Housing affordability remains a major challenge for homebuyers. Home prices have risen for nearly two years, mortgage rates are hovering around 7%, and housing supply is just inching upwards. All of this follows a very difficult 2024, which saw the fewest home sales in nearly 30 years.
As a result, many buyers, especially those from expensive coastal markets, are searching for more affordable places to live. During the pandemic, many people chose the Sun Belt, primarily cities in Florida, Arizona, and Texas. However, as migration patterns shift and the housing boom fades, people have begun looking elsewhere for homes they can afford – notably in the Rust Belt.
But where are homes the most affordable? What are the cheapest states to buy a house? If you’re in the market for a house and looking for an affordable place to live, this is the article for you.
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U.S. market at a glance
| Median sale price: $428,000 | Median household income: $75,538 | Median monthly housing payment: $1,902 |
The 10 cheapest states to buy a house
1. Iowa
- Median sale price: $227,500
- Median household income: $73,147
- Median monthly housing payment: $1,494
Iowa is the cheapest state to buy a house in the U.S. Low house prices, paired with relatively high household incomes and modest taxes, make Iowa an affordable place to live and buy a home.
Iowa is known for its industry and agriculture (more than 85% of the land is farmed), but it’s also home to a diverse range of amenities and cultures. In particular, it’s a great place for those looking for an urban lifestyle just minutes from forests, rivers, and prairies. Des Moines is the state’s capital and largest city.
If you need a bit more convincing, a couple of cities in Iowa will even pay you to move there. Newton, for example, located 35 miles east of the state capital Des Moines, offers cash incentives and a welcome package for qualifying homebuyers. Homes in Des Moines are very affordable, too, sitting at less than half the national average. Some of the cheapest cities to buy a house in Iowa are Waterloo and Dubuque.
Iowa homes for sale | Iowa homes for rent | Iowa apartments for rent
2. Ohio
- Median sale price: $231,400
- Median household income: $69,680
- Median monthly housing payment: $1,472
Ohio is a quintessential Midwestern state and was especially important for manufacturing in the 19th and early 20th centuries. A few of Ohio’s largest cities, including Cleveland and Cincinnati, have particularly deep roots in steel and automotive industries. Many Ohio cities have faced economic challenges for decades, but an influx of businesses, a low cost of living, and affordable home prices have helped fuel a resurgence. House prices have been rising quickly in some cities as a result.
If you’re looking for a home below the national median, most cities in Ohio will fit the bill. Hamilton, a northwestern suburb of Cincinnati, will even pay you to move there if you’re a recent college graduate with outstanding student debt. The cheapest places to live in Ohio are Canton and Youngstown.
Ohio homes for sale | Ohio homes for rent | Ohio apartments for rent
3. Oklahoma
- Median sale price: $236,700
- Median household income: $63,603
- Median monthly housing payment: $1,479
Oklahoma is an icon of the Great Plains. Flat, straight roads stretch for miles, straddling farmlands, cattle ranches, and rural towns that produce billions of pounds of food every year. The state is also home to 39 American Indian tribes, comprising a remarkable 16% of the state’s population. Traces of their history dot the landscape. Oklahoma City is the capital and largest city in Oklahoma, followed by Tulsa.
The Sooner State has the second-lowest cost of living in the country, only bested by West Virginia. Even so, Tulsa is going further to attract homebuyers with remote jobs: they offer a $10,000 grant if you buy a house in town and live there for a year. Importantly, Oklahoma has one of the highest average home insurance premiums in the country.
Most cities in the state have median house prices well below the national average, but Lawton and Enid are among the most affordable places to buy a house in Oklahoma.
Oklahoma homes for sale | Oklahoma homes for rent | Oklahoma apartments for rent
4. West Virginia
- Median sale price: $243,100
- Median household income: $57,917
- Median monthly housing payment: $1,225
West Virginia is a state rooted in nature, steeped in song, and rich with folklore. It’s also an affordable place to live, with house prices nearly half the national average. Most areas of the state also participate in the Ascend West Virginia relocation program, which pays up to $12,000 for remote workers to move there.
Rivers wind through the rolling mountains and lead you to towns like Harpers Ferry, which played host to a famous Civil War-era battle. National parks and untouched trails are among the state’s largest highlights, while a history of mining and logging have shaped much of the culture. Shifting industrial priorities, economic decline, and high poverty are challenges today – but there are efforts to help revitalize the region.
The most affordable places to buy a house in West Virginia are Huntington and Wheeling, while the largest city is its capital, Charleston. If you make the move, make sure to budget for flood insurance, which is increasingly important; rates are the third-highest in the nation.
West Virginia homes for sale | West Virginia houses for rent | West Virginia apartments for rent
5. Michigan
- Median sale price: $248,000
- Median household income: $71,149
- Median monthly housing payment: $1,521
Sometimes called a climate haven for its relatively mild weather and low risk of natural disasters, Michigan is known for its delicious food, waterfront vistas, and industrial history. Manufacturing, primarily automobile-related, has long been Michigan’s main economic driver. Prominent car brands General Motors and Ford are based in the state.
The state has seen a small surge in popularity of late, in part because of international migration, but also because people are looking for an affordable place to live. Many people are moving to the northern parts of the state, and Detroit, Michigan’s largest city, has steadily grown as well. In fact, in the years since Detroit declared bankruptcy, house prices have more than doubled (they have risen 72% since 2020 alone).
The most affordable cities to buy a house in Michigan are Flint, Detroit, and Pontiac, although practically every city sits well below the national average.
Michigan homes for sale | Michigan homes for rent | Michigan apartments for rent
6. Mississippi
- Median sale price: $249,700
- Median household income: $54,915
- Median monthly housing payment: $1,353
Known for bayous, barbecue, and the blues, Mississippi is a deep southern state rich with history and natural beauty. There’s a reason it’s called the Magnolia State, after all. Historic towns, plantations, and farmlands dot the landscape, along with massive forests, its namesake river, and miles of coastline. Jackson is Mississippi’s largest city.
Mississippi as a whole is a very affordable state for homebuyers, with Meridian and Jackson leading the way. However, Mississippi also has the highest poverty rate in the country; 19.5% of residents live below the federal poverty line. High insurance rates and growing natural disaster risks are also a factor.
Regardless, no matter where you live in Mississippi, you’ll be next to centuries of history and likely next door to a great tourist attraction. Vicksburg National Military Park, the Elvis Presley Birthplace, and the Mississippi Petrified Forest are among the best places to check out.
Mississippi homes for sale | Mississippi homes for rent | Mississippi apartments for rent
7. Missouri
- Median sale price: $251,900
- Median household income: $68,920
- Median monthly housing payment: $1,478
Missouri, the Show-Me State, is the seventh-cheapest state to buy a house in the U.S., home to iconic cities and bountiful nature. But perhaps most peculiarly, it’s famous for its oversized objects, including its iconic arch, a giant eight-ball, three balls of twine, and a massive chess piece. One thing that’s not oversized, though, are its prices. The state has a very low cost of living (tied for third-lowest) and a property tax of just 0.8%.
The state’s largest cities, Kansas City and St. Louis, are home to well-known amenities like the Nelson-Atkins Museum of Art and the restaurants along the Delmar Loop. Among the vast plains in the center of the state, you’ll find ancient caves at Meramec State Park and plenty of outdoor recreation at the Lake of the Ozarks.
A few of the most affordable cities in Missouri are St. Joseph, Joplin, and Florissant, but nearly everywhere costs less than the national average.
Missouri homes for sale | Missouri homes for rent | Missouri apartments for rent
8. Louisiana
- Median sale price: $252,600
- Median household income: $60,023
- Median monthly housing payment: $1,543
Louisiana is a colorful melting pot of histories and cultures, having been heavily influenced by Native American, French, and African peoples. In fact, Gumbo, an iconic Louisiana dish, is a literal melting pot that takes inspiration from these cultures.
Louisiana is best known for its musical heritage (jazz) and festivals (Mardi Gras), but that only scratches the surface of the Pelican State. Coastal marshes, swamps, forests, and waterfalls are all waiting to be explored, along with beautiful antebellum mansions and modest Creole cottages. New Orleans is Louisiana’s largest city, situated along the Mississippi River and Lake Pontchartrain.
Among the most affordable cities in Louisiana are Lake Charles and Shreveport. However, beware of a growing insurance crisis, high taxes, and hot, stormy summers.
Louisiana homes for sale | Louisiana homes for rent | Louisiana apartments for rent
9. Indiana
- Median sale price: $255,100
- Median household income: $70,051
- Median monthly housing payment: $1,355
Indiana is a cornerstone of the industrial and agricultural sectors. Known as the Crossroads of America, Indiana has been a leading producer of steel, soybeans, and corn for over a century, while also serving as a transportation hub for goods traveling through the state. Vehicles, machinery, and chemicals are the state’s largest exports today.
Apart from its growing economy, plenty of attractions and benefits draw residents to the state every year. The Indianapolis Motor Speedway, home to the Indianapolis 500, is the most well known, but the Indiana Dunes National Park and Indiana State Fair are other must-see spots. Indianapolis is the largest city in Indiana and where most amenities are located.
While most cities in Indiana have sale prices well below the national average, two of the most affordable cities are Gary and Muncie.
Indiana homes for sale | Indiana homes for rent | Indiana apartments for rent
10. Arkansas
- Median sale price: $256,100
- Median household income: $58,773
- Median monthly housing payment: $1,297
Arkansas lives up to its nickname of The Natural State; natural beauty lies around every corner. Highlights include the majestic Ozark and Ouachita Mountains, the winding Buffalo National River – perfect for canoeing and fishing – and Hot Springs National Park, a unique natural wonder. Historic towns like Arkansas Post and Georgetown are nestled among the wilds, while Little Rock and Fayetteville are the state’s largest cities.
The most affordable cities to buy a house in Arkansas are Pine Bluff and Hot Springs, in the center of the state. For those looking to make the move but needing a push, Texarkana, which straddles the Arkansas-Texas border, is offering an incentive package worth over $17,000 to remote workers.
Unsurprisingly, with wide open spaces comes a thriving agriculture industry. Rice and cotton are major players, but poultry is where the state thrives. Arkansas is actually the country’s largest exporter of chicken, and over 6,500 farms in the state produce some kind of poultry (led by Tyson). Aerospace manufacturing is also a large industry.
Arkansas homes for sale | Arkansas homes for rent | Arkansas apartments for rent
Complete median sale price rankings by state
| Rank | State | Median Sale Price |
| 1 | Iowa | $227,500 |
| 2 | Ohio | $231,400 |
| 3 | Oklahoma | $236,700 |
| 4 | West Virginia | $243,100 |
| 5 | Michigan | $248,000 |
| 6 | Mississippi | $249,700 |
| 7 | Missouri | $251,900 |
| 8 | Louisiana | $252,600 |
| 9 | Indiana | $255,100 |
| 10 | Arkansas | $256,100 |
| 11 | Kansas | $262,500 |
| 12 | Kentucky | $265,200 |
| 13 | Nebraska | $275,100 |
| 14 | Alabama | $277,900 |
| 15 | North Dakota | $278,800 |
| 16 | Illinois | $284,000 |
| 17 | Pennsylvania | $287,400 |
| 18 | Wisconsin | $302,700 |
| 19 | South Dakota | $317,400 |
| 20 | Texas | $335,600 |
| 21 | Minnesota | $342,400 |
| 22 | Delaware | $343,300 |
| 23 | New Mexico | $345,100 |
| 24 | Georgia | $359,900 |
| 25 | North Carolina | $367,600 |
| 26 | South Carolina | $377,600 |
| 27 | Tennessee | $383,400 |
| 28 | Alaska | $388,700 |
| 29 | Wyoming | $409,600 |
| 30 | Florida | $410,600 |
| 31 | Maryland | $411,000 |
| 32 | Vermont | $414,400 |
| 33 | Connecticut | $415,500 |
| 34 | Maine | $415,800 |
| 35 | Virginia | $425,600 |
| 36 | Arizona | $454,600 |
| 37 | Nevada | $455,000 |
| 38 | Idaho | $480,500 |
| 39 | New Hampshire | $487,700 |
| 40 | Rhode Island | $506,600 |
| 41 | Oregon | $507,900 |
| 42 | New Jersey | $538,300 |
| 43 | Montana | $540,700 |
| 44 | Utah | $566,800 |
| 45 | New York | $571,300 |
| 46 | Washington | $606,000 |
| 47 | Colorado | $607,300 |
| 48 | Massachusetts | $622,100 |
| 49 | Hawaii | $779,000 |
| 50 | California | $785,200 |
Methodology
States were ranked by median sale prices in March 2025, according to Redfin data. Median household income and median monthly housing payment data (including mortgage) is from the U.S. Census Bureau. Cost of living data comes from Redfin and the Council for Community and Economic Research via the Missouri Economic Research and Information Center. Tax rates come from the Tax Foundation.
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