Dan Green

Dan Green

Since 2003, Dan Green has been a leading mortgage lender and respected industry authority. His unwavering commitment to first-time home buyers and home buyer education has established him as a trusted voice among his colleagues, his peers, and the media. Dan founded Homebuyer.com to expand the American Dream of Homeownership to all who want it. .

First-Time Home Buyers Re-Creating The Opening Credits Scene From Full House And Let'S Take A Moment To Pay Homage To The People That Made That Show Great

How We Make Money

Homebuyer.com is your trusted guide to homeownership. Since 2003, our team has offered real-world expertise and advice to tens of millions of U.S. home buyers. Our content stands on its integrity: it's factual, unbiased, and free from outside influences. Read our editorial guidelines.

Homebuyer.com is a mortgage-company-affiliated publisher. We earn compensation when you click specific links on the website, or apply for a mortgage with Homebuyer.com or a partner listed in our comparison tables. Our partners compensate us differently, so we randomize our tables to protect our readers from steering. We may also earn compensation for advertisements on the site, which are indicated clearly. Note that limitations in our software, whether we originate mortgages in your area, and credit factors may affect the offers and comparison tables you see on various parts of this site. We do not include offers for every mortgage product available. Someday, we hope we will.

Trusted Content

Trusted Content

This article was checked for accuracy as of April 3, 2024. Homebuyer.com ensures every piece of information we share reflects the latest in mortgage standards. Learn more about our commitments in our editorial guidelines.

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.

Read our Most Affordable Cities to Buy a House in 2023 for a closer look.

Graphic: A Heatmap That Shows Housing Costs In The U.s. As A Percentage Of Income

Cheapest States To Buy A House, Ranked 1-50

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

Downtown 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

Downtown In 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

Ohio - Homebuyer.com
  • 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

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.

5. Kansas

City Photo In Kansas
  • Median Home Price: $151,900
  • Estimated Monthly Mortgage Payment: $721.70

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.

6. Mississippi

Mississippi - The Birthplace Of America'S Music
  • Median Home Price: $119,000
  • Estimated Monthly Mortgage Payment: $565.38

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

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

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.

9. Michigan

Michigan
  • Median Home Price: $154,900
  • Estimated Monthly Mortgage Payment: $735.95

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

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

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

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

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

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

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.

5 Most Expensive States to Buy a House

Image Of A Home In Hawaii Which Seems Like It Would Be A Nice Place To Live

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.

Click to see today’s current mortgage rates.


Citations

This article, "Cheapest State to Buy a House" draws on the author's professional mortgage experiences and references information found at these authoritative websites:

Changelog

  • April 3, 2024: Rewrote introduction; Replaced graphics; Added tables; Simplified copy; Modified layout.
  • September 2, 2021: Original publish date

What to do next

See how much home you can afford to buy. Use our no-risk Immediate Mortgage Approval and find your mortgage eligibility in an instant.

Get approved here.

       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.

Subscribe to our Newsletter

Be a better buyer. Subscribe now and never miss out on exclusive insights, new market trends, and first-time buyer programs.

Ready to get started?

Finding your dream starts here. Apply in minutes.

Get Pre-approved
© 2021-2024 All rights reserved. Growella Inc d/b/a Homebuyer. Homebuyer.com is powered by Novus Home Mortgage, a division of Ixonia Bank, NMLS 423065. www.nmlsconsumeraccess.org Homebuyer is located at 230 Findlay Street, Cincinnati, Ohio 45214. Novus Home Mortgage, a division of Ixonia Bank, is located at 20225 Water Tower Blvd. Suite 400, Brookfield, WI 53045. We have no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the US Department of Agriculture, or any other government agency. US Government agencies have not reviewed this information and this site is not connected with any government agency. Equal Housing Lender. Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. The receipt of the application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.