Cheapest States To Buy a House: Do you have plans of buying a house in the U.S. this 2022?
If yes, then, I’m sure that knowing the states with affordable, yet great houses is one of the top things on our list, which is why a list of the top 25 cheapest states to buy a house in the U.S. 2022 have been carefully put together, just for you, to make your search easier.
Several benefits come with owning a home as opposed to renting, benefits like, improving and modifying your house, just the way you want it, but most importantly, you build equity on your home, even if you purchased your house on mortgage, you’ll eventually pay it off and be free.
But this all depends on where you purchase a house. You wouldn’t want to buy a house where the mortgage payment can eat up a considerable part of your income, living in a beautiful house but finding yourself cash-poor, which will keep you in bondage, when the goal is to be rent-free and happy even while paying your mortgage which entails getting the home of your dreams, without breaking the bank, that is why you should be flexible about where you buy your house.
Having all these in mind, let’s dive into listing out the
Top 25 Cheapest States To Buy a House in 2022
Without further ado, you should know that “Cheapest” does not necessarily mean it’s going to be a “walk in the park” or that these places have rock bottom prices, rather, it means that they are metropolitan areas with a good balance of property value, tax rates, median income, and living cost, so instead of using the word cheap, you can decide to, swap it with the word underestimated because they are cities with long-term economic potential where the average property value is disproportionately low, compared to other places. These States include:
- West Virginia
- South Carolina
- North Dakota
- New MMexico
- South Dakota
- North Carolina
Tennessee is a landlocked state in the southern U.S., with Nashville being its capital and also the biggest metropolitan area. It is one of the states with the lowest taxes because there is no income tax on wages in the state, so the income tax rate is 0% while the average effective property is 0.64%.
Tennessee is the 16th most populated state in the U.S. with nearly 7 million occupants and the first southern state to make an appearance.
They are known for agriculture, energy, automotive, textile, and manufacturing because they are the largest industries they have. Their home value is an average of $258,586, with an average annual increase of 14.3% and the average rent price being $1,121.
One of the cheapest cities to get a house in Tennessee is Memphis, which is rich in culture, home of Graceland, and the center of many parts of American Music, like blues and rock.
Demographically, Memphis looks like Cleveland and has an average age of 34 divers, which is lower than the country’s average age, which means, it’s full of so many young people. It has fast-growing technology sectors and federal agencies.
Other most affordable cities in Tennessee are Jackson, Johnson, and Kingsport with an index living cost of 88.7.
Tennessee has a generally mild climate year-round, the average high temperature in winter is 9.4°(49°F) and average low temperature of -1°C(30°F). In summer, the average high temperature is 31.7°C(89°F) and average low of 19.4°C(67°F).
Michigan is the 1️0th post populated state in the U.S., with an average of 10 million residents, and has an economy primarily based around manufacturing, defense, IT, and natural resources.
The state capital is Lansing but Detroit has the largest metropolitan area, is rich in food and culture and though like every other city, Detroit has its issues, like the decline of the automotive industry and the local economy collapse, they are said to have experienced resurgence of late.
Despite the challenge, it remains the headquarter of Ford and General Motors and the good thing is, the collapse of the economy, which led to the collapse of real estate prices also led technology companies like LinkedIn, Microsoft, Google, and Apple to invest heavily in the city, guess it’s because, in Detroit, the average resident spends only 6% of their monthly income on a mortgage, which is unbelievable, and real estate prices are insanely cheap, which makes Detroit a promising destination for a lot of young technology professionals.
Apart from Detroit, the other cheapest cities to buy a house in Michigan are Saginaw, Bay City, and Flint, with an 88.9 cost of living index.
The average home value in Michigan is $228,419, with a 1-year price change of 16.7%, a 5-year price, and an average rent price of $1,140.
Ohio, like Michigan, is located in the upper Midwest, at the shores of Erie, the 34th largest area, the seventh most populated state, and 10th most densely populated, with nearly 12million residents, the average home value of $182,000, an annual price increase of 14.4%, average rent of $1,024 and with the largest industries being manufacturing and financial services.
The state is very attractive to young people because it is on the lakeshore, where there are plenty of opportunities for fishing, skiing, and boating.
The state capital of Ohio is Columbus, the largest metropolitan areas being the Greater Cincinnati and the Greater Cleavland which is surrounded by several miles of beaches, parks for nature lovers and has so many plazas, golf courses, designated horseback riding trails, and great picnic areas, while the cheapest cities to buy a house are Marion, Warren, Youngstown, and Dayton, with the cost of index living being 90.8.
This is one of the cheapest states to buy a house, with 6 million residents and the 20th larger state in the U.S.
It is a midwestern U.S. state with coastline on the 2 great lakes of Michigan and Superior, with an interior of forest and farm and its economy being driven by manufacturing, consumer goods agriculture, and healthcare.
The state capital of Wisconsin is Madison with Milwaukee as the largest metropolitan area. Milwaukee is a city on Lake Michigan’s western shore, known for its breweries, with more than 30 breweries in the metropolitan area, many of which offer tours, chronicling its role in the beer industry. The Harley Davidson museum displays classic motorcycles, including one of Elvis Presley’s while overlooking the Menomonee River.
The median home value is $231,000, with an average annual increase of 13.5%, a 5-year price change of 47.9%, and average rent of $1,133.
The cheapest cities to buy a house are Manitowoc, Fond du Lac, Racine, Beloit with the cost of the living index being 97.3.
This is a state in the Midwestern United States, its capital being Topeka and the largest city, being Kansas City.
It is known for its jazz heritage, fountains, barbecue but its largest financial sectors are education and medicine, which are the 2 major employers of the residents, because they all combined(the University of Kansas, medical center, and University Hospital) employ more than a thousand people. They also have transportation and manufacturing as major industries.
Kansas is one of the less populated states which makes it the 35th most populated state in the US, with less than 3 million residents, with most of the state being open farmland which helps explain the low average property price of which its average home sells for $177,000, with an average annual increase of 11.3% and average rent of $1,050.
The cheapest cities to buy a house are Topeka, Salina, Hutchinson, and the cost of living index is 89.0.
Alabama, with over 5 million occupants, is the 24th largest state in the U.S., and its diverse economy is driven by the financial, healthcare, agriculture, and manufacturing sectors.
Alabama, known for its historic/cultural landmarks has one of the lowest median home prices at only $183,101 and is experiencing healthy growth with an average year-to-year increase of 11.9% and an average rent of $1,060.
The cheapest cities to buy a house are Birmingham, Gadsden, Phenix City, and Montgomery, with the cost of index living being 89.3.
This is a midwestern state, sited between the Mississippi rivers and Missouri. It is known for its landscape of rolling plains and cornfields.
Lowa is home to more than 3.1 million people and the 31st most populous state in the U.S. The cities economy is driven by biotechnology, information, manufacturing, agriculture, and natural resource sectors.
Omaha Bluffs is the biggest metropolitan area and Des Moines is the state capital. Lowa has an average rent of $ 1,021, a median home value of $176,499, with an annual price change of 11.4%, and a 5-year price change of 28.8%.
The cost of living index is 90.1 and the cheapest cities to buy a house are Waterloo, Davenport, Council Bluff, and Sioux City.
Kentucky, being the 26th largest state in the United States has over 4.5 million people with agriculture, healthcare, manufacturing, and natural resources as its economic strength.
The state capital is Frankfort and Louisville is the largest metro area. The cheapest cities to buy a house this 2022 are, Owensboro, Covington, Bowling Green, Hopkins Ville, and the cost of living index is 90.9.
The median home value is $180,024 with an annual price change of 13.8%, a 5-year price change of 41.7%, and average rent of $1,025.
This is a state where agriculture, tourism, and transportation are the largest business sectors, it is the 25th most populated state in the U.S. with almost 4.7 million residents.
Louisiana’s average home value is $199,541 with an annual price change of 10.5%, 5 years price rent of 20.9%, and $988 average rent, with the cheapest cities to buy a house being Alexandria, Shreveport, Marrero, and Monroe, cost of the living index being a 93.9, New Orleans being the largest metro area and Baton Rouge as the capital.
This is the 38th largest by area and 17th most populous of the 50 United States, with Indianapolis being its largest city and capital.
Indiana is the home of 6.8 million residents with its economy driven by the manufacturing, healthcare, and agricultural sector.
The median home value in Indiana is $200,056, with an annual price change of 17.5%, a 5-year price change of 52.7%, and average rent of $1,052.
The cost of living index is 90.0, with the cheapest cities to buy a house being Gary, Anderson, Richmond, and Muncie.
This is a state with Jefferson City being its state capital and St. Louis the largest metro area.
It is the 19th most populated state in the U.S. and home to more than 6.1 million people.
The major industries include financial services, aerospace, transportation, and manufacturing.
The cheapest cities to buy a house include St. Joseph, Joplin, Independence, Florissant, and cost of living indexing 87.1. The median home value is $218,419, with a 1-year price change of 16.7%, a 5-year price change of 54.9,% and an average rent of $1,086.
#12. West Virginia:
This is one of the cheapest states to buy a house in the U.S. this 2022, with Charleston as its state capital and Huntington-Ashland as its largest metropolitan area. It is home to 1.8 million people and is the 40th most populous state with its largest industries being national resources and tourism sectors.
The cost of West Virginia is 91.1 according to the world population review, and the cheapest cities to buy a house are Huntington, Beckley, Clarksburg, and Bluefield.
The median home value of West Virginia is $122,342, with an annual price change of 97%, a 5-year price change of 23.9%, and average rent of $912.
This state, housing nearly 3 million residents, is the 34th most populated state in the U.S, with agriculture and manufacturing being the two largest industries in the state.
The cheapest cities to buy a house in Mississippi include, Meridian, Greenville, Gulfport, and Jackson, with the cost of the living index being 86.1.
The state capital and largest metro area of Mississippi is Jackson. It has an average home value of $151,190, an annual price change of 12.6%, a 5-year price change of 30.2%, and average rent of $989.
With Springfield being its capital city, and Chicago being the largest metropolitan area, Illinois has about 12.8 million residents, making it the 6th most populated in the U.S., with manufacturing, agriculture, investment, finance, and the service sectors being its economic strength.
Illinois has a median home value of $244,494 with an annual price change of 13.5%, 5 year price change of 30.1% and an average rent of $1,240. The cheapest cities to buy houses are, Peoria Galesburg, Decatur, and Danville, with the cost of the living index being 94.5.
With Harrisburg being the capital city and Philadelphia/ Delaware Valley as the largest metro area, Pennsylvania is one of the cheapest States to buy a house in the U.S, with it accommodating over 13 million residents, which makes it the 5th largest state.
Finance and agriculture are the two largest industries in the state. Pennsylvania’s cost of living index is 101.7, with a median home value of $246.873, an annual price change of 15.3%, the 5-year price change of 41.8%, the average rent of $1,154 and the cheapest cities to buy a house being, Wilkes-Barre, Scranton, Altoona, and Harrisburg.
#16. South Carolina:
This is a state with manufacturing, healthcare, and agriculture as its three largest industries, with Columbia as its state capital and Greenville-Anderson as its largest metro area as it houses over 5.1 million people.
The cheapest city to buy a house includes, Sumter, Florence, Columbia, and Spartanburg. The cost of living index is 95.9, with the average rent being $1,115.
The average home value of South Carolina is $252,309, with an annual change in the price of 20.3%, and 5-year price change of 48.4%
#17. North Dakota:
This is the 3rd smallest state in the world with just about 780,000 people, Bismarck as its capital, and Fargo as its largest metropolitan area.
The largest industry in North Dakota is agriculture, followed by technology, food processing, and petroleum. The cheapest cities to buy a house are, Minot, grand forks, forgo, and Jamestown.
The cost of living index is 98.8, with the median home value of North Dakota being $258,101, an annual price change of 8.5%, 5-year price change of 13.2%, and an average rent of $1,190.
#18. New Mexico:
With Santa Fe as the capital and Albuquerque as the biggest metro area, New Mexico is the 36th most populated state in the U.S. and the home of 2.1 million people, with one-half of their economy being based on the services sector, while most of the other part is centered on extractive industries which include oil production and mining.
The cheapest cities to buy a house are Clovis, Roswell, Alamogordo, and Farmington, with its median home value being $263,685, a possible annual price change of 18.6%, 5-year price change of 47.3%, an average rent of $1,134, and living cost index is 87.5.
#19. South Dakota:
South Dakota’s cheapest cities to buy a house in Huron, Mitchell, Aberdeen, and vermillion. Its median home value is $264,362, with an annual price change of 16.9%, a 5-year price change of 40.6%, an average rent of $979, and an index cost of living being 99.8.
South Dakota, with Pierre being the state capital and Sioux Falls being tbs largest metropolitan area, is the 4th smallest state in U.S. with a population of just under 890,000 and healthcare, agriculture, the service sector like finance, and retail, driving its economy.
#20. North Carolina:
This is the most populous state in U.S. with over 10.4 million occupants, Raleigh being its state capital and Charlotte, its biggest metro area.
The cheapest cities to buy a house are, Fayetteville, Rocky Mount, Wilson, Burlington with the cost of the living index being 94.9 and the economic drive generated from textiles, agriculture, high-technology, and manufacturing.
North Carolina has an average home value of $277,795, an annual price change of 23.6%, 5 years price change of 57.8%, and an average rent cost of $1,140.
As one of the cheapest states to buy a house, texas is the 2nd largest state by population in the U.S., with nearly 29.2 million residents, with Austin as its state capital and Dallas-Fort Worth as its largest metropolitan area.
Its major industries include natural resources, energy, agriculture, and mining. The cheapest cities to buy a house include Wichita Falls, Brown Ville, Pharr, port Arthur with its cost of the living index being 91.5, the median home value being $271,172, with a 1-year price change of 20.9%, 5-year price change of 49.0% and average rent price of $1,289.
This is a Midwest U.S. state encompassing the prairies of the great plains, the towering dunes of the sandhills, and the panhandle’s dramatic rock formations, famous for its farming, agricultural production, and natural attractions.
It is the 37th largest state with nearly 2 million residents with agriculture, information technology, manufacturing, and transportation as its major sources of income.
The state capital is Lincoln while Omaha-Council Bluffs, which is the home to the Durham Museum, which honors the state’s pioneer past in a converted railroad depot, is the biggest metropolitan area.
The Nebraska state sales and use tax rate is 5.5%. In addition, local sales and use taxes can be set at 0.5%, 1%, 1.5%, 1.7%, or 2% as adopted by the city or county governments.
The cheapest cities to buy a house are, Beatrice, Lexington, Hastings, Scotts Bluff, with the cost of index living being 90.8, the median home value of $218,939, an annual price change of 14.0%, and average rent of $1,103.
This is a southeastern U.S. state whose terrain spans coastal beaches, farmlands, and mountains, home to more than 10.7 million people and the 8th most populated state in the U.S., has a diverse economy driven by the mining, agriculture, industry, logistics, and defense sectors, with Atlanta being its state capital, also the largest metropolitan region, home of Georgia aquarium and the Martin Luther King Jr. National Historic Site, dedicated to the African-American leader’s life and times.
The cheapest cities to buy a house are, Albany, Macron, Columbus, Augusta, with the cost of index living being 89.2, the median home value being $275,116, a year price change of 23.5%, 5-year price change of 62.7%, and average rent price of $1,179.
Bordered by Texas on the south and west, Kansas on the north, Missouri on the northeast, Arkansas on the east, New Mexico on the west, and Colorado on the northwest, it is a state of the south-central region of the United States.
It is an affordable state with high wages but a low cost of living, a safe community, surrounded by beauty. Study shows that, factored in the minimum wage in each area, is the average monthly living expenses, median rent prices, groceries, and utility bills of its residents.
It is the 28th most populated state, with a population of 4 million people, the diverse economy being powered by natural resources, manufacturing, agricultural sectors, with Oklahoma city which has a way of balancing nature, and modern life, making residents live happier, one of the most romantic cities in America, with high job opportunities, as the state capital and also the biggest metropolitan area.
The average home value is $162,409, with an annual price change of 14.6%, a 5-year price change of 36.5%, and average rent of $1,015. The cheapest cities to buy a house are Muskogee, Lawson, Shawnee, Enid, with the cost of the living index being 87.0.
This is a southern U.S. state bordering the Mississippi River and is known for its wilderness area with caves, hot springs, encompassing Mountains rivers, and abundant parks.
The rugged Ozarks region in its northwest has hiking trails and limestone caves such as Blanchard springs caverns.
Arkansas being the 33rd largest state in the United States has 3 million residents with tourism, agriculture, and manufacturing as its economic drive, Little Rock is its capital and also the largest metropolitan area. The Clinton presidential center, housing Bill Clinton’s presidential archives.
The cheapest cities to buy a house are, pine, Bluff, North Little Rock, Texarkana, Fort Smith, with the cost of the living index being 86.9, median home value at $161,570, an annual price change of 15.6%, 5-year price change of 38.1% and average rent of $926.
FAQ on the cheapest state to buy a house in the U.S.A
What are the other things to consider while buying a house?
Apart from looking for the cheapest state to buy a home in 2022, there are other things to also consider, which include:
- Crime rate: While looking for the cheapest state to buy a house in U.S. this 2022, the crime rate should be one of the major things to consider because you wouldn’t want to purchase a house in a place where you won’t have peace of mind. Though there is no 100% safe place, some places are safer than others.
- Weather: If you are looking for a state in U.S. to purchase a house, weather consideration should be one of the vital things on your to do list, especially if you are allergic to extreme weather conditions.
- Unemployment rate: The truth is, where there is high unemployment rate, tgere is high crime rate, because “an idle mind, is the devils workshop”. Also, if you are looking to get a job in the place where you intend buying a house, you will want to make sure that wont be a big challenge.
- Local cost of living: This is one of the very vital things to consider while looking for the cheapest state to buy a house in USA, because you wouldn’t want to spend more than you should on living cost after avoiding spending so much on house purchase.
When should I buy a house
There is no exact, perfect time to buy a house because the price of real estate will keep being unstable, so once you are sure that you are ready financially, you have the state where you want to get a house in mind and it meets most, if not all of your necessary needs, then you are good to go.
How much real estate is in the USA?
There are currently more than 3 million active real estate licensees in the United States. As of October 2022, there were 1.56 million members of the National Association of Realtors
Where is the best real estate in the US?
Best Real Estate Markets in 2021
- Austin, Texas (Metro Area) Median listing price: $365,000.
- Tampa, Florida. Median listing price: $297,500 (for single-family home)
- Raleigh-Durham, North Carolina.
- Nashville, Tennessee (Metro Area)
- Denver, Colorado.
- Cleveland, Ohio.
- Phoenix, Arizona.
- Jacksonville, Florida.
Buying a house in an affordable state is one of the ways to set yourself up for a more stable financial future but then make sure your choice is not just based on the fact that you will get the cheapest home in that state but consider also, other factors as mentioned above.
We hope that among the 25 cheapest states to buy a home in the U.S. mentioned above, you find one that has most of, if not all the things you need or want.