Hampshire | $261,700 | $98,200 | $1,563 (APR: 6.121%) | 15.19% |
| 28 | Connecticut | $275,400 | $102,600 | $1,645 (APR: 6.121%) | 15.30% |
| 29 | Wyoming | $220,500 | $81,900 | $1,317 (APR: 6.110%) | 15.35% |
| 30 | Vermont | $227,700 | $84,100 | $1,360 (APR: 6.110%) | 15.44% |
| 31 | New Mexico | $171,400 | $61,400 | $1,024 (APR: 6.100%) | 15.92% |
| 32 | Alaska | $270,400 | $93,900 | $1,615 (APR: 6.121%) | 16.42% |
| 33 | Virginia | $273,100 | $93,000 | $1,631 (APR: 6.121%) | 16.74% |
| 34 | Maryland | $314,800 | $106,000 | $1,880 (APR: 6.121%) | 16.93% |
| 35 | Rhode Island | $261,900 | $88,000 | $1,564 (APR: 6.121%) | 16.97% |
| 36 | Delaware | $251,100 | $83,000 | $1,500 (APR: 6.121%) | 17.25% |
| 37 | Florida | $215,300 | $70,000 | $1,286 (APR: 6.110%) | 17.54% |
| 38 | Idaho | $212,300 | $69,000 | $1,268 (APR: 6.110%) | 17.54% |
| 39 | Arizona | $225,500 | $73,200 | $1,347 (APR: 6.110%) | 17.56% |
| 40 | New Jersey | $335,600 | $106,000 | $2,004 (APR: 6.132%) | 18.05% |
| 41 | Montana | $230,600 | $72,100 | $1,377 (APR: 6.110%) | 18.23% |
| 42 | Utah | $279,100 | $85,300 | $1,667 (APR: 6.121%) | 18.65% |
| 43 | Nevada | $267,900 | $75,100 | $1,600 (APR: 6.121%) | 20.34% |
| 44 | Massachusetts | $381,600 | $106,200 | $2,279 (APR: 6.132%) | 20.49% |
| 45 | New York | $313,700 | $87,100 | $1,874 (APR: 6.121%) | 20.53% |
| 46 | Colorado | $343,300 | $93,000 | $2,050 (APR: 6.132%) | 21.05% |
| 47 | Washington | $339,000 | $91,600 | $2,025 (APR: 6.132%) | 21.10% |
| 48 | Oregon | $312,200 | $81,200 | $1,865 (APR: 6.121%) | 21.92% |
| 49 | California | $505,000 | $90,100 | $3,016 (APR: 6.132%) | 31.96% |
| 50 | Hawaii | $615,300 | $99,800 | $3,675 (APR: 6.142%) | 35.15% |
Iowa ranks as the most affordable state to buy a house in the U.S., with a median home price of just $147,800. Known for its vast farmlands, Iowa is the leading corn producer in the country, but it also offers urban living in cities like Des Moines, Iowa City, and Cedar Rapids.
Indiana, with a median home price of $141,700, is another affordable Midwestern state. From the bustling streets of Indianapolis to the scenic landscapes surrounding Fort Wayne, Indiana offers a balanced mix of urban and rural living.
Ohio, the birthplace of aviation and home to several professional sports teams, offers affordable housing with a median home price of $145,700. Cities like Columbus, Cleveland, and Cincinnati provide diverse living options, from urban excitement to suburban tranquility.
In Nebraska, where agriculture thrives, you can find homes with a median price of $155,800. The state’s major cities, Omaha and Lincoln, are growing hubs of business and culture.
Kansas ties with Nebraska for affordable housing but edges ahead with a lower median home price of $151,900. Known as the “Breadbasket of America,” Kansas is ideal for those who appreciate a slower pace of life in cities like Wichita and Topeka.
Mississippi, known for its Southern charm and magnolia trees, offers the lowest home prices in this list. The median price of $119,000 makes this state an attractive option for first-time homebuyers seeking affordable living.
West Virginia, also known as the Mountain State, is perfect for outdoor enthusiasts. With a median home price of $119,600, it offers a low-cost, nature-rich lifestyle for those seeking serenity and adventure in the Appalachian Mountains.
Oklahoma, rich in Native American history and offering a strong college football scene, is also known for affordable housing. With a median home price of $136,800, it’s a budget-friendly option for potential homeowners.
Michigan, surrounded by the Great Lakes, offers affordable living with a median home price of $154,900. Known for its automotive industry in Detroit, the state is also a haven for nature lovers with its abundant water resources.
Known for its natural beauty, Arkansas offers homes at a median price of $127,800. The state boasts hot springs, lakes, and a flourishing poultry industry, making it an appealing destination for nature and wildlife lovers.
Alabama, also known as the “Cotton State,” offers affordable living with a median home price of $142,700. This Southern state is steeped in history and tradition, with cities like Montgomery, Birmingham, and Mobile providing plenty of opportunities for work and leisure. Alabama is well-known for its Southern hospitality and strong football culture.
North Dakota, one of the least populated states, boasts a median home price of $193,900. The state is primarily known for its expansive wheat fields and agricultural output. For those seeking a quiet life with vast open spaces, North Dakota offers an ideal environment.
Kentucky, with its rolling hills and rich history in horse racing, offers homes at a median price of $141,000. Known as the Bluegrass State, Kentucky is famous for its bourbon, coal mining, and beautiful landscapes. Major cities like Louisville, Lexington, and Frankfort provide a mix of urban and suburban living.
With a median home price of $157,200, Missouri offers affordable living with big-city amenities in places like St. Louis, Kansas City, and Springfield. Missouri is famous for its jazz and blues music, as well as its distinctive barbecue culture. The state offers a balance between metropolitan excitement and rural calm.
South Dakota, known for Mount Rushmore and the Black Hills, has a median home price of $167,100. In addition to being a hub for outdoor enthusiasts, South Dakota offers a vibrant agricultural economy, with major industries in corn and livestock production.
When making an offer on a house in these states, you may encounter significantly higher home prices. These states often experience surging demand, limited housing supply, and growing populations, driving up the costs.
Hawaii tops the list as the most expensive state to buy a home. Known for its breathtaking beaches, tropical climate, and laid-back lifestyle, Hawaii is a dream destination for many — but it comes with a hefty price tag.
California’s housing costs are among the highest in the country. With a median home price of $505,000, the Golden State is known for its thriving tech industries, diverse culture, and major cities like Los Angeles, San Francisco, and San Diego. However, it’s also notorious for its housing affordability crisis.
Oregon is known for its lush forests, scenic coastlines, and eclectic cities like Portland and Salem. With a median home price of $312,200, Oregon offers a higher cost of living compared to many states but compensates with its natural beauty and progressive culture.
Washington, with a median home price of $339,000, is known for its technology industry and vast evergreen forests. The state is home to Seattle, one of the fastest-growing tech hubs, and offers no shortage of outdoor activities, from hiking to skiing.
Colorado rounds out the list of most expensive states with a median home price of $343,300. Known for its stunning mountains and vibrant cities like Denver and Boulder, Colorado has become a hotspot for those seeking outdoor adventure and a dynamic lifestyle.
Buying a house that fits within your budget is essential for first-time homebuyers. Now that you know the cheapest and most expensive states to buy a house, have you decided where to settle? For more insights, check out our study on the best cities for young adults for an even more informed decision.
This article, "Cheapest State to Buy a House," authored by Dan Green, is based on extensive professional mortgage experience and includes references to trusted sources such as industry-leading financial institutions and expert research from the following websites:
This article was last updated on October 2, 2024.
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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.
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