When it comes to buying a house in the United States, some states are more affordable than others. In this article, we will explore the top 10 cheapest states to buy a house according to the Zillow Home Value Index as of July 2023. With the rising cost of living, finding an affordable place to live has become increasingly important for many Americans.
While some areas of the country have seen significant increases in home prices, there are still many regions where housing remains relatively inexpensive. Several factors can influence the cost of housing in a particular area, including local job markets, population density, and regional economic conditions. As a result, the cheapest housing markets in the US can be found in both urban and rural areas across the country.
Despite the lower prices, these areas may still offer a range of amenities, including access to outdoor recreation, cultural attractions, and local businesses. For those willing to relocate or invest in a second property, the cheapest housing markets in the US can be an excellent option to consider.
10 Cheapest Housing Markets to Buy a House in the US
1. West Virginia
With a Zillow Home Value Index of $155,148, West Virginia is the most affordable state to buy a house in the US. Despite its low home prices, the state boasts natural beauty and outdoor recreation opportunities, making it an attractive option for homebuyers on a budget.
2. Mississippi
Mississippi has a Zillow Home Value Index of $176,655, making it the second cheapest state to buy a house in the US. The state offers a low cost of living and a rich history but also faces challenges such as high poverty rates and limited job opportunities.
3. Oklahoma
With a Zillow Home Value Index of $198,995, Oklahoma is the third cheapest state to buy a house in the US. The state is known for its friendly people, diverse landscape, and affordable cost of living, making it an attractive option for homebuyers looking for affordable housing.
4. Arkansas
With a Zillow Home Value Index of $199,830, Arkansas is the fourth cheapest state to buy a house in the US. The state is known for its natural beauty and Southern charm and offers a low cost of living and affordable housing options.
5. Louisiana
Louisiana has a Zillow Home Value Index of $200,028, making it the fifth cheapest state to buy a house in the US. The state is famous for its food, music, and culture, but also faces challenges such as high crime rates and vulnerability to natural disasters.
6. Kentucky
Kentucky has a Zillow Home Value Index of $201,843, making it the sixth cheapest state to buy a house in the US. The state is famous for its bourbon, horse racing, and Southern hospitality, and offers a low cost of living and affordable housing options.
7. Iowa
With a Zillow Home Value Index of $211,572, Iowa is the seventh cheapest state to buy a house in the US. The state is known for its agriculture and friendly people and offers a low cost of living and affordable housing options.
9. Kansas
Kansas has a Zillow Home Value Index of $216,151, making it the eighth cheapest state to buy a house in the US. The state is known for its prairies, wheat fields, and friendly people, and offers a low cost of living and affordable housing options.
9. Ohio
Ohio has a Zillow Home Value Index of $219,781, making it the ninth cheapest state to buy a house in the US. The state is known for its industrial history, sports teams, and affordability, with many cities offering a low cost of living and affordable housing options.
10. Alabama
With a Zillow Home Value Index of $222,005, Alabama is the tenth cheapest state to buy a house in the US. The state is known for its Southern hospitality, history, and Gulf Coast beaches, and offers a low cost of living and affordable housing options.
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Top 10 Cheapest Counties in the US to Buy a House
Buying a home can be a major financial decision, and the cost of housing can vary greatly depending on the location. While some areas of the country may have high housing costs, there are also many counties where homes are relatively affordable. In this section, we will look at the top 10 cheapest counties in the United States to buy a house according to the Zillow Home Value Index (ZHVI) as of March 31, 2023. We will explore some of the features that make these counties attractive to home buyers.
1. McDowell County, WV
With a ZHVI of just $30,122, McDowell County is the most affordable county in the country to buy a home. Located in the southern part of West Virginia, McDowell County has a rich cultural history and is home to the McDowell County War Museum and Coal Heritage Trail.
2. Wyoming County, WV
Wyoming County has a ZHVI of $46,292 and is a rugged mountainous region with a rich history of coal mining. The county is also a popular destination for outdoor recreation, including hiking, fishing, and hunting.
3. Phillips County, AR
With a ZHVI of $48,495, Phillips County is a rural area with a rich agricultural history. The county is known for the production of rice, soybeans, and cotton, and is home to numerous farms and farmers' markets.
4. Alexander County, IL
Located along the scenic Mississippi River, Alexander County has a ZHVI of $50,579. The county is known for its picturesque landscapes and outdoor recreation opportunities, including hiking, boating, and fishing.
5. Harmon County, OK
Located in the southwestern part of the state, Harmon County has a ZHVI of $52,662. The county is known for its expansive grasslands and rugged terrain and is a popular destination for hunting and fishing.
6. Hardeman County, TX
With a ZHVI of $58,236, Hardeman County is a rural area with a rich history of ranching and agriculture. The county is also home to the historic Old Mobeetie Texas Ghost Town.
7. East Carroll Parish, LA
With a ZHVI of $61,786, East Carroll Parish is located along the Mississippi River and is known for its diverse wildlife and hunting opportunities. The parish is also home to the Poverty Point National Monument, a UNESCO World Heritage Site that dates back over 3,000 years.
8. Cochran County, TX
With a ZHVI of $62,534, Cochran County is a rural area known for its scenic beauty. The county is home to vast fields of sunflowers and picturesque wind turbines, as well as the historic town of Morton.
9. Bertie County, NC
With a ZHVI of $63,823, Bertie County is a rural area with a rich history dating back to colonial times. The county is home to the charming town of Windsor and numerous historic sites, including the Hope Plantation and Somerset Place State Historic Site.
10. Claiborne Parish, LA
Claiborne Parish has a ZHVI of $78,549 and is home to scenic waterways and state parks, including Lake Claiborne State Park. The parish is also known for its rich cultural heritage and historic landmarks, including the Louisiana Political Museum and Hall of Fame.
Most Affordable Housing Markets to Buy a House
Here's another report published on Forbes in October 2022. They also looked at 100 metro areas with a population of at least 100,000 to identify the top 10 most affordable cities for homebuyers. They looked at several factors to gauge affordability, including the median income of that city, average home costs, and median real estate taxes.
1. Detroit, Michigan
Motor City ranks first on the list of the most affordable areas to buy a property. Despite the fact that the median salary is among the lowest of the cheap locations on this list, house costs are also among the lowest. In reality, the average Detroit household will spend only approximately 6% of its monthly income on mortgage payments, which is extraordinarily low.
2. Cleveland, Ohio
Cleveland is not only a cheap city, but it is also a young one; the median age is around 36, which is slightly lower than the national average. Cleveland's vibrancy is what distinguishes it. People enjoy water activities and boat parties in this town on Lake Erie.
3. Toledo, Ohio
Toledo ranks third in the list of most affordable housing markets for buyers. It is in an excellent geographical location. It's a one-hour trip to Detroit, a two-hour journey to Cleveland, and a four-hour drive to Chicago from the western edge of Lake Erie. Although Toledo has struggled with a poor economy since the 1980s, the rust belt city has made progress toward a brighter future in recent years.
4. Memphis, Tennessee
Memphis is one of the most affordable cities in the United States, with a cost of living that is 19% lower than the national average, making this Southern metropolis a terrific place to call home! People who live in Memphis do not have to pay state income tax, which allows them to save even more money.
5. Baltimore, Maryland
6. Rochester, New York
Rochester made Forbes' list of most affordable cities—but it could be poised to become slightly less affordable in the future. According to a recent report by real estate analytics firm ATTOM Data Solutions, Rochester was among the metro areas (with a population of at least 1 million in 2020) that saw the biggest leaps in return on investment (ROI) for sellers in the country, up by 49.9%.
It is not surprising that many properties in Rochester receive several offers, and that the majority of homes sell within 12 days for approximately 1% more than the asking price. The reason Rochester's real estate market is so affordable is that higher-paying jobs become scarcer the farther north you travel in New York State.
7. Milwaukee, Wisconsin
Milwaukee metro area is one of the more affordable places to own a home in the U.S. It has become an attractive destination for people fleeing more expensive metro areas, including Chicago, according to data from Apartment List. Just over 90 miles north of the Windy City, Milwaukee median home listing prices are almost half as much as Chicago, which was $370,000 in 2020.
8. Montgomery, Alabama
The Montgomery housing market is supported by a number of demographic and economic indicators. The neighborhood offers inexpensive homes and a robust economy to ensure sustainability. Perhaps even more importantly, prices remain lower than in the majority of the country. This may be the ideal moment to purchase a property in this city. Montgomery Alabama offers the lowest median annual real estate taxes on this list, totaling about $512 per year. Not only is it a great place for low taxes, but Montgomery also offers promising career opportunities.
9. Buffalo, New York
Buffalo, New York, is the most affordable housing market in the state. It has gone through a major transformation over the last decade, with new restaurants, entertainment, activities, and events popping up year after year. Buffalo has a population of less than 300,000, and although it historically had more billionaires per capita than anywhere else on Earth, it is now an economical option to live in a large city.
10. Kansas City, Kansas
Kansas is one of the most affordable cities in the United States and offers superb museums, pleasant people, entertaining activities, and delicious barbecues. The Midwest is home to some of the most affordable regions for first-time homeowners, and Kansas City is a prime example. With median listing prices below $200,000, this neighborhood may be ideal for budget-conscious purchasers.
Source:
- https://www.zillow.com/research/data/
- https://www.forbes.com/advisor/mortgages/real-estate/most-affordable-cities-to-buy-a-home/
