Cheapest State to Buy a House

Thinking about buying a house? Well, we must say, that’s a smart move!

But keep in mind that US home prices vary by state, as numerous factors are in question. Location, home size, economy, and the local market are just some of them.

On the other side, there’s your budget. With taxes to pay, kids to educate, and groceries to buy, you’re left searching for the cheapest state to buy a house.

Luckily, you’re on the right page.

So, keep reading and find your ideal state with the lowest home prices in the US.

10 Cheapest States to Buy a Home in 2022

Statistics show that it takes an average of eight weeks for homebuyers to find a home. Fortunately, we can save you some time.

Now, check out the states with the cheapest houses, starting from the lowest-priced ones.

And, a little hint from us — the most affordable states to buy a house are in the southern parts of the US.

1. West Virginia

(Charleston, WV)

According to Zillow’s research from August 2022, West Virginia offers the cheapest housing in the US — the typical home value is $140,098.

Other than that, there are a few things you should be aware of if you consider buying a house in West Virginia. Take a look:

• The real estate tax rate is 0.58%.
• The median monthly mortgage payment is $1,023.
• The average mortgage rate is 4.90%.
• West Virginia’s cost of living index for the second quarter of 2022 is 88.5.
• The median household income is $46,836 per year.
• The median home size is 1,797 square feet.
• The average annual home insurance is $1,089 for a home with a policy of $250,000 in dwelling coverage.

But, enough with the numbers. Let’s take a peek at the state’s charm.

In West Virginia, avid outdoor sports enthusiasts can enjoy activities such as river rafting and mountaineering. Dubbed the Switzerland of America, West Virginia is 75% covered in forests and offers picturesque scenery. Also, the state has a reputation for having some of the friendliest people around.

On the downside, living in West Virginia means you will likely be a long way from a large, modern city. Also, the job market in West Virginia can be somewhat challenging, although the state’s unemployment rate has recently evened out with the national average.

2. Mississippi

(Jackson, MS)

Next in line is Mississippi, with an average house value of $168,366.

But there are other factors you need to consider before buying a house there. See for yourself:

• The state’s real estate tax rate is 0.81%.
• The median monthly mortgage payment is $1,134.
• Mississippi has the lowest cost of living index — 84.9, compared to the national average of 100.
• The median household income is $46,637 per year.
• A homebuyer can expect to get a house with a median size of 2,049 square feet.
• The average annual home insurance payment is $1,840.

For admirers of history, Mississippi is just the right place, as there are 40 national historic sites. Additionally, the state has 24 state parks, with Buccaneer, Tishomingo, and LeFleur’s Bluff being the most popular. Of course, we can’t forget the Mississippi river, which gave the state its name.

Yet there are some cons of living in Mississippi. The biggest one is the high poverty rate – 19.6%. In fact, this is the highest rate in the US. Another grim aspect is the extreme weather. Due to its location on the Gulf Coast, Mississippi is hit by around 50 tornadoes a year.

3. Arkansas

(Little Rock, AR)

We’re continuing with Arkansas, where the typical home value is $180,819.

Here are more facts worth knowing about Arkansas:

• The real estate tax rate is 0.62%.
• The median mortgage amount is $1,017 per month.
• Arkansas’ cost of living index is 89.9.
• The median annual family income is $50,784.
• The state’s median house size is 1,887 square feet.
• The average annual home insurance is $2,104.

Other than being among the cheapest states to buy a house, do you want to know more interesting things about Arkansas?

Well, the state is known for its massive spinach output, with approximately 60 million pounds of this vegetable coming from Arkansas. Moreover, the yummy cheese dog is born in the state’s capital city. And lastly, the biggest rice producer among all 50 US states is Arkansas. So, the state is definitely a good choice for food lovers.

There are some downsides you might want to consider, though. Despite its lowest cost of living, the state has high sales tax rates, such as paying a 10% tax rate for consuming alcoholic products at restaurants. Also, Arkansas has rural nature, which has a good impact on agriculture. Yet that’s the reason why the state has a lack of public transportation. Therefore, going from one city to another is quite difficult, especially at night.

4. Oklahoma

(Oklahoma City, OK)

The state of Oklahoma is next for analysis. Its typical home value is $184,009.

But, before buying a house in Oklahoma, you might want to know more facts. Have a peek:

• The property tax rate is 0.90%.
• The median mortgage payment is $1,214 per month.
• Oklahoma’s cost of living index is at 85.7.
• The median family income is $60,096 per year.
• Houses in Oklahoma have a median size of 1,869 square feet.
• Oklahoma has the most expensive insurance for homeowners, with a cost of $3,593 per year.

Do you want to know what the best thing about having a house in Oklahoma is? You get to enjoy the variety of maple, ponderosa pine, and sweetgum trees all around you. Also, the state’s summer destination, Turner Falls, is a very popular one among tourists, where swimming and hiking are the top activities.

But, something unpopular among tourists is Oklahoma’s bad weather — it can change drastically. Summers are too hot, and winters have a lot of ice storms. One more thing worth knowing is Oklahoma’s lack of big cities. You won’t find a metropolis to live in. But, those who favor living in a mid-size city might like the state of Oklahoma.

5. Iowa

(Des Moines, IA)

The last state with a typical home price below $200,000 is Iowa, where the average house value is $193,295.

Keep reading for more facts:

• The property tax rate is 1.57%.
• The median monthly mortgage amount is $1,234.
• Iowa’s cost of living index is 89.
• The median annual household income is $72,429.
• The median size of houses in Iowa is 1,611 square feet.
• The annual home insurance is $1,290 on average.

The fact that Iowa is one of the safest states to live in will definitely help you decide if buying a house there is the right thing for you. Also, the wide range of parks and recreational facilities, as well as the numbered job opportunities, make the state a desirable place to live.

Unfortunately, the state has some cons. The winters are too cold, with the possibility of reaching -50°F. Also, most cities don’t offer many entertainment places, and there aren’t major sports teams. Perhaps these are the reasons why Iowa is ranked among the most boring states in the US.

6. Kentucky

(Frankfort, KY)

A typical home in Kentucky has a price of $200,114.

What else is there to know about Kentucky before buying a house there? Let’s see:

• The property tax rate is 0.86%.
• The state’s median mortgage payment is $1,158 per month.
• Kentucky’s cost of living index is 95.2.
• The median annual income is $55,629 per household.
• Houses have a median size of 1,866 square feet of living space.
• Home insurance is an average of $1,820 per year.

Kentucky is home to many sports — football, horse racing, baseball, soccer, and more. Additionally, a lot of NBA players come from the state, and that’s why Kentucky fans are so ultras.

Now, let’s check out the state’s natural beauties. Have you heard of moonbow? Well, instead of a rainbow, the state’s Cumberland Falls are the one place people can find a moonbow created by the moon. One more bonus fact, Kentucky’s national park Mammoth Cave has the longest cave system worldwide.

But again, one more state with high sales tax rates. Additionally, public transportation is bad in rural areas. And there are some problems with the infrastructure — the state is known for its bad roads and neighborhood infrastructure. So, before moving to Kentucky, look well into your potential new neighborhood and area.

7. Kansas

(Topeka, KS)

What does data show on Kansas? Its typical house value is $208,591.

And that’s not all. Keep reading to find out more about “The Sunflower State”:

• The state’s property tax rate is 1.41%.
• The median monthly mortgage payment is $1,349.
• Kansas has an 86.4 cost of living index.
• The median family income is $75,979 yearly.
• The median size of houses in Kansas is 2,015 square feet of living space.
• The annual average home insurance costs $2,800.

Kansas is home to rivers, rocks, parks, protected areas, and rare plant species. The Monument Rocks are the state’s most popular attraction dating 80 million years back. And when it comes to the green area, Kansas has rich biodiversity and many state parks, with different rivers passing across the state.

Because of the state’s wide range of natural beauties, rattlesnakes can be a problem. They live in the rocks and the fields, so you should be careful when having an off-road walk. Also, you should be aware that tornados are a thing in Kansas during the spring season.

8. Alabama

(Montgomery, AL)

The typical home value in Alabama is $211,090.

In addition, take a look at the following facts:

• The real estate tax rate is 0.41%.
• The state’s median mortgage amount is $1,147 a month.
• Alabama’s cost of living index is 87.5.
• The median household income is $56,929 per year.
• The median size of houses is 2,005 square feet.
• The state’s average home insurance is $1,597 per year.

An interesting fact is that 70% of Alabama is covered in forests, with four of them spread out across the whole state. So, it’s a perfect place for nature lovers to buy a house and enjoy the green area’s perks. One more exceptional fact – there is an actual place in Alabama called “Sweet home, Alabama”.

Sadly that you need to read this, but the state is filled with way too many cockroaches. Perhaps the fault has the forests? But that’s not all. Tornadoes and hurricanes might occasionally occur. So, if you’re moving to Alabama, make sure you have a backup plan to protect yourself and your family from these weather events.

9. Ohio

(Columbus, OH)

What do we know about Ohio? Well, the typical house value is $213,335.

Other than that, take a look at more facts about Ohio — one of the cheapest states for real estate:

• The property tax rate is 1.56%.
• The median monthly mortgage payment is $1,269.
• Ohio’s cost of living index of 92.
• The median family income is $62,689 per year.
• Houses in Ohio have a median size of 1,716 square feet of living space.
• Home insurance is an average of $1,119 per year.

Ohio is home to a rich agricultural sector and various industries, such as oil, gas, solar energy, and wind power. The state is also known for its solid automobile production. But, among the many industries and sectors, Ohio is also successful in fuel cell technology.

Unfortunately, the state has some disadvantages. For example, summers are too hot and humid, and winters are too cold and wet. Also, public transportation might be a problem in rural areas. And, not to mention how buses are prone to breakdowns, as there is a lack of proper maintenance.

10. Louisiana

(Baton Rouge, LA)

Last on our list of the cheapest places to buy a house is Louisiana, with a median home price of $216,350.

Now, let’s see what else is important to know about Lousiana and buying a home there:

• The state’s property tax rate is 0.55%.
• The median mortgage payment is $1,267 per month.
• Lousiana’s cost of living index is 92.8.
• The median annual household income is $57,206.
• The state’s median house size is 1,919 square feet.
• The annual average home insurance is $2,009.

The state of Louisiana is ideal for people who love summertime, as the summers are long and hot, and the winters are short. Also, agriculture plays a huge part in the state’s economy, where rice, soybeans, cotton, and sugarcane are the main products.

But the state’s beauty doesn’t end here. Tourism is widely spread throughout Louisiana. Tourists get to enjoy jazz, blues, country, and gospel music across the whole state. Lastly, let’s not forget the delicious local food.

No matter how lovely the state is, there are some downsides. The economy is weak, and the poverty rate is high. The education levels are low, and the crime levels are high. So, make sure life in Louisiana is worth it before moving there.

Wrap Up

Now you know which states offer the cheapest houses in the USA.

In fact, now you are aware of the home insurance costs, taxes, median house size, and more statistics that can help you determine which state suits you best.

So, have you decided yet? Which cheapest state is the best for you to buy a house?