What Are the Lowest-Cost States for Buying a Home?

When purchasing a home, there are numerous factors to consider.

Get to know the best states to buy an affordable home.

Average Price of Least Expensive Homes

Future purchasers examine factors such as proximity to family, public school rankings, safety, climate, and proximity to large cities.

However, one of the most crucial variables to consider is the price.

In the United States, the median home value is $247,084.

There are 11 states where the median home value is more than $100,000 lower than the national average.

Mississippi, West Virginia, and Arkansas are among the states with the least expensive home values.

The cost of purchasing a home differs significantly between states.

Knowing where you want to live ahead of time will help you figure out what you can get for your money and how much you’ll need to save for a down payment on the size and location of the home you desire.

Procedures in Buying Cheap Homes In A State

The American dream includes owning a home. Purchasing a home is a significant investment that necessitates a significant amount of time and work.

Buying a home is, unsurprisingly, a lengthy, multi-step process such as the following:

  • Start looking for postings as soon as possible.
  • Make a financial plan. What you can get within your budget varies greatly by location.
  • Get pre-qualified and pre-approved for a mortgage loan.
  • Find the ideal real estate agent for you.
  • Make an offer on your home while you’re out shopping.
  • Get your home inspected.
  • To get your loan, work with a mortgage banker.
  • Get your home evaluated.
  • Organize your documents (a title company will typically handle this).
  • Close the sale by completing all the documentation.

Low Cost States To Buy A Home

Mississippi

With a typical home value of $114,500, Mississippi is the cheapest state to buy a home in.

This is less than half of the $247,084 median home value in the United States.

Mississippi’s typical home size is 1,479 square feet, which is greater than some of the more expensive states’ median home sizes.

People in Mississippi will pay 0.81 percent of their home’s value in property taxes every year, which means they’ll pay $924 in taxes on the average home value.

West Virginia

West Virginia is the second-most affordable state in which to buy a home.

West Virginia’s typical home value is $115,000, barely $500 more than Mississippi’s and 46.5 percent higher than the national average.

A homeowner in West Virginia may expect to obtain roughly 1,472 square feet for $115,000.

With a 0.59 percent property tax rate, homeowners can expect to pay around $678 in state property taxes per year.

Arkansas

Arkansas has the third-lowest median home value in the country, at $123,300.

Homebuyers can expect a bit greater space of 1,508 square feet with a somewhat higher median home price.

Arkansas’s state property tax rate is 0.63 percent, which is the 10th lowest in the country.

This means that for a home worth the median price, the state will pay just $776 in state taxes each year.

Oklahoma

Oklahoma’s typical home value is $130,900, over $100,000 less than the national average of $247,082.

Oklahoma has a median home size of 1,508 square feet, which is the same as Arkansas but costs more.

Homeowners in Oklahoma pay a 0.90 percent property tax rate, which amounts to around $1,177 in annual taxes based on the typical home value.

Kentucky

With a typical home value of $135,300, Kentucky is the fifth cheapest state to buy a home in.

Kentucky’s median home size is 1,456 square feet, which is somewhat less than the first four states on this list.

The effective state property tax rate in Kentucky is 0.86 percent, which implies that, based on the median home value, a homeowner would pay around $1,166 in state property taxes per year.

Indiana

Indiana’s typical home value is $135,400, barely $100 more than Kentucky’s. Indiana’s median home value is still more than $100,000 lower than the national average.

The state has the largest median home size on the list, at 1,568 square feet.

Indiana’s effective state property tax rate is 0.86 percent, similar to Kentucky’s. Property taxes in Indiana are around $1,164 per year based on the typical home price.

Alabama

Alabama is the seventh-most affordable state in which to buy a home.

The median home price in Alabama is $137,200, just about $110,000 less than the national average of $247,082.

Alabama has the largest median home size on the list at 1,588 square feet.

Alabama has the second-lowest property tax rate in the country, at 0.42 percent.

Because of this, and because of the low median home value, homeowners only pay roughly $572 in state property taxes per year.

Ohio

The median home value in Ohio is $140,000, with a living home of 1,543 square feet. The median home value in Ohio is over $100,000 less than the national average.

With a rate of 1.58 percent, Ohio’s state property taxes are much higher than the other states on this list.

Based on Ohio’s typical home price, this results in homeowners paying around $2,205 in state property taxes each year.

Iowa

Iowa has the ninth-lowest median home value in the country, at $142,300. You’ll get roughly 1,492 square feet for this price.

With a rate of 1.56 percent, Iowa’s state property taxes are relatively expensive.

Property taxes in Iowa are around $2,219 per year based on the typical home value.

Kansas

With a typical home value of $145,400, Kansas is the ninth cheapest state to buy a home in.
A homeowner can obtain roughly 1,522 square feet for this price.

Kansas has an effective state property tax rate of 1.41 percent, which means that homeowners pay about $2,045 in taxes each year.