The Cheapest Housing Markets in America, Ranked
This Homebuyer.com research page provides a comprehensive ranking of all 50 U.S. states by housing affordability, updated daily with current market data.
The study covers all 50 states and the District of Columbia.
Our rankings uses Housing Payment Ratio - the percentage of monthly income required to pay a mortgage - to show which states are cheapest for today's home buyers.
Key Takeaways
- California housing payments require 2.3x more monthly income than Iowa.
- Midwestern states dominate the top 10 cheapest states.
- Coastal states account for 7 of the 10 most expensive states to live.
How We Rank Housing Affordability in Each State
Home affordability is measured by comparing the percentage of household income required for mortgage payments. Our analysis ranks all 50 states from most to least affordable, considering both median home prices and median household incomes.
Rank ↕ | State ↕ | Median Home Price ↕ | Median Income ↕ | Monthly P+I ↕ | Monthly PITI ↕ | Housing Ratio ↑ |
|---|---|---|---|---|---|---|
| 1 | Iowa | $258,200 | $71,433 | $1,433 | $1,953 | 32.80% |
| 2 | North Dakota | $307,800 | $76,525 | $1,708 | $2,315 | 36.30% |
| 3 | Indiana | $283,000 | $69,477 | $1,570 | $2,113 | 36.50% |
| 4 | Delaware | $379,900 | $81,361 | $2,108 | $2,521 | 37.19% |
| 5 | Ohio | $280,000 | $67,769 | $1,554 | $2,103 | 37.24% |
| 6 | West Virginia | $253,600 | $55,948 | $1,407 | $1,768 | 37.91% |
| 7 | Minnesota | $376,900 | $85,086 | $2,091 | $2,712 | 38.25% |
| 8 | Michigan | $292,000 | $69,183 | $1,620 | $2,209 | 38.32% |
| 9 | Missouri | $290,600 | $68,545 | $1,613 | $2,243 | 39.27% |
| 10 | Maryland | $465,700 | $98,678 | $2,584 | $3,246 | 39.47% |
| 11 | Alaska | $409,700 | $86,631 | $2,273 | $2,873 | 39.80% |
| 12 | Pennsylvania | $333,400 | $73,824 | $1,850 | $2,450 | 39.83% |
| 13 | Oklahoma | $261,200 | $62,138 | $1,449 | $2,090 | 40.36% |
| 14 | Wisconsin | $347,100 | $74,631 | $1,926 | $2,512 | 40.40% |
| 15 | Illinois | $328,900 | $80,306 | $1,825 | $2,712 | 40.52% |
Data Sources: Home prices from Redfin (June 2025); Household incomes from U.S. Census Bureau American Community Survey (2023); Mortgage rates from Optimal Blue, 30-Year Fixed Conforming Mortgage Index (OBMMIC30YF) retrieved from FRED, Federal Reserve Bank of St. Louis, Invalid Date; Property taxes from Tax Foundation (2024); Insurance rates from National Bureau of Economic Research (2021); PMI rates from Arch MI (2024).
Methodology: Monthly mortgage payments estimated using 6.263% mortgage rate on 30 years fixed-rate loans with 10% down payment (90% LTV). Assumes 740 FICO credit score for PMI calculations. PITI includes principal, interest, property taxes (state-specific rates), homeowners insurance (state-specific rates), and PMI (Arch MI rate sheets). Housing payment ratio represents the percentage of monthly income required for total housing payments. Loan term is 30 years for all calculations.
Disclaimer: This calculation does not consider closing costs, escrow requirements, or other one-time expenses associated with home purchases. Actual mortgage payments and terms may vary significantly based on individual circumstances, lender requirements, and market conditions. This is for educational and comparison purposes only.
Understanding Housing Affordability Across America
The data above shows which states offer the most affordable housing markets, but understanding why these differences exist helps you make informed decisions about where to buy a home.
What Makes a State Affordable?
A state is affordable when the cost to buy a home lines up with how much people earn. That doesn't just mean home prices are low. It means incomes are strong enough to support those prices without putting too much pressure on the monthly budget. States with higher wages and more job opportunities can handle higher home prices because people earn enough to afford the payments.
Land also plays a role. States with more available land tend to have cheaper lots, lower construction costs, and more housing supply, which keeps prices stable. States that are less densely populated usually have lower land prices, which helps keep housing costs down.
Local rules matter too. Strict zoning laws and building restrictions can limit how much new housing gets built, which pushes prices up. And finally, market conditions change the picture every day. Mortgage rates, buyer demand, and how many homes are for sale all affect affordability in real time.
That's why we focus on housing payment ratio instead of just home price. The housing payment ratio gives a clearer picture of what it actually costs to own a home in each state based on current income and market data.
Regional Patterns
Some parts of the country offer better value than others. The Midwest stands out, with states like Iowa, Indiana, and Ohio consistently ranking among the most affordable. These states combine solid household incomes with stable housing markets and lower land costs.
The Southeast also shows strong affordability, especially in places like Mississippi, Alabama, and Arkansas where home prices are low and the cost of living is generally more manageable.
On the other end of the spectrum, coastal states tend to be expensive. Places near the ocean typically have higher home prices, limited land, and strong demand from people who want to live in desirable locations.
That demand drives costs up.
In the mountain states, affordability depends on the local economy. Colorado is one of the most expensive states, while others like West Virginia offer lower costs in similar scenic settings. The difference usually comes down to income levels and demand, not geography.
What Else to Think About
Affordability is only part of the story. Buyers still need to think about jobs, lifestyle, and long-term costs. A state might look cheap on paper, but if you can't find work in your field, that state might not be a good fit.
Where you live affects your daily life — from the weather to commute times to how easy it is to get healthcare or find a school that works for your family. Taxes matter too. Some states have low property taxes but high income or sales taxes, and others are the reverse. Differences in tax rates affect how much you spend each month.
Long-term value also matters. A cheaper home in a shrinking town might cost more over time than a more expensive home in a city that is growing. If the plan is to hold on to the home or rent it out later, home price growth can make a difference in your net worth.
How to Use This Data
This page is a starting point. If you're early in the process, use it to spot affordable states that match your budget. If you're already comparing a few places, the data here can help you sort them based on real-world costs. If you're watching the market, you'll see how affordability shifts with interest rates and home prices. And if you're investing, these trends can help you think about where to buy based on value and future potential.
Our goal is to make the housing market easier to understand — and to help you make confident decisions based on what's real today. Once you've narrowed things down to a few states, dig into the local numbers. What matters most isn't just what state you live in — it's what neighborhood you buy in.
Housing Affordability FAQ
Common questions about housing affordability and how to find the most affordable places to buy a home.
What is housing payment ratio and why does it matter?
Housing payment ratio is the percentage of your monthly income that goes toward total housing costs, including mortgage, taxes, insurance, and PMI. It matters because it shows the true cost of homeownership, not just the home price. A lower ratio means housing is more affordable relative to local incomes.
Why do some states have much lower home prices but are not the most affordable?
Home prices alone don't tell the full story. States with low home prices but also low median incomes may not be as affordable as states with higher prices but much higher incomes. The housing payment ratio accounts for both factors to give you the real picture of affordability.
How often does this affordability data update?
Our data updates daily with current market information. We pull live mortgage rates, home prices, and income data to ensure you always see the most accurate housing affordability rankings based on today's market conditions.
What factors besides home price affect housing affordability?
Affordability is affected by median household income in the area, current mortgage rates, property tax rates, homeowners insurance costs, and PMI requirements. We include all these costs in our housing payment ratio calculations.
Should I only look at the most affordable states when buying a home?
Not necessarily. While affordability is important, also consider job opportunities in your field, quality of life factors like schools and healthcare, climate preferences, and long-term growth potential. A state might be affordable but not the right fit for your lifestyle and career goals.
How do I calculate my personal housing affordability?
Use the world's best home affordability calculator to input your specific income, down payment, credit score, and other details. This will give you personalized estimates for how much home you can afford in any state, not just the median data shown here.
Why do coastal states tend to be less affordable?
Coastal states typically have limited land availability, strong demand from desirable locations, and higher property values due to location premiums. Limited supply combined with high demand drives up both home prices and overall housing costs.
Can I find affordable housing in expensive states?
Yes, but you'll need to look in less popular areas or smaller cities within expensive states. Urban areas in affordable states may also have higher costs than rural areas. Always research specific cities and neighborhoods rather than relying solely on state-level data.
All 50 States Ranked by Housing Affordability
Rank ↕ | State ↕ | Median Home Price ↕ | Median Income ↕ | Monthly P+I ↕ | Monthly PITI ↕ | Housing Ratio ↑ |
|---|---|---|---|---|---|---|
| 1 | Iowa | $258,200 | $71,433 | $1,433 | $1,953 | 32.80% |
| 2 | North Dakota | $307,800 | $76,525 | $1,708 | $2,315 | 36.30% |
| 3 | Indiana | $283,000 | $69,477 | $1,570 | $2,113 | 36.50% |
| 4 | Delaware | $379,900 | $81,361 | $2,108 | $2,521 | 37.19% |
| 5 | Ohio | $280,000 | $67,769 | $1,554 | $2,103 | 37.24% |
| 6 | West Virginia | $253,600 | $55,948 | $1,407 | $1,768 | 37.91% |
| 7 | Minnesota | $376,900 | $85,086 | $2,091 | $2,712 | 38.25% |
| 8 | Michigan | $292,000 | $69,183 | $1,620 | $2,209 | 38.32% |
| 9 | Missouri | $290,600 | $68,545 | $1,613 | $2,243 | 39.27% |
| 10 | Maryland | $465,700 | $98,678 | $2,584 | $3,246 | 39.47% |
| 11 | Alaska | $409,700 | $86,631 | $2,273 | $2,873 | 39.80% |
| 12 | Pennsylvania | $333,400 | $73,824 | $1,850 | $2,450 | 39.83% |
| 13 | Oklahoma | $261,200 | $62,138 | $1,449 | $2,090 | 40.36% |
| 14 | Wisconsin | $347,100 | $74,631 | $1,926 | $2,512 | 40.40% |
| 15 | Illinois | $328,900 | $80,306 | $1,825 | $2,712 | 40.52% |
| 16 | Alabama | $300,000 | $62,212 | $1,665 | $2,124 | 40.96% |
| 17 | Louisiana | $269,700 | $58,229 | $1,497 | $2,009 | 41.41% |
| 18 | Kentucky | $283,100 | $61,118 | $1,571 | $2,140 | 42.03% |
| 19 | South Dakota | $338,300 | $71,810 | $1,877 | $2,548 | 42.57% |
| 20 | Nebraska | $308,200 | $74,590 | $1,710 | $2,665 | 42.87% |
| 21 | Arkansas | $283,100 | $58,700 | $1,571 | $2,158 | 44.12% |
| 22 | Kansas | $312,500 | $70,333 | $1,734 | $2,592 | 44.22% |
| 23 | Georgia | $391,200 | $74,632 | $2,171 | $2,761 | 44.39% |
| 24 | Texas | $357,000 | $75,780 | $1,981 | $2,804 | 44.40% |
| 25 | Virginia | $485,400 | $89,931 | $2,694 | $3,399 | 45.36% |
| 26 | Mississippi | $272,900 | $54,203 | $1,514 | $2,049 | 45.37% |
| 27 | Vermont | $426,500 | $81,211 | $2,367 | $3,102 | 45.84% |
| 28 | Wyoming | $410,600 | $72,415 | $2,278 | $2,799 | 46.38% |
| 29 | Maine | $416,000 | $73,733 | $2,308 | $2,886 | 46.97% |
| 30 | New Hampshire | $534,600 | $96,838 | $2,967 | $3,859 | 47.82% |
| 31 | Utah | $556,100 | $93,421 | $3,086 | $3,725 | 47.85% |
| 32 | South Carolina | $388,300 | $67,804 | $2,155 | $2,726 | 48.24% |
| 33 | North Carolina | $395,800 | $70,804 | $2,196 | $2,852 | 48.34% |
| 34 | Nevada | $477,100 | $76,364 | $2,647 | $3,124 | 49.09% |
| 35 | Arizona | $445,400 | $77,315 | $2,472 | $3,165 | 49.13% |
| 36 | Connecticut | $498,900 | $91,665 | $2,768 | $3,760 | 49.23% |
| 37 | District of Columbia | $700,000 | $108,210 | $3,884 | $4,442 | 49.26% |
| 38 | Florida | $410,000 | $73,311 | $2,275 | $3,097 | 50.69% |
| 39 | Tennessee | $406,600 | $67,631 | $2,256 | $2,859 | 50.73% |
| 40 | New Mexico | $372,600 | $62,268 | $2,068 | $2,688 | 51.81% |
| 41 | Rhode Island | $534,400 | $84,972 | $2,965 | $3,782 | 53.41% |
| 42 | Idaho | $495,100 | $74,942 | $2,747 | $3,350 | 53.64% |
| 43 | New Jersey | $583,000 | $99,781 | $3,235 | $4,485 | 53.94% |
| 44 | Oregon | $529,500 | $80,160 | $2,938 | $3,609 | 54.03% |
| 45 | Colorado | $605,600 | $92,911 | $3,361 | $4,371 | 56.45% |
| 46 | Washington | $665,400 | $94,605 | $3,692 | $4,561 | 57.85% |
| 47 | Massachusetts | $696,000 | $99,858 | $3,862 | $4,846 | 58.24% |
| 48 | Hawaii | $761,000 | $95,322 | $4,223 | $4,668 | 58.76% |
| 49 | Montana | $509,100 | $70,804 | $2,825 | $3,479 | 58.96% |
| 50 | New York | $590,000 | $82,095 | $3,274 | $4,269 | 62.40% |
Data Sources: Home prices from Redfin (June 2025); Household incomes from U.S. Census Bureau American Community Survey (2023); Mortgage rates from Optimal Blue, 30-Year Fixed Conforming Mortgage Index (OBMMIC30YF) retrieved from FRED, Federal Reserve Bank of St. Louis, Invalid Date; Property taxes from Tax Foundation (2024); Insurance rates from National Bureau of Economic Research (2021); PMI rates from Arch MI (2024).
Methodology: Monthly mortgage payments estimated using 6.263% mortgage rate on 30 years fixed-rate loans with 10% down payment (90% LTV). Assumes 740 FICO credit score for PMI calculations. PITI includes principal, interest, property taxes (state-specific rates), homeowners insurance (state-specific rates), and PMI (Arch MI rate sheets). Housing payment ratio represents the percentage of monthly income required for total housing payments. Loan term is 30 years for all calculations.
Disclaimer: This calculation does not consider closing costs, escrow requirements, or other one-time expenses associated with home purchases. Actual mortgage payments and terms may vary significantly based on individual circumstances, lender requirements, and market conditions. This is for educational and comparison purposes only.
Next Steps for Homebuyers
Mortgage terms are different everywhere. Your credit score, down payment, and especially your lender determine your mortgage rate and monthly payment. Always compare mortgage lenders to make sure you save money. Learn the strategies lenders use and how to respond in our Flip the Script guide.
See how much home you could afford to buy.Compare lenders in your state.
Research Methodology
How We Calculate Housing Affordability
The Housing Payment Ratio measures how affordable it is to buy a home in each U.S. state. It shows what percentage of a household's monthly income that goes toward total housing costs, not just the mortgage.
Housing Payment Ratio Formula
Housing Payment Ratio = (Monthly PITI Payment ÷ Monthly Household Income) × 100
What Is Included in PITI?
| Component | Description |
|---|---|
| Principal & Interest | Based on a 30-year fixed-rate mortgage and current interest rates |
| Property Taxes | Calculated using state-specific property tax rates |
| Insurance | Estimated homeowner's insurance cost by state |
| PMI | Private mortgage insurance, where applicable |
Key Assumptions
- 10 percent down payment
- 30-year fixed-rate mortgage
- 740 credit score
- Median home price and median household income for each state
This approach provides a more complete view of affordability by considering income, cost of living, and local market factors, not just home prices. For specific home affordability calculations by state or address, make sure to check out the world''s best home affordability calculator.
Data Sources and Update Frequency
This study automatically updates daily with new market data so you always get the most accurate housing affordability rankings. Our analysis pulls live data from:
- Mortgage rates from Federal Reserve Economic Data (FRED). Federal Reserve Economic Data (FRED) provides the most reliable mortgage rate tracking
- Home prices from Redfin, a national real estate brokerage using median sale prices.
- Household incomes from U.S. Census Bureau American Community Survey (2023 data). U.S. Census Bureau American Community Survey data represents the gold standard for household income statistics
- Property taxes from Tax Foundation state-specific effective tax rates
- Insurance costs from National Bureau of Economic Research data on state-specific premiums
- PMI rates from actual mortgage insurer rate sheets
The rankings on this page reflect today's actual market conditions -- not outdated reports. As mortgage rates change, home prices fluctuate, and more, our affordability calculations update automatically to show the current most affordable states to buy a house.
Loading...Limitations and Considerations
While our analysis provides valuable insights, understand these limitations:
Median Values: We use median home prices and incomes, which represent the middle value, not averages. Your personal price point may differ significantly.
Local Variations: State-level data doesn't capture city or neighborhood differences. Real estate is local. Urban areas within affordable states may have higher costs.
Additional Costs: Our calculations don't include closing costs, maintenance, utilities, or HOA fees that vary by location.
Personal Factors: Your credit score, down payment amount, loan type, and choice in lender will affect your actual mortgage terms and payments.
Educational Purpose Disclaimer
This research is designed to help home buyers understand housing affordability across different states and make informed decisions about where to buy a home. We are not a mortgage lender, and this information does not constitute an offer to lend money or provide mortgage services. The data presented here is for educational purposes only.
When you're ready to buy a home, we encourage you to work with local real estate professionals and mortgage lenders who can provide personalized guidance based on your specific financial situation and goals.
Tools for Further Analysis
Make confident decisions about your home purchase with our suite of easy-to-use calculators. Each tool is designed to give you clear, personalized answers so you know exactly where you stand.
The World's Best Home Affordability Calculator Find out how much home you may afford in any state. Enter your income, down payment, and other details to see a personalized price range and estimated monthly payment. This calculator helps you set a realistic budget before you start shopping.
The World's Best Mortgage Calculator Estimate your monthly mortgage payment, including principal, interest, taxes, and insurance. Adjust the numbers to see how different loan amounts, interest rates, and down payments affect your payment.
The World's Best Rent vs Buy Calculator Compare the long-term costs of renting versus buying a home in your area. See how your monthly rent stacks up against a potential mortgage, and get a clear picture of which option may be right for you.
These tools may help you compare options and prepare for your home purchase.
