The Top 10 Cheapest States To Buy A House In 2023

Home buyers are always searching for a deal. Where you buy a house is often determined by factors like work, family and affordability. If affordability is priority number one for you, you’ve come to the right place. We’ve pulled the data to find the cheapest state to buy a house in 2023.

Table Of Contents

Key Findings

The Cheapest States To Buy A House

The Cheapest States To Buy A House In Each Region

Tips For Buying An Affordable House In A Low-Cost State

The Bottom Line

Methodology

Key Findings 

Here are some key findings about the cheapest states to buy a house:

The Cheapest States To Buy A House

To find the most affordable states to buy a home, we used the following metrics:

The property taxes in each state were not included as metrics as these costs vary per city and location of the home. When following the steps to buying a house, it’s important to consider these metrics as well as how the home and its location fits your needs.

1. Mississippi

Mississippi, “The Magnolia State,” is the birthplace of Elvis Presley and the delta blues. It’s also the cheapest state to buy a house in 2023. As of 2020, the total state population was 2,961,279,  making it the 32nd most populated state. The most populated city is Jackson, with 153,701  residents. The low cost of living in particular – almost 15% below the national average – makes it an incredibly affordable place to buy a house and live.

2. Ohio

Ohio is number two on our list and the cheapest state in the Midwest. It’s also the most populated on this list, with a 2020 population of 11,799,448. That makes it the 7th most populated in the country. Columbus is its most populated city with 905,748  residents – the second-most populated midwestern city after Chicago. Ohio’s growing cities and low housing prices can make it an easy sell for many.

3. West Virginia

Nestled in Appalachia, West Virginia has gorgeous views and plenty of affordable housing options. With 1,793,716 residents as of 2020, it’s the 11th least populated state in the country (though not the least populated state on this list). Its high affordability is desirable, especially since its easternmost region is an hour from Washington, D.C. – one of the country’s most expensive cities.

4. Kansas

Kansas, “The Sunflower State,” is a largely agricultural state, with nearly 90% of its total land devoted to farmland. It’s also the geographical center of the U.S. As of 2020, the state had 2,937,880 residents. Its most populated cities are Wichita and Overland Park (a populated suburb of Kansas City, Missouri). While many may think of Kansas as flat farmland, the state has distinct regions with their own culture.

5. Iowa

 

Northeast of Kansas, Iowa is another major agricultural state, with corn being its biggest export. Population-wise, it’s around the same size as Kansas, with 2,937,880 residents as of 2020. Des Moines is its most populated city, with 214,133 inhabitants in 2020. Dubbed “The Hawkeye State,” Iowa is an affordable state that’s also great for college sports, and it’s the birthplace of the band Slipknot.

6. Oklahoma

 

Oklahoma, known as “The Sooner State,” sits right below Kansas in the middle of the United States. Its capital – Oklahoma City – is its biggest city, with 681,054 residents. Oklahoma’s economy is based on energy, as it’s a large producer of crude oil and natural gas. If you’re interested in getting a piece of Oklahoma, it can be had for relatively cheap.

7. Wyoming

Wyoming is the one and only western state on this list. It also happens to be the windiest, with an average wind speed of 21.5 mph  in its windiest areas. It’s the least populated state in the country, with a population of just 576,851 residents as of 2020. Wyoming is known as “The Equality State” because it was the first state to give women the equal right to vote. 

8. Nebraska

Rounding out the midwestern states, Nebraska comes in at spot eight for cheapest states to buy a house. Nebraska’s got 1,961,504 residents, with its largest city being Omaha, at 486,051 residents. Known as “The Cornhusker State,” and with its proximity to Kansas, Oklahoma and Iowa, it shouldn’t be surprising that Nebraska is another agricultural state. If you’re looking for fresh produce and affordable housing, Nebraska should be at the top of your list.

9. Missouri

Missouri, also known as “The Show Me State,” is known for its musical heritage of jazz and blues and its distinct barbecue. With a population of 6,154,913, it’s one of the more populated states on our list. It has several distinct regions, from mountains, to plains, to the Missouri Bootheel along the Mississippi River. Missouri’s a state with a lot of variety to offer if you’re looking for an affordable.

10. Alabama

Rounding out our list, Alabama is one of the cheapest states to buy a house. It’s also one of two states on this list to border the ocean (with its neighbor, Mississippi, being the other). As of 2020, Alabama had a population of 5,024,279. It’s also home to Auburn, one of the fastest growing cities in the U.S.

The Cheapest States To Buy A House In Each Region

Now that you’ve read about the cheapest states in the country overall, let’s break it down by the country’s four regions.

1. Northeast

The northeastern region of the U.S. was the only region that didn’t make our list of the 10 cheapest states to buy a house. It contains many of the country’s most populated (and expensive) cities, like New York City, Philadelphia and Boston. But you can still find a deal here. If affordability’s what you’re after in this region, look at these states first.

Pennsylvania, with its rolling hills and great cities, has a lot to offer. With the national median home sale price at $467,700 , Pennsylvania’s average is significantly lower. That means affordable housing may be found here. Even in Philadelphia and Pittsburgh, a quality house can be had for a better price than other parts of the country.

Maine, America’s easternmost state, has a population of . Also known as “Vacationland,” it’s a popular place for New Englanders to retreat to in the summer. That can make it a great place to own a home, whether it’s for personal use or as a rental property. Good news is that its average home sold price is the lowest in the region.

Vermont, also known as “The Green Mountain State,” is a northeastern state known for its natural beauty. With a population of just its biggest city is Burlington, which only has 44,743  residents. Vermont is known for its tourism, with many people enjoying outdoor recreation, like skiing. That can make it a great place to own a home, especially since it’s one of the most affordable states to buy a home in the region.

2. South

The south is one of the fastest-growing regions in the United States. With its warm weather, strong economies and easy living, many people are moving to the region. It makes moving easier because it’s one of the most affordable regions too.

As the cheapest state to buy a house in the country, you can get a lot for your buck in Mississippi. Sandwiched between Memphis and New Orleans, the state offers southern country living within driving distance of cultural meccas.

With its rolling hills and winding rivers, West Virginia has plenty to offer in terms of outdoor exploration. It’s also one of the cheapest states to buy a house in the country. As you can see, the median sale price last year was under $200k, making it one of three states under that mark.

Bordering the west and the Midwest, Oklahoma is a plains state with a unique identity. With its rich cultural history, Oklahoma is a place you can own a property for much less money than other states.

3. Midwest

The Midwest is a big area. From the Great Lakes region to the Great Plains, you have a variety of low-cost places to choose from. Along with the South, the Midwest is one of the most affordable regions in the country to buy a house.

With cities like Cleveland, Columbus and Cincinnati, as well as a variety of small, rural towns, Ohio gives you a lot to choose from when it comes to affordable living. Along with Kansas and its neighboring West Virginia, Ohio is one of three states where the median home sale price is under $200,000.

Bordering the South and the West regions, Kansas has the cheapest median home sale price. In fact, the next cheapest (Ohio) is nearly $100K more. Kansas combines many features of the South and West, with its great barbecue, love of football and hot summers.

Iowa, the Hawkeye State, is an agricultural powerhouse. But it has many other things going for it, too. The University of Iowa and Iowa State University bring many students to the state. It’s also known as a political hub, with the Iowa Caucuses being a big electoral event for both the Republican and Democratic parties.

4. West

With its stretching landscapes and gorgeous views, the West is the least densely populated region of the United States. While the West Coast has some of the most expensive cities in the country, a house can be had for less in several parts of the region. If you’re looking to move out west, these are the most affordable states to buy a house.

America’s least populated state, Wyoming, is also one if the country’s most affordable. From the Medicine Bow National Forest to Yellowstone National Forest, to landmarks like Devils Tower, Wyoming is a state of stark beauty. If you’re looking for a quiet place with expansive views and just the sound of the wind, Wyoming should top your list.

With its towering mesas and the Rio Grande River, New Mexico is a beautiful place to buy a house. It’s also one of the most affordable states in the West. From the Gila National Forest to the Santa Fe art scene, you can find something to enjoy in New Mexico.

Utah is one of the cheapest states in the West to buy a house. With a median home sale price that’s cheaper than Wyoming, you can likely find an affordable home here. Utah offers a warm, temperate climate and plenty of outdoor recreation with its mountains and lakes. If you like to hike and want an inexpensive home, Utah should be on your list.

Tips For Buying An Affordable House In A Low-Cost State

Just because you’re buying a house in an affordable state doesn’t mean you should overlook how much it costs to own a home. There are many factors to weigh when buying a house. Here are some of them.

The Bottom Line: Find Affordable Housing In The States With The Lowest Cost Of Living 

There are affordable states to buy a house in every region of the country. But areas like the Midwest and the South have the most affordability to offer. If you’re looking for the cheapest places to buy a house, look in the Great Plains and states along the Mississippi River. But know that you can buy a home in the area that’s right for you with a little research and preparation.

Methodology: Finding Cheapest States To Buy A Home 

We collected and analyzed the most recent data on four key statewide metrics to give us insight into the top states with affordable homes. The metrics used in this study include average home sold price, cost of living index, housing index, and utilities index. These metrics were chosen based on public data availability and topical relevancy.

Weights were then applied to each metric depending on their individual importance in the study. The weighted scores for each metric were summed to create the overall score for each state. The final scores are sorted to produce the final rankings.