Cheapest State to Buy a House in the USA: Find Your Perfect Dream Place & Enjoy Life Forever!

Searching for the cheapest state to buy a house in the USA might seem an impossible task because, no doubt, it is an expensive country, given its modernistic appeal. However, that doesn’t mean you cannot afford a residential property here. 

There are affordable places where you can indeed purchase or even build a house of your dreams comfortably. Consider all the budget-friendly USA locations in the article. After exploring all the median sale prices across the nation, we have tried to put the major states in ascending order below. 

Let’s start. 

1. Iowa 

The very first and the cheapest state to buy a house in the USA is Iowa, which is home to world-class amenities and cutting-edge public infrastructure. Taxes applicable to households are low compared to the monthly average income, increasing the purchasing power of residents and relieving stress over particular instances of rising inflation rates. 

Average Sale Price	$2,27,500
Average Household Income	$73,147
Average Monthly Housing Payment	$1,494
Area	56,273 sq mi (145,747 km²)
Population	3,241,498

2. Ohio 

The next cheapest state to buy land in on the list is Ohio, USA, which is situated in the Midwestern region of the country. Considering the area, it has secured the position of the 34th-largest state in the whole of the United States of America. 

The median household income of the residents of this place is comparatively less than that of Iowa. Yet, the average house sale price has been registered comparatively higher.   

Average Sale Price	$231,400
Average Household Income	$69,680
Average Monthly Housing Payment	$1,472
Area	44,825 sq mi (116,096 km²)
Population	11,883,304

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3. Oklahoma

In case mountainous terrain isn’t your preference, you can consider Oklahoma, which is known for its flat and straight land beauty. Thus, you don’t need to handle sloped walks or rides anymore. 

Additionally, this region is home to as many as 39 native tribes, a staggering number. However, the state has a comparatively lower cost of living, making it the cheapest state to buy a house for many future homeowners! 

Average Sale Price	$236,700
Average Household Income	$63,603
Average Monthly Housing Payment	$1,479
Area	69,699 sq mi (180,519 km²)
Population	4,095,393

4. West Virginia

Everyone who is asking, “What state has the cheapest houses?” must also go through the West Virginia market listing. Not only does it offer a modernistic feel, but it also welcomes its dwellers with stunningly picturesque surroundings. 

If you can afford a little extra money but cannot live without nature, this is the place to be! However, before you make any investments, make sure you are well aware of the difference between a condo and a townhouse for better decisions. 

Average Sale Price	$243,100
Average Household Income	$57,917
Average Monthly Housing Payment	$1,225
Area	24,230 sq mi (62,755 km²)
Population	1,769,979

Also Read: Split Level House: History, Types, Features, and Cost of Property

5. Michigan 

Michigan, also called the cheapest state to buy a house, boasts a very protective surrounding, as the region has a very low risk of natural disasters. Not just that, buying a residential unit here is the most coveted goal for many people on rent due to its favorable climate conditions. Yet, many mightn’t find house sale prices compatible with their purchasing powers. 

Average Sale Price	$248,000
Average Household Income	$71,149
Average Monthly Housing Payment	$1,521
Area	96,716 sq mi (250,493 km2)
Population	10,140,459

6. Mississippi

Choose Mississippi and get to enjoy living next to one of the most attractive tourist places in the USA. Although it might not be true for everyone, Mississippi does offer relatively cheaper household properties, probably coming across as the cheapest state to buy a home if your household income is high. 

Average Sale Price	$249,700
Average Household Income	$54,915
Average Monthly Housing Payment	$1,353
Area	48,434 sq mi (125,443 km²)
Population	2,943,045

Also Read: 25 Most Expensive House in America, from Gordon Pointe to Pumpkin Key!

7. Missouri 

Holding the 7th position on our cheapest state to buy a house list, Missouri is another wonder of geography where the most advanced cities blend well with the comforts of nature. This state houses numerous lakes flowing through its major cities, grabbing the attention of many tourists each year. And, needless to say, it is the home to Kansas City, St. Louis, if you should know!

Average Sale Price	$251,900
Average Household Income	$68,920
Average Monthly Housing Payment	$1,478
Area	69,704 sq mi (180,533 km²)
Population	6,245,466

8. Louisiana 

In search of one of the cheapest US states to live in, you might want to explore Louisiana, which is the perfect destination! The place comes with many lively swamps and moist marshes, best for people with a great attraction towards wildlife and outdoor leisure. The region might be a bit expensive, but that is not for you if your average household income is around $60,000.  

Average Sale Price	$252,600
Average Household Income	$60,023
Average Monthly Housing Payment	$1,543
Area	52,271 sq mi (135,382 km²)
Population	4,597,740

Also Read: What Does Under Contract Mean in Real Estate? – The Ultimate Guide for Buyers and Sellers

9. Indiana 

Compared to the national average, Indiana has a lower cost of living, holding the status of the cheapest state to buy a house among other regions in the USA. Other benefits of buying a house here include building equity, several state-specific schemes, low property taxes, highly safe cities, etc. 

Average Sale Price	$255,100
Average Household Income	$70,051
Average Monthly Housing Payment	$1,355
Area	36,418 sq mi (94,321 km²)
Population	6,924,275

10. Arkansas

From Buffalo National River, Ozark, and Ouachita to Hot Springs National Park, Arkansas is a nature-packed cradle for every type of personality, whether introvert or extrovert. This part of the USA is also counted among the cheapest states to buy land, making it a popular choice. Furthermore, within the state, the most affordable cities are Hot Springs and Pine Bluff.  

Average Sale Price	$256,100
Average Household Income	$58,773
Average Monthly Housing Payment	$1,297
Area	53,179 sq mi (137,732 km²)
Population	3,088,354

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11. Kentucky 

Are you a big fan of horse races? If yes, then Kentucky will put an end to your quest for the cheapest states to buy a home where you can easily access and enjoy such races! Furthermore, the dwellers here don’t just benefit from these races but also from the state’s impressive network of underground caves. If you are an archaeologist, it will come as a bonus. 

Average Sale Price	$269,938
Average Household Income	$62,417
Average Monthly Housing Payment	$932
Area	40,408 sq mi (104,656 km²)
Population	4,588,372

12. Alabama 

Ultimately, we have reached Alabama, the last cheapest state to buy a house on our list. This state holds the 12th position because its average residential property price is almost $300,000, although that figure is much cheaper compared to other states in the USA. In Alabama, you can also plan to buy a property near the beautiful capital region of Montgomery or the largest city, Huntsville, if you need a large community to connect with. 

Average Sale Price	$284,090
Average Household Income	$62,027
Average Monthly Housing Payment	$933
Area	52,419 sq mi (135,765 km²)
Population	5,157,699

Also Read: Average Square Footage of a House: Changes, Factors Influencing, and Why Consider Buying a Small House

Other Cheapest States to Buy a House 

Besides the affordable list above, other cheap states to buy a house in the USA are given in the table below, along with the median house sale prices. So, consider some more options for a comprehensive analysis.  

S. No.	State	Average Sale Price
1.	Wisconsin	$302,700
2.	South Dakota	$317,400
3.	Texas	$335,600
4.	Minnesota	$342,400
5.	Delaware	$343,300
6.	New Mexico	$345,100
7.	Georgia	$359,900
8.	North Carolina	$367,600
9.	South Carolina	$377,600
10.	Tennessee	$383,400
11.	Alaska	$388,700
12.	Wyoming	$409,600
13.	Florida	$410,600
14.	Maryland	$411,000
15.	Vermont	$414,400
16.	Connecticut	$415,500
17.	Maine	$415,800
18.	Virginia	$425,600
19.	Arizona	$454,600
20.	Nevada	$455,000
21.	Idaho	$480,500
22.	New Hampshire	$487,700
23.	Rhode Island	$506,600
24.	Oregon	$507,900
25.	New Jersey	$538,300
26.	Montana	$540,700
27.	Utah	$566,800
28.	New York	$571,300
29.	Washington	$606,000
30.	Colorado	$607,300
31.	Massachusetts	$622,100
32.	Hawaii	$779,000
33.	California	$785,200

Conclusion 

For the cheapest state to buy a house, you can consider all the places in the United States of America listed above. However, for a better experience, always pay a visit to the region where you plan to buy a property before making a purchase. 

Exploring a location allows you to analyze its subjective worth better so that you make the best decision without regretting it at a later point. 

If you are planning to build a house from scratch, never forget to hire a contractor, assess home inspection costs, measure potential risks involved, take the best safety measures, etc., in advance to handle the process with ease.

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