The 10 Cheapest States to Buy a House (Updated for 2024)

With sky-high mortgage rates and sale prices, finding affordable housing has become more challenging. How can you find a home without breaking the bank? Some people have started moving to the cheapest states to buy a house. The low land prices might be too tempting to pass on. Here are the 10 most affordable states in 2024. 

10. Ohio

Ohio may surprise you on this list because of its bustling metro areas. Columbus, Cleveland, and Cincinnati are excellent spots to live, although there is plenty of space in the rural areas. Low home prices are easier to find as you get closer to the Indiana and West Virginia borders.

The average home value in Ohio was $235,560, according to Zillow’s Home Value Index. One reason for the low home prices is the declining population. Experts say people are leaving the Buckeye State to retire in other states or find places with warmer weather. 

9. Kansas

If you like sunflowers and flat lands, Kansas is one of the best and cheapest states to buy a house. Most of the state is rural, allowing plenty of opportunities to live a quiet lifestyle. Zillow says the average home in Kansas is about $232,000, though it’s not the cheapest in the Great Plains. 

Demand is relatively low across the Sunflower State, leading to more attractive prices. However, it depends on which half you live in. The eastern section of Kansas features Wichita, Kansas City, Topeka and Manhattan. These cities are either major metro areas or college towns and may have pricier houses. 

8. Alabama

Alabama is one of the cheapest states to live in, but it’s a different story if you want to buy a house. Zillow says the average home value is $228,283, which may be more expensive than you thought in the past. Why have the sale prices increased? Part of it is the increased urbanization statewide. 

Cities like Huntsville have emerged as noteworthy metropolitan areas. NASA and other space industry jobs have led to increased housing and the cost of living. Still, Alabama offers inexpensive lifestyles with a solid income-to-cost-of-living ratio. There are plenty of rural areas to call home. 

7. Iowa

With an average home value of $226,811, Iowa is just under Alabama for 2024 prices. The Hawkeye State is one of the cheapest states to buy a house because of its plentiful farmland and rural homes. Iowa also doesn’t have many major cities, meaning most of the state avoids the high urban prices. 

While Iowa houses are pretty cheap, it’s essential to consider the extra costs when buying a home. For instance, property taxes in Hawkeye State are relatively expensive compared to those of some of its neighbors. Iowa has an effective property tax rate of 1.4%, one of the highest nationally. 

6. Kentucky

Is Kentucky in the South or the Midwest? The debate has raged on with varying opinions. Regardless of the location, the Bluegrass State is one of the most affordable. Kentucky properties have an average value of $210,862, making them accessible for first-time buyers. 

One of the advantages of Kentucky is the diverse terrain. The eastern part of the state features the Appalachian Mountains, whereas the western section borders a small piece of the Mississippi River. If you want more urban living, head to Louisville, Frankfort or Lexington.  

5. Oklahoma

If you like the flatlands, Oklahoma could be your next residence. It’s one of the cheapest states to buy a house in the Great Plains, considering the average home value was about $210,097. The Sooner State has urban areas like Oklahoma City, Tulsa and Norman, although there is plenty of rural land. 

Now is an excellent time to move to Oklahoma because of the growing job market. Industries have moved here because of the business-friendly climate, which shows in the market conditions. The job opening rate increased to 6% in July 2024, higher than the national average. 

4. Arkansas

The houses continue to get less expensive as you get to Arkansas. If you like mild temperatures and Southern food, Arkansas is an affordable option for your budget. Zillow says the average house costs about $209,299, marking some of the cheapest prices in the Southeast. 

Considering the average home value, Arkansas may be among the most underrated states. The Razorback State is one of the few with mountains that aren’t a part of Appalachia or the Rocky Mountains. Head to the Ozarks or the Ouachitas for fun family outings. Additionally, Arkansas has job opportunities with numerous corporate headquarters, such as Walmart and Tyson. 

3. Louisiana

If you want to call the Bayou State your home, it’s become much cheaper. Louisiana’s average home value is about $204,977, depending on where you live. The houses in New Orleans can get expensive, especially if you look around the French Quarter. However, the rest of the state is relatively affordable. 

One thing to consider about Louisiana homes is the state’s insurance crisis. Hurricanes have ravaged Louisiana for over two decades, leading to spikes in insurance costs. When accounting for premiums, housing costs have increased by 50% in the state. Numerous prominent insurers have left, thus leaving less competition.  

2. Mississippi

Louisiana’s eastern neighbor is the second-cheapest state to buy a house. Mississippi homes have an average value of just $181,695 — a demonstrably lower price than most other states. The Magnolia State has low sale prices because it is primarily rural and in low demand. However, you shouldn’t write off the state. 

Mississippi is one of the few states with prominent rivers and beach access. The state touches the Gulf of Mexico with white-sand beaches and has the Mississippi River on the western side. While the metro areas aren’t large, you can find southern hospitality in Jackson, Hattiesburg, Tupelo and Biloxi. 

1. West Virginia

If only you want a cheap house, West Virginia has your back. The Mountaineer State has an average home value of around $168,166 — by far the most affordable nationwide. In West Virginia, you’ll find rural communities with few metro areas. Charleston, Huntington and Morgantown are the prominent cities in the state. 

West Virginia’s primary appeal is living in nature. The state has the Appalachian Mountains occupying much of the eastern side, letting you appreciate the great outdoors from your front porch. Additionally, West Virginia boasts the Monongahela National Forest and the Ohio and Kanawha Rivers.    

Living in the Cheapest States to Buy a House

Affordability has become an issue in America’s housing market. Nowadays, buyers need high salaries to afford homes, thus leaving many to continue renting. Some prospective homeowners have turned to the cheapest states to buy a house. In any state, it depends on where you look. The rural areas tend to be more affordable because of their low demand. However, the urban areas will have higher costs, even if they’re small.

Originally published 2/23/2023 — Updated 11/21/2024