The Cheapest US States to Buy a House in 2022

By: ROS Team

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Home affordability varies by state and region due, in part, to different tax rates, utilities, and salary ranges. That’s why finding a cheap state to buy a house in is not that easy.

Are you searching for the cheapest state to buy a house? We have done some research and identified some of the most affordable real estate states in the USA. Here is our list of the cheapest places to buy a house.

1. West Virginia

Median Home Value: $122,342
Average Rent: $912

West Virginia

West Virginia is one of the cheapest real estate states and the 40th most populated state in the U.S. with a population of less than 1.8 million. West Virginia is a beautiful state where the most prominent industries are tourism and natural resources. Huntington-Ashland is the largest metropolitan area, though. The most affordable cities to buy a house in West Virginia are Clarksburg, Huntington, Beckley, and Bluefield.

2. Mississippi

Median Home Value: $151,190
Average Rent: $989

Mississippi

Mississippi is another one of the cheapest states to buy a house. Mississippi is home to almost 3 million people and is the 34th most populated state in the U.S. Major sources of income are agriculture and manufacturing. Jackson is the largest metropolitan area and is also the state’s capital. The most affordable cities to buy a house in Mississippi are in Jackson, Meridian, Greenville, and Gulfport.

3. Arkansas

Median Home Value: $161,570
Average Rent: $926

Arkansas

Arkansas is the 33rd largest state in the U.S. with more than 3 million people as of 2018. Agriculture, manufacturing, and tourism play a significant role in fueling Arkansas’s economy. The state capital is Little Rock; it’s also the state’s major metropolitan city. Little North Rock is among the cheapest cities to buy houses in the state, along with Texarkana, Fort Smith, and Pine Bluff.

4. Oklahoma

Median Home Value: $162,409
Average rent: $1,015

Oklahoma

Oklahoma is home to less than 4 million people, making it the 28th most populated state in the U.S. Agriculture, resources sectors, and manufacturing help drive the economy in Oklahoma. The cheapest cities to buy a home in Oklahoma are Lawton, Shawnee, Muskogee, and Enid.

5. Iowa

Median Home Value: $177,300
Average rent: $1,022

Iowa

Iowa is also one of our cheap real estate states. Iowa is the 31st most populated state in the U.S. with more than 3.1 million people. Agriculture, manufacturing, natural resources sectors, information technology, and biotechnology drive Iowa’s diverse economy. Omaha Bluffs is the state’s largest metropolitan city and the state capital is Des Moines. Iowa’s cheapest cities to buy a house are Waterloo, Davenport, Council Bluffs, and Sioux City.

6. Kentucky

Median Home Value: $179,000
Average rent: $1,028

Kentucky

Home to more than 4.5 million people, Kentucky is the 26th most populated state in the U.S. Like many other states, agriculture, manufacturing, and natural resources comprise a significant part of Kentucky’s economy. Frankfort is the state’s capital, and Louisville is Kentucky’s central metropolitan area. Hopkinsville, Owensboro, Covington, Bowling Green are cities with the most affordable house prices.

7. Alabama

Median Home Value: $184,021
Average rent: $1,055

Alabama

If you’re looking for the cheapest places to buy a house, consider Alabama. It is the 24th most populated state in the U.S. with more than 5 million people. Agriculture, manufacturing and the healthcare and financial sectors help keep the economy of Alabama prosperous. Birmingham is the largest metropolitan area in Alabama, and the capital city is Montgomery. Both cities are also among the cheapest cities to buy a house in the state, along with Gadsden and Phoenix city.

8. Kansas

Median Home Value: $191,101
Average rent: $1,040

Kansas

Kansas is the 35th largest state in the U.S. due to its 3 million people. Kansas’s economy relies on its agriculture, manufacturing, and natural resources. The largest metro area in Kansas is Kansas City, and its capital city is Topeka. Kansas City, Salina, and Hutchinson are the cheapest cities to buy houses in Kansas.

9. Ohio

Median Home Value: $193,143
Average rent: $1,028

Ohio

Ohio’s population of 12 million people makes it the 7th largest state in the U.S. The state’s financial services and manufacturing are critical sectors for Ohio’s economy. Columbus is the capital city, and Cincinnati is the largest city. Both cities have a higher cost of living compared to other cities in the state. The best cities to buy an affordable house are Warren, Marion, Youngstown, and Dayton.

10. Louisiana

Median Home Value: $200,101
Average Rent: $991

Louisiana

The southeastern state of Louisiana is also one of the cheap real estate states. It is the 25th largest state in the U.S. thanks to more than 4.6 million people who call the state home. Transportation, agriculture, and tourism largely contribute to the economy of Louisiana. New Orleans may be the most famous city in Louisiana, but the state’s capital is Baton Rouge. Monroe, Alexandria, Marrero, and Shreveport are the cheapest cities in Louisiana to buy houses.

11. Indiana

Median Home Value: $200,100
Average rent: $1,058

Indiana

Another Midwestern state on the list is Indiana, the 17th most populated state in the U.S. (its population is just above 6.1 million). Indiana is known for its healthcare system, agriculture, and manufacturing sectors. Indianapolis, the state capital, is also the largest city in the state. Indiana has the four cheapest cities to buy houses: Anderson, Gary, Richmond, and Muncie.

12. Missouri

Median Home Value: $218,50
Average rent: $1,090

Missouri

Missouri is among the cheapest places to buy a house in 2022. Another Midwestern state, Missouri ranks 19th in population size with over 6.1 million people. Large industries like transportation, aerospace, financial services, and manufacturing are leading the state’s economy. St. Louis is the largest city in the state and is the 21st largest metropolitan city in the nation. Jefferson City is the state’s capital city. St. Joseph, Joplin, Florissant, and Independence are the cities with the most inexpensive houses in the state.

13. Michigan

Median Home Value: $218,500
Average rent: $1,150

Michigan

The upper Midwestern state Michigan is the 10th largest state by population in the U.S as it is home to more than 10 million people. Manufacturing, defense, natural resources, and information technology are the key sectors on which Michigan’s economy relies. Lansing is the state capital, and Detroit is Michigan’s metro area and the cheapest city. Bay City, Saginaw, Detroit, and Flint are the most affordable cities to buy a house in Michigan.

14. Nebraska

Median Home Value: $219,100
Average rent: $1,100

Nebraska

In 2022, book yourself a ticket to Nebraska looking for cheap real estate states. It is home to less than 2 million residents with a ranking of 37th most populated state in the U.S. Manufacturing, transportation, information technology, and agriculture help keep the economy strong. The capital city of the state is Lincoln, and Omaha-Council Bluffs is the central metro area of Nebraska. The cheapest cities to buy a house in are Beatrice, Lexington, Hastings, and Scottsbluff.

15. Wisconsin

Median Home Value: $250,44
Average rent: $1,120

Wisconsin

One of the cheapest states to buy a house in 2022 is Wisconsin. Almost 6 million people live in Wisconsin, and the 20th most populous state in the U.S. Manufacturing, agriculture, and consumer goods are the biggest industries of Wisconsin and the major contributor to the state’s economy. Milwaukee is the largest city and metro area of the state, though the state’s capital is Madison. Manitowoc, Racine, Beloit, and Fond du Lac are the cities with affordable home prices in the Wisconsin state.

16. Illinois

Median Home Value: $244,501
Average rent: $1,250

Illinois

Illinois is among the largest states in the U.S as it ranks 6th largest state by population due to its 12.8 million people. Manufacturing, agriculture, finance, and investment dominate the diverse economy of Illinois. Chicago is the largest city of the state, the 5th largest in North America, and the state’s major metropolitan area. Springfield is the capital city of the state. Galesburg, Decatur, Danville, and Peoria are the cheapest cities in the state to buy a house.

17. Pennsylvania

Median Home Value: $247,024
Average rent: $1,160

Pennsylvania

Pennsylvania falls on the list of cheap real estate states in 2022. The 5th largest state in the U.S, Pennsylvania, is home to more than 13 million people. Finance, film, and agriculture are the most prominent sectors of the state’s economy. Harrisburg is the state’s capital city, while Philadelphia/Delaware Valley is the central metropolitan area of the state and home to the majority of the state’s population. Harrisburg, Altoona, Wilkes-Barre, and Scranton are the cities where you can buy an affordable house.

18. South Carolina

Median Home Value: $252,299
Average rent: $1,120

South Carolina

South Carolina has to be among the cheapest places to buy a house. It is the 23rd most populous U.S state, with over 5.1 million people as of 2020. South Carolina’s economy relies on its agriculture, healthcare, and manufacturing industries. Greenville Anderson is the largest city in the state, with a population of 150,277 as of 2020. Columbia city is the state’s capital and among the cheapest cities to buy a house. Besides Columbia, some other cities like Spartanburg, Sumter, and Florence are affordable cities to buy a home.

19. North Dakota

Median Home Value: $261,002
Average rent: $1,200

North Dakota

North Dakota is the 3rd smallest state by population, having a home to just 780,000 people. The largest industry of North Dakota is petroleum, followed by agriculture, technology, and food processing. Fargo is the most urban city, and Bismarck is the state’s capital. Minot, Fargo, Grand Forks, and Jamestown are affordable cities to buy a house.

20. Tennessee

Median Home Value: $255,126
Average rent: $1,115

Tennessee

With a population of almost 7 million people, Southeastern state Tennessee ranks 16th most populous state in the U.S. and makes it in the list of cheapest places to buy a house in 2022. Textiles, energy, manufacturing, agriculture, and automotive industries make the diverse economy of Tennessee stronger. The most significant metropolitan area of the state is Nashville which is also the state’s capital. The cheapest cities to buy a house in Tennessee are Jackson, Johnson City, Kingsport, and Memphis.

21. New Mexico

Median Home Value: $263,700
Average Rent: $980

New Mexico

The 36th most populous state New Mexico is the fifth-largest state by area but with just over 2.1 million. Oil and mineral extraction, agriculture, tourism, textile, and manufacturing play a significant role in the highly diverse economy of New Mexico. The most urban area is Albuquerque, while Santa Fe is the state capital. The cheapest cities to buy a house in are Alamogordo, Farmington, Roswell, and Clovis.

22. South Dakota

Median Home Value: $264,421
Average rent: 1,140

South Dakota

North Central U.S state South Dakota is the 4th least populous state with just 890,000. Service sectors like retail, finance, healthcare, and agriculture lead the economy of South Dakota. Sioux Falls is the largest urban area, and Pierre is the state capital. Four cities of South Dakota, such as Mitchell, Vermillion, Aberdeen, and Huron, are the cheapest cities to buy a house.

23. Texas

Median Home Value: 271,211
Average Rent: $1.290

Texas

The second-largest state of the U.S, both by area and population, Texas has a home of more than 29.1 million people. Mining, energy and natural resources, technology, and agriculture are major industries in Texas. Texas’s capital Austin is the second most populous capital in the U.S. At the same time, Texas’s most significant metropolitan area is Dallas-Fort Worth, the fourth largest metro area in the country. The cheapest cities of the state are Wichita Falls, Pharr, Brownsville, and Port Arthur.

24. Georgia

Median Home Value: $275,120
Average rent: $1,180

Georgia, with over 10.7 million population, is the 8th largest state in the U.S. Georgia has a highly diverse economy comprising effective defense, mining, agriculture, and logistics sectors. Atlanta is, at the same time, the capital and largest metropolitan area of the state. Macron, Augusta, Columbus, and Albany are the cheapest cities to buy a house.

25. North Carolina

Median Home Value: $277,801
Average rent: $1,138

North Carolina

The last name in our list of cheapest places to buy a house in 2022 in North Carolina. Home to more than 10.4 million people, North Carolina, is the 9th largest state by population in the U.S. Textiles, agriculture, manufacturing, and high technology largely contribute to the state’s diverse economy. Charlotte is the largest metropolitan area, while Raleigh is the state capital. The cheapest cities are Fayetteville, Burlington, Wilson, and Rocky Mount, where you can afford an appropriate house.

It is not enough to know the cheapest state to buy a house as you certainly need to know the most expensive states to buy a property in 2022 to make a more enlightened decision. These states have shocking home costs, more than bearable. There is a significant difference in the home costs of these states and the conditions mentioned above. Multiple reasons behind unaffordable home costs in these states. There are various reasons like rapidly increasing population, supply shortages, increasing demand, or all of these.

26. Hawaii

Median Home Price: $614,035
Estimated Monthly Mortgage Payment: $2930.45

 

The title of the most expensive or least affordable state to buy a house goes with Hawaii. The home cost for the people of Hawaii is massive as they pay an enormous 35.16% of the median income to meet the expense of the home. This median home, 35.16%, is equal to $615,700.

Hawaii’s island state is in priority for vacationers as it is famous for its aesthetic beaches and pleasant weather. Oahu is the largest island of Hawaii, home to a two-thirds state population. Oahu is also home to the capital and largest city of Honolulu. Hawaii is the 11th least populous state in the U.S, with 1.4 million people.

27. California

Median Home Price: $504,998
Estimated Monthly Mortgage Payment: $2,400.29

The 2nd rank of California in the most expensive states to buy a house is not a shocking fact as it is famous for its whooping housing costs. Residents of California pay an immense 32% median income to afford a house. California is the most populous U.S state and home to more than 39.5 million people. California is also home to the 2nd most populous city in the country. Los Angeles and other major cities of California are San Diego, San Francisco, and Sacramento, which is also the state capital.

28. Oregon

Median Home Price: $312,205
Estimated Monthly Mortgage Payment: $1,484.40

The considerable 21.92% of the median household income, which is $81,202, makes Oregon the third least affordable U.S state. The ordinary home in Oregon costs you more than $312,005.

Oregon is the 27th most populous U.S state with over 4 million people. Portland is the largest metropolitan area, and Salem is the 2nd largest city by population and the state capital.

29. Washington

Median Home Value: $339,012
Estimated Monthly Mortgage Payment: $1,609.59

West Coast state Washington is on the fourth in the least affordable states to buy a house. To afford a home in Washington, residents pay just over 21% of the median income of $339,025.

Washington, also known as the evergreen state, has a lavish forest that provides excellent hiking opportunities. Fruit production is a significant sector of Washington. It is the 13th most populous state with over 7.7 million. Seattle is the most significant metropolitan area. Olympia is the state capital.

30. Colorado

Median Home Value: $343,295
Estimated Monthly Mortgage Payment: $1,629.07

The last on our list is Western state Colorado, the 5th most expensive state to live in. Affording a house here costs 21% of their median income (93,000).

The state is famous for its high mountains and towns such as Vail, Aspen, and Telluride. Big cities like Denver, Colorado, and Boulder are also situated.

Final Thoughts

We have brought you a list of the cheapest states to buy a house in 2022 and the most expensive states. You need to consider a form where you can afford to live, raise your family, and find income resources. Even if you are not planning to move out, it is always best to know about the cheapest places to buy a house.

Should this be included given this article focuses on the cheapest places?  It seems this content should be in a separate article.


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