Median Home Prices By State: A 2024 Guide

Understanding home prices is vital for budgeting and planning your financial future, whether you're considering buying a house in your current location or relocating. Median home values and housing market trends provide valuable insights into what to expect before diving into the home buying process, but keep in mind that these trends can vary depending on the region. This list of median housing costs across the U.S. equips you with essential information to prepare for homeownership, regardless of your future location.

How Much Does A House Cost In The United States?

In the second quarter of 2023, the median home price in the U.S. dropped to $416,100, a significant decrease from $479,500 in the fourth quarter of 2022, yet notably higher than the $358,700 recorded by the end of 2020. When purchasing a home, there's typically a difference between the listed price and the final sale price, often lower due to negotiations, though in competitive markets, final sale prices may exceed the initial listing sale price.

In August 2023, the median listing price in the U.S. stood at $435,450, $19,350 higher than the median sale price. While housing costs vary by region, influenced by factors such as cost of living and home size, it's essential to consider how market trends, like rising interest rates, impact pricing dynamics, potentially contributing to competitive seller's markets and higher home prices.

Median Home Prices Over Time

The following chart illustrates the fluctuations in home prices over the years, providing valuable insight into the housing market's trends and dynamics. By examining these trends, we can gain a better understanding of how home prices have evolved and anticipate potential future developments in the market.

Median Home Price By State

While it's essential to grasp the median listing prices in your desired area, it's equally vital to weigh this data against other factors like the median household income. Ultimately, you might find it acceptable to invest more in a home in a new state if it means accessing higher-paying job opportunities.

Explore the chart below to delve into median home prices across the U.S.

Which States Have The Highest Median Home Prices?

While the following states boast the highest average listing prices for single-family homes, it doesn't necessarily mean you should dismiss them from your list of potential options. These states may command higher prices due to larger home sizes and higher household incomes, aligning with their status as popular destinations. It's also worth noting that there's often room for negotiation with sellers, so exploring all options is advisable.

California

In California, buying a house offers a range of options, but it's important to consider the significant variations in the cost of living and demographics across the state. While major cities like Los Angeles and San Francisco boast high median home prices due to their vibrant urban settings and strong job markets, there are more affordable alternatives in places like Bakersfield and Fresno. California is celebrated for its cultural diversity, with a large immigrant population and diverse communities enriching its social fabric.

Whether you're drawn to city life or prefer tranquil suburban neighborhoods, California provides numerous choices for prospective home buyers. Consider these stats when considering homes for sale in California:

• Median sale price: $785,385.75
• Median list price: $733,589.50
• Average square feet: 1,856
• Average household income: $91,551

Hawaii

Buying a house in Hawaii offers a distinctive lifestyle characterized by its breathtaking natural scenery, diverse culture and laid-back island living. With its pristine beaches and lush rainforests, Hawaii is a haven for outdoor enthusiasts and those seeking tranquility in nature. However, it's important to note that Hawaii's cost of living ranks among the highest in the U.S., attributed to factors like limited land availability and the need to import goods. Demographically, Hawaii is celebrated for its multicultural population, blending native Hawaiian, Asian, Pacific Islander and mainland American influences.

Despite the challenges of affordability, Hawaii's allure as a paradise in the Pacific continues to attract home buyers seeking a unique and enriching lifestyle.

• Median sale price: $757,032.00
• Median list price: $549,320
• Average square feet: 1,244
• Average household income: $92,458

District Of Columbia (D.C.)

In Washington, D.C., purchasing a house provides a distinctive urban living experience at the heart of the nation's capital. As a district rather than a state, D.C. offers a vibrant cultural scene, rich historical landmarks and proximity to government institutions and international embassies. However, the cost of living in D.C. ranks among the highest in the country, reflecting its status as a major metropolitan area.

Despite its compact size, Washington, D.C. boasts a diverse demographic, with residents hailing from various ethnicities, cultures and socioeconomic backgrounds.

• Median sale price: $655,071.25
• Median list price: $649,514
• Average square feet: 1,661
• Average household income: $101,027

Which States Have The Lowest Median Home Prices?

Among the cheapest states to purchase a home are typically those with lower costs of living and less demand, primarily in the Midwest and Southern regions, such as Mississippi, West Virginia, Arkansas and Alabama. These areas often offer more affordable housing markets due to factors like lower wages and less competition among buyers. However, it's crucial to consider factors beyond just price, including amenities and potential for future growth, when evaluating the affordability of a state for home buyers.

West Virginia

West Virginia, nestled in the Appalachian Mountains, is renowned for its picturesque landscapes and affordable cost of living. The state boasts a lower cost of living compared to the national average, making it an attractive option for those seeking affordable housing. West Virginia provides ample opportunities for outdoor recreation and a tranquil lifestyle amidst stunning natural beauty.

• Median sale price: $218,648.50
• Median list price: $218,296.25
• Average square feet: 1,914
• Average household income: $54,329

Ohio

Ohio, located in the Midwest, features diverse landscapes from bustling cities to serene rural areas. It offers an affordable cost of living, appealing to home buyers. Demographically, Ohio's vibrant communities blend various ethnicities and cultures. With a robust economy, top-notch educational institutions and rich cultural heritage, Ohio provides an attractive living environment for residents.

• Median sale price: $222,715.00
• Median list price: $225,043.75
• Average square feet: 1,896
• Average household income: $65,720

Oklahoma

Oklahoma, nestled in the Southern Plains, features diverse landscapes, and offers a relatively affordable cost of living, making it attractive to home buyers. With a blend of urban and rural populations and a significant Native American influence, Oklahoma boasts a culturally rich environment. Its strong sense of community, rich history and abundant outdoor recreational opportunities make it an inviting and affordable place to live.

• Median sale price: $225,348.25
• Median list price: $249,840
• Average square feet: 1,859
• Average household income: $59,673

Tips For Saving To Buy A House

Saving for a house requires careful planning and disciplined financial management. Consider these tips to help your financial efforts:

• Save for a down payment early: Saving for a down payment early is beneficial as it reduces the financial strain of purchasing a home and improves your chances of securing favorable mortgage terms. By starting early, you demonstrate financial responsibility to lenders and have more time to meet your savings goals.
• Use a home affordability calculator: Using a home affordability calculator is beneficial as it helps individuals determine their affordable home price based on their financial situation, guiding them in making informed decisions and avoiding financial strain. By inputting relevant information, prospective home buyers can estimate their maximum affordable home price, ensuring they adhere to budgetary constraints.
• Find the right home loan: Ensuring the right home loan is secured is vital as it aligns financing with borrowers' financial objectives and circumstances, potentially leading to long-term savings. By comparing various loan options and evaluating factors such as interest rates, terms and fees, borrowers can make well-informed decisions that meet their needs and budget requirements.
• Research first-time home buyer programs: Exploring first-time home buyer programs is essential as it offers valuable insights into tailored assistance options, potentially alleviating financial burdens and streamlining the path to homeownership. By delving into these programs, individuals gain access to resources like down payment assistance and favorable loan terms, empowering them to navigate the home buying journey with confidence and ease.
• Stay positive: Maintaining a positive outlook during the home buying process is essential for sustaining motivation and resilience, particularly during challenging negotiations or rejected offers, as it enables individuals to navigate obstacles with optimism and remain focused on their goal of homeownership.

Median Home Price FAQs

Below, you'll find answers to common inquiries regarding the home buying process and home prices across different states.

What’s the difference between the median and average sale price of a home?

The median sale price of a home is essentially the midpoint of all sale prices, indicating the price at which half of the homes sold for more and half for less. Conversely, the average sale price is determined by adding up all sale prices and dividing them by the total number of sales. While the median offers a clearer picture of typical prices and is less affected by extreme values, the average can be influenced by outlier prices, particularly in regions with wide-ranging home values.

What is the average home price in the U.S.?

Based on the latest data, the average home price in the U.S. stands around $416,100. This value represents the mean of all home sale prices nationwide and offers a broad perspective on pricing trends within the housing market. It's worth considering that actual home prices can fluctuate considerably based on factors like geographical location, property size and the prevailing conditions of the local market.

Why is the median home price important?

Unlike the average price, the median home price holds significance as it offers a more precise insight into typical prices within a specific area. By zeroing in on the midpoint of all sale prices, the median mitigates the influence of extreme values, providing a clearer understanding of prevailing market trends. This data is essential for home buyers, sellers and real estate professionals alike as they navigate the housing market and make well-informed decisions.

What factors impact median home prices?

Median home prices can be affected by various factors, including location, market demand, economic conditions and housing supply. Regions with high demand and limited inventory typically see higher median prices, while those with economic challenges or oversupply may experience lower prices. Additionally, factors such as job opportunities, amenities and local regulations also contribute to the fluctuations in median home prices within specific areas.

Which state is the most affordable?

Determining the most affordable state depends on various factors such as median home prices, cost of living and income levels. States with lower median home prices relative to the average income and cost of living may be considered more affordable. However, affordability is subjective and can vary based on individual preferences and circumstances.

The Bottom Line

Purchasing a home in any state entails a thorough process and familiarizing yourself with home prices beforehand can assist in establishing your budget and expectations. However, it's important to note that medians represent the midpoint within a range of figures, implying that you may pay either above or below the median home price in a particular state based on factors such as location, size and condition of the property.

When you're prepared, kick-start your mortgage application and move one step closer to becoming a homeowner.