West Virginia is the cheapest state to buy a home. A homebuyer can expect to get 1,792 square feet of living space for that price. Are you looking for the cheapest state to buy a home? We use income data and home prices to determine the 15 most affordable states in the country. Keep reading to see which states are at the top and plan your next interstate move.
This Midwestern state is the country's largest producer of corn, and its miles of farmland are a testament to that. Still, there are a lot of big cities to live in, too. Iowa's largest real estate markets include Des Moines, Iowa City and Cedar Rapids. Another Midwestern state, Indiana, is flat and full of farmland.
Its largest cities are Indianapolis, Fort Wayne and Bloomington, and major universities such as Purdue, Ball State and Indiana University are located there. Ohio, birthplace of the Wright brothers and home of the Rock and Roll Hall of Fame, has a lot to offer. The state is also big on soccer and most residents cheer for the Cincinnati Bengals, the Cleveland Browns or the Ohio State Buckeyes. If its nickname Cornhusker State is any indication, Nebraska is big on growing corn.
Its livestock industry is booming, and it is often also referred to as the “Beef State”. The largest cities in Nebraska are Omaha and Lincoln. Kansas is known as the nation's “granary” for its abundant grain and wheat production. Kansas City, Wichita and Topeka are the largest cities in the state.
Mississippi is known as the Magnolia State thanks to its flowering tree. It is also a major producer of catfish and is full of Southern charm. Its largest cities are Jackson and Biloxi. Aptly named the Mountain State, West Virginia is located in Appalachia.
It is known for its rolling hills, valleys and mountains and for all the outdoor activities that come with them. 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 of the applause at the University of Oklahoma or the state of Oklahoma.
Arkansas is known for its acres of lakes, as well as its hot springs and rivers. The state also produces the largest amount of poultry in the country and is known as “The Land of Opportunity.”. California is known for its high housing costs, so its place on our list of the most expensive is no surprise. It takes almost 32% of median household income to be able to buy a home here.
For the purpose of this study, we assume that all home mortgages were purchased with a 30-year loan and a four percent interest rate. If you're looking to improve your Southern hospitality skills, Tennessee may be the place for you. Tennessee is full of musical hotspots, such as Nashville, the nation's country music capital, and Memphis, the birthplace of rock 'n' roll and blues. With a cost of living considerably lower than the national average, it makes sense why Illinois ranks high on our list.
Illinois is also home to the Windy City: Chicago offers all the perks of urban life, with plenty of restaurants to try classic Chicago-style pizza. With a higher movement in single-family home prices, it's clear that many Americans see Illinois as one of the best states to live in. Ohio may not be on your mind when it comes to moving, but there's more there than meets the eye. Ohio offers small towns, bustling cities, and outdoor activities to meet everyone's needs.
As one of the largest states in the U.S. UU. If you like Southern cuisine and vibrant culture, this state knows no bounds. Plus, with a low cost of living and no income taxes, it makes it a cheaper option compared to nearby states like New Mexico.
Virginia is steeped in rich American history, from Jamestown to colonial Williamsburg. In addition, it offers mountainous landscapes in areas such as Blue Ridge and beaches in coastal cities such as Chesapeake and Portsmouth. Beautiful landscapes, low cost of living, and historic places to explore make Virginia a difficult state to beat. The best homes in highly desirable locations tend to appreciate faster, and they also hold their value when the market turns.
5 Once you've established yourself in your ideal state, research the best neighborhoods with factors such as education systems, crime rates, and average home value. This will help you narrow down your list of possible areas to investigate when looking for your new home. When buying a home for yourself, buying a smaller, cheaper home in your ideal neighborhood will help you avoid additional taxes and utility costs that would come from a larger home, resulting in a lower cost of living for you in the long run. 6 Meanwhile, a cheaper home may require the buyer to put extra money into repairs and renovations, but the benefit to be gained from those renovations may be greater and can lead to a faster appreciation of the property.
Buying lower or aiming higher depends on each buyer and what they hope to get out of buying a home, 7 Home Buying - 5 minute read Home Buying - 6 minute read Rocket Mortgage, 1050 Woodward Ave. Mississippi is the 34th most populous state in the U.S. And home to nearly 3 million residents. Agriculture and manufacturing are two of the largest industries in the state.
Jackson is the state capital and also the largest metropolitan area in Mississippi. Home to more than 3 million people, Arkansas is the 33rd largest state in the U.S. Agriculture, Manufacturing, and Tourism Help Boost Economy in Arkansas. Little Rock is the capital and also the largest metropolitan area.
NEXSTAR) — The pandemic hasn't been kind to prospective homebuyers: Skyrocketing prices and lack of inventory have made buying a home impossible for some, but for those willing to move, a new study ranking the cheapest states to buy a home may offer some hope. The study projects Tennessee to be the cheapest state to buy a home this year, citing a low cost of living, lack of income taxes and low property taxes. See the full study for the full list of states. There are many reasons why we choose to live in the places we live: convenience, proximity to family and friends, personal preferences, jobs and the like.
One of the most important factors, of course, is affordability. After all, housing is the most important item in most Americans' budgets. Where you live can have a big impact on your finances, for better or worse. To determine which states are the most affordable for homebuyers, we turned to census data.
We looked at median home value, median household income, and the percentage of their monthly income that homeowners with mortgages spend on housing costs. Many experts recommend using the 30% rule to determine how much you should spend on housing. Basically, the rule states that you shouldn't spend more than 30% of your gross income on monthly housing costs. Those who spend more than 30% on these costs are considered “cost burdened”.
In practice, the amount a person must spend each month on housing varies from household to household. However, for our purposes, the 30% rule gives a general idea of how affordable a given area is because it compares median income to average housing costs. Of course, if you search hard enough, you can find a bargain and buy great homes at affordable prices anywhere. But with the national median as a reference point, which it sets in the U.S.
Are they best for budget-conscious buyers? As we see with the 30% rule, true affordability isn't just about which houses cost the least money to buy. Let's say, for example, that you move to an area where home prices are well below the national average, but average incomes are also relatively low. Even though home prices are cheap, if your income is too low, you may still not be able to afford to buy one of those cheap homes. Alternatively, you could move to an area where home prices are higher, but average incomes are also higher to better match the area's cost of living.
All states have affordable housing zones, but if the cost of living is too high, it can be difficult for buyers to realistically afford it, so let's take a look at states that are not only cheap, but also affordable, with below-average housing costs and average monthly housing costs by below the 30% threshold. From the cool vibe of the city of Indianapolis, to the trendy college town of Bloomington, to an area affectionately known as “the region,” which hosts the wonderfully crazy annual Pierogi Fest and is a short train ride from Chicago, the Hoosier State has a lot to offer. It's also the most affordable place to live on our list, with a 24% housing cost ratio. Even though the state is the nation's top producer of corn, Iowa isn't just rural farmland.
It's a great place to live for those looking for that “urban living experience” with a more affordable cost of living and friendlier neighbors. There's the arts and culture of Cedar Rapids, the shopping and dining of nearby Iowa, or the expansive economic opportunity of Des Moines (the state of Iowa has the third lowest unemployment rate in the country), to name a few of Iowa's many large urban areas. Beautiful and mountainous West Virginia is an excellent choice for those who love nature and all the activities that take place in it, such as hiking, fishing or even rafting. In this state, you'll get beautiful natural views no matter where you are.
West Virginia also has a few smaller cities, such as the charming capital of the state of Charleston, for those who don't want to feel so remote. Known for its lakes, rivers and hot springs, Arkansas has a wide range of indoor and outdoor attractions, from 218-mile long hiking trails through the Ozark Mountains to the only active diamond mine in the U.S. For a picturesque setting, the mountain town of Eureka Springs is full of Victorian-style homes, offering boutiques and antique stores, and is known as one of the country's top arts destinations. For a more urban experience, the capital city of Little Rock is a historic downtown area, offering plenty of museums, restaurants, and nightlife to enjoy.
When you think of Kentucky, you can first think of the Kentucky Derby, an annual horse race that has been held in Louisville for nearly 150 years. But Kentucky has a lot to offer beyond horse farms. Good food, hello? Kentucky fried chicken and world-class bourbon are just a few of the things the Bluegrass State is known for. Whether you're looking for a comfortable cottage in the country or a spacious suburban property, there's something for everyone in Kentucky.
In addition to the great weather, Alabama is known for its southern hospitality, so anyone can feel at home here, whether it's in the artist-centric community of Fairhope, the notable home of creatives like Winston Groom and Jimmy Buffett, or downtown Birmingham. Did you know that an unusual number of astronauts come from Ohio? If the idea of raising the next Neil Armstrong doesn't convince him to move his family to Ohio, affordable living, vibrant cities and wide cultural offerings could. Michigan is an extremely diverse state, both in terms of its people and its localities. There's the hustle and bustle of Detroit and its many surrounding suburbs, the eternal freshness of Ann Arbor, the liveliness of Grand Rapids, the charm of Traverse City, the tranquility of the Upper Peninsula, and much more.
Missouri is very affordable, family-friendly, and its cities have offers for all types of interest, whether it's art, shopping or dining. And for outdoor enthusiasts, this state also offers 85 state parks and historic sites, with more than 840 miles of walking and biking trails. Located where the Midwest meets the Great Plains, the state of Nebraska has a lot to offer homebuyers, from a relatively low cost of living to some of the nation's highest average incomes. And while Cornhusker State is best known for its agriculture, there's a lot to experience beyond the obvious plains, sand dunes and rock formations outside, from the bustling Gateway to the West in Omaha to the historic city of Lincoln.
Starting your life to move to a new state is not a decision that should be taken lightly. Just because the price is right doesn't mean you really enjoy living there, so take the time to think about the benefits and drawbacks of an area before moving out of state. Consider the types of activities you enjoy, the transportation options you need, and the style of homes available when choosing a location. What's right for one family may not be right for the next, so as long as you choose a place that fits your needs, you can find the perfect place to live without breaking the bank.
Looking for the cheapest real estate properties in the U.S. It's a great way to save money on your new home, but buyers shouldn't choose a location based solely on price. Still, if you move to a new state, understanding your average real estate costs and your cost of living can help you plan your future budget. Are you thinking about a change of pace? Once you have a location in mind, work with a verified partner agent so you can shop with confidence.
Katie Ziraldo found her love of writing through her experience working with several newspapers, such as the Detroit Free Press. Her financial education stems from her four years as a recruiter, when she learned the ins and outs of each role in the mortgage process. As a writer, she uses that knowledge to create content relevant to homeowners to help them achieve their goals. There are many cities that are affordable and perfect if you like the idea of affordable housing, reasonable living expenses, and lots of entertainment.
Here's a look at several of America's most affordable cities. Find and buy the perfect car or truck from thousands of vehicles, all in one marketplace Wear OS by Google and Google Play are trademarks of Google LLC. We use 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. Whether markets continue to rise or rumors of a recession prove true, affordable housing will continue to be an enormous need.
Experts don't expect mind-blowing home prices in cities across the country to drop anytime soon, so it may be worth considering a move that would provide more homes for your hard-earned money. Regardless of whether or not you choose to move to one of the cheapest states to buy a home, UPNest provides home sellers with the industry's best agent comparison tool to get the best deal on home sales help from top local real estate agents. Kansas and Nebraska are technically tied for fourth place, each costing 11.19% of median household income to buy a home. When it comes to buying in this red-hot market, the mortgage company suggests favoring a better neighborhood than the house itself, whenever possible; the property will have more value when things slow down.
The guidelines present the HomeIA Score, a proprietary index that rates communities based on factors such as housing costs, education and employment. Keep in mind that your particular overhead costs may not reflect your state's averages and medians, as each person's localized housing market, income, credit score, and additional rating factors must be considered. If you're thinking of building your home from scratch, learn which counties are the cheapest to build a home. A variety of laws can affect the amount of money you have left to spend on housing each month and the safety of the money you invest in your home.
A smaller home in a chosen neighborhood can mean long-term savings because it will lead to lower taxes, utility costs, and maintenance. . .