The 15 Cheapest States To Buy A House In 2024

There are a lot of reasons why we choose to live in the places we do – convenience, proximity to family and friends, personal preferences, jobs and the like.

One of the biggest factors, naturally, is affordability. After all, buying a house is the largest purchase most Americans will make in their lifetime. And where you live can have a huge impact on your finances, for better or worse.

To help you determine where to live and save, we found the top 15 cheapest states to buy a house.

Comparing The Cheapest States To Buy A House To The National Average

• U.S. population: 334,914,895
• Median household income: $75,149
• Median home sold price: $431,000

Many experts recommend using the 30% rule to determine how much you should spend on housing. Basically, the rule states that you should spend no more than 30% of your monthly gross income on monthly housing costs when buying a home. Those who spend more than 30% on these costs can be considered “cost burdened.” While how much a person should spend each month on housing varies from household to household, the 30% rule gives a general idea of how affordable a given area is because it compares median income to median housing costs.

According to the U.S. Census, U.S. homeowners with a mortgage spend around $1,828 each month on housing costs, with the national median household income coming in just below $75,150. If you divide the nation’s average monthly mortgage costs by the average gross monthly income, this means the nation’s average is spending under 30% of their income on housing.

15 Cheapest States To Buy A House

Like we see with the 30% rule, true affordability isn’t just about which houses cost the least amount of money to buy. Home prices, average incomes and local cost of living expenses all factor into calculating a state’s true affordability.

Let’s say, for example, you move to an area where home prices are well below the national average, but average incomes are also relatively low. Even though the home prices are cheap, if your income is too low, you still might not be able to afford to purchase one of those cheap homes. Alternatively, you could move to an area where home prices are higher, but average incomes are also higher to better match the area’s cost of living. 

All states have pockets of affordable homes, but if the cost of living is too high, it may prove difficult for buyers to realistically afford.

Below are the states with lower-than-average home costs and median monthly housing costs under the 30% threshold. These are the cheapest states to buy a house, based on housing cost ratios, which are calculated from the state’s average monthly gross income and home costs.

1. West Virginia

Mountainous, beautiful West Virginia is a great choice for those who love nature and every activity that takes place in it, including hiking, fishing or even whitewater rafting. In this state, you’ll get beautiful natural views no matter where you are.

West Virginia also has a few smaller cities, such as the charming state capital of Charleston, for those who don’t want to feel quite so remote.

2. Oklahoma

Louisiana offers a unique blend of cultural, historical and natural attractions and is heavily influenced by Native American, French and Spanish cultures. Cities like New Orleans have preserved historic architecture that take you back in time. If you’re looking for something livelier, Mardi Gras and the annual jazz and heritage festival attract visitors from all over the world.

The state is also very affordable. First-time home buyers in Louisiana may have better luck finding an affordable home than in other parts of the country.

4. Mississippi

There’s more to the Magnolia State than a big river. Known as the birthplace of blues, Mississippi has deep Southern roots with diverse cultures and traditions. Places like Jackson have a rich culinary history and plenty of music venues to explore new sights and sounds. If you prefer somewhere a little quieter, the Mississippi Delta is lined with small, quaint towns, and is North America’s largest wetland area and bottomland hardwood forest. 

5. Kansas

Kansas is known for its plains that grow wheat and corn, but the Sunflower State is also home to gorgeous parks, forests and natural preserves. Besides agriculture, Kansas is also a leader in manufacturing, aerospace and defense and renewable energy. 

Kansas is very affordable and has a relatively low cost of living. Housing, in particular, is cheaper compared to other states.

6. Iowa

Though the state is the country’s top producer of corn, Iowa isn’t all rural farmland. It’s a particularly great place to live for those who are looking for that “city living” experience with a more affordable cost of living.

There’s the arts and culture of Cedar Rapids, the shopping and eats of nearby Iowa City or the ample economic opportunity of Des Moines (the state of Iowa has the third lowest unemployment rate in the country), to name a few of Iowa’s many great urban areas.

7. Arkansas

Known for its lakes, rivers and hot springs, Arkansas is a great place to live if you love the outdoors. The state has a wide range of indoor and outdoor attractions, from 218-mile-long hiking trails through the Ozark Mountains to the only active diamond mine in the U.S.

For a picturesque vibe, the mountain town of Eureka Springs is lined with Victorian-style homes, offering boutiques and antique shops, and is known as one of the nation’s top art destinations. For more of an urban experience, the capital city of Little Rock is a historic hub, offering plenty of museums, restaurants and nightlife to enjoy.

8. Illinois

Illinois may be the most well-known for the Windy City, Chicago, but it’s also known as one of the most culturally vibrant states that attracts the country’s brightest minds.

Buying a house in Illinois means you get to enjoy a lower cost of living compared to other states. However, Illinois also experiences extreme weather during the winter, such as heavy snowfall and ice, especially in northern parts of the state along Lake Michigan, so don’t forget your winter gear!

9. Nebraska

Situated where the Midwest meets the Great Plains, the state of Nebraska has a lot to offer home buyers with a relatively low cost of living and impressive average incomes. 

And though the Cornhusker State may be best known for its agriculture, there’s plenty to experience beyond the obvious plains, sand dunes and rock formations of the outdoors, from the bustling Gateway to the West in Omaha to the historic city of Lincoln.

10. Ohio

Did you know that an unusual number of astronauts hail from Ohio?

If the thought of potentially raising the next Neil Armstrong doesn’t convince you to move your family to Ohio, the affordable living, vibrant cities and ample cultural offerings just might.

The state also has a lot of natural beauty and offers plenty of opportunities for adventure from the splendor of Hocking Hills State Park to the sunny islands off the coast of Lake Erie, making Ohio a great place to live.

11. Missouri

Food lovers, this state is for you. Missouri boasts not one but two iconic, signature dishes: St. Louis-style pizza and Kansas City barbecue.

Missouri is very affordable, great for families and its cities have something for every type of interest, whether that be the arts, shopping or dining. And for lovers of the outdoors, this state also offers 85 state parks and historic sites, with over 840 miles of hiking and biking trails.

12. Wyoming

It’s hard to come across another state that can compare to Wyoming’s natural beauty. From Yellowstone National Park to its scenic byways, Wyoming is an outdoor lover’s paradise. The state has larger cities, like Cheyenne and Jackson, but the Equality State is perfect for those who seek peace and quiet in their everyday life.

Wyoming is one of the best places to retire in the U.S. The state is also conveniently located near Montana, Colorado, Utah, Idaho, Nebraska and South Dakota, allowing easy access for adventurous road trips to the heart of the United States.

13. Alabama

Sitting between Georgia and Mississippi, Alabama is about as quintessential Southern as it gets. If you’re buying a house in Alabama, you’ll notice more affordable prices than in other parts of the country along with a lower cost of living.

While residents in rural Alabama enjoy life at a slower pace, bigger cities like Birmingham, Montgomery and Mobile have a bustling nightlife scene. Along the Gulf Coast, pristine white sand beaches line the shore, as well as the Gulf State Park, which has 28 miles of trails and nine different ecosystems. 

14. Michigan

Michigan is very affordable and extremely diverse, both in terms of its people and its locales. There’s the big city vibes and economic opportunity of Detroit and its many surrounding suburbs, the eternal coolness of Ann Arbor, the liveliness of Grand Rapids, the charm of Traverse City, the tranquility of the Upper Peninsula and much more. 

Avid hikers will find refuge in the state’s abundant natural offerings, while suburbanites will love the convenience of being close to a plethora of shopping and dining options.

15. Georgia

Georgia is the most well-known for the three Ps, or peaches, peanuts and pecans, and its Southern hospitality. The Peach State also has a rich history with sites like the historic district in Savannah, Civil War battlefields and antebellum homes. 

If you’re buying a house in Georgia, there’s also an abundance of job opportunities. Atlanta, the state’s capital, is a major economic hub. Home Depot, UPS, Coca-Cola and Delta Air Lines are among just a few of the companies headquartered in Atlanta.

What Are The Advantages Of States With The Cheapest Houses?

The biggest advantage of living in a state with cheaper housing is affordability. Cheaper housing gives you access to a wider selection of homes on the market and leaves more room in your budget to put toward savings or other expenses. With more disposable income, you also have the ability to enjoy a higher quality of life. This can include more free time to travel, enjoy hobbies or a night out with friends.

What Are The Disadvantages Of States With The Cheapest Houses?

While there are advantages to living in states with cheaper housing, there are also potential downsides to consider.

States with cheaper housing may not have the most robust job market. Limited job opportunities and lower income can be a big drawback, especially for those in a specialized industry or looking for competitive salaries. A lower income can also affect your standard of living and limit the amount of income you have at your disposal.

How To Choose The Right State With (Or Without) The Cheapest Houses

Uprooting your life to move to a new state isn’t a decision to make lightly. Just because the price is right doesn’t mean you’ll actually enjoy living there, so take the time to think through the benefits and drawbacks of an area before moving out of state.

Consider the types of activities you enjoy, the transportation options you need and the style of homes available when choosing a location. It’s important to decide if you prefer to live in the city or the suburbs, as some states have better options for each lifestyle. What’s right for one family may not be right for the next. As long as you choose a location that fits your needs, you’ll be able to find the perfect place to live without breaking the bank.

The Bottom Line

Searching for the cheapest real estate in the U.S. is a great way to save money on your new home – but buyers shouldn’t choose a location solely based on price. Still, if you’re moving to a new state, understanding its average real estate costs and cost of living can help you plan out your future budget.

Considering a change of pace? Get started with Rocket Mortgage^® today!

Methodology: Finding The Cheapest States To Buy A House

Rocket Homes 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 relevance.

Weights were then applied to each metric depending on their individual importance in the study, which are in the table below. 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.