MoneyINC Logo
Years of

The 20 Cheapest States To Buy a House

West Virginia

The price of houses can vary from one city or county to another within the same states, but some states have a better average than others for affordable housing. Are you looking for a place to buy a house at a bargain, and you don't mind relocating? If so, here are the 20 cheapest states to buy a house in 2022, ranked in order of affordability, with 20 being the highest and one the lowest. A combination of price, income ranks affordability, and payment-to-income ratio, so the lowest prices are not necessarily the cheapest.


20. Georgia Median house price: $176,000

Homebuyer ranks the cheapest states to buy houses by the percentage of income payment based on median price compared to median household income. In Georgia, you'll pay around $176K for a home in areas where the household members bring in $74.4K per year. The payment-to-income ratio is 13.43%. It's the 20th cheapest state to buy a house in 2022.


19. Texas Median house price: $172,500

The cost of a home in Texas is less than in Georgia, while the average household income is $75.1K per year. Homeowners spend 13.10% of their monthly income on mortgage payments. It comes out to around $820 per month, according to statistics. Although it's far cheaper to buy a house in this state than in 31 others, you can find homes for less by looking in other parts of the country.


18. Illinois Median house price: $194, 500

If you're looking for a place in Illinois, you can expect to pay an average of $194.5K. Homes are higher in Illinois than Texas or Georgia, but the average family income is nearly $10,000. The statistics show that 13.04% of household income of $85k per year goes on the mortgage payment, which averages $924.09. The price of houses tends to be higher in large metropolitan areas than in rural, outlying regions.


17. Wisconsin Median house price: $180.600

The average household income for residents in the state of Wisconsin is around $80.3k. Homeowners with a mortgage spend an average of $858.05 monthly on the payment. The price is reasonable compared with some of the more expensive places in the country to live, and the average payment-to-income ratio is better than in Illinois at just 12.82%. If you don't mind the harsh winters and freezing temperatures in Wisconsin, it's an affordable option for homeowners.


16. Pennsylvania Median house price: $180,200

The cost of housing in Pennsylvania is comparable to Wisconsin but averages a few hundred dollars less. The more significant difference is in the payment-to-income ratio of only 12.68%. The average household earnings are $81,000 per year with a mortgage payment of $856. These facts make Pennsylvania the 16th cheapest place in the US to buy a house for 2022. Paralegal Realtors adds that housing affordability has hit a new low in Pennsylvania over the past ten years, showing the prices are not as reasonable as they once were. However, it's still cheaper than most other US states.


15. Louisiana Median home price: $163,100

Louisiana comes in at number 25 in its ranking for the population for its size. Nearly 4.7 million people call it home. Nearly 70% of the residents are homeowners. They work at jobs in tourism, agriculture, or transportation as the major industries, with a cross-section of other types of employment available. The average annual household income is $64.7K, with mortgage payments at $774.91 for those with good credit and low-interest rates. The payment-to-income ratio is 14.7%, with the cheapest cities to buy a house in Monroe, Marrero, Alexandria, and Shreveport.

The typical home in Louisiana costs $205,972. A homeowner can expect an average of 1,786 square feet of living space for this price. With a real estate property tax rate of 0.55%, the typical homeowner can expect to pay $1,133 annually. Homeownership in Louisiana is at 69.7%.

South Dakota

14. South Dakota Median house price: $167,100

South Dakota is one of the cheaper places to buy a house, and the average household income is $75.5K per year. On average, homeowners with good to excellent credit ratings pay $793.91 monthly in mortgage payments. Home Snacks confirms that the cheapest places to buy a house and live in South Dakota are Clear lake, Parkston, Ipswich, De Smet, and Lemmon, and Britton. The payment-to-income ratio in South Dakota is 12.62 at the last check-in in 2022.


13. Missouri Median house price: $157,200

Missouri is one of the more affordable states to buy a house. The average household income is $73.3K per year. Homeowners with a solid credit score can lock down monthly mortgage payments as low as $746.88 per month, depending on the loan amount and the contract terms. The payment-to-income ratio is 12.40%.

North Dakota

12. North Dakota Median house price: $193,900

Although the median house price is nearly $194K, the average household income is far higher than most other states on our list. It's $90.1K. The monthly mortgage payment is $921.24, which is still cheaper than rent. The payment-to-income ratio is lower at 12.27%.


11. Nebraska Median house price: $155,800-$233,006

Roofstock explains that Nebraska is a midwestern state known for its agricultural, IT, manufacturing, and transportation industries. The population is nearly 2 million, and it's a state where you can find areas with median house prices that range from $155.8k to just over $233K, depending on the county and city. The median family income is $79.4K, with an average payment-to-income ratio of 11.19%. In some less expensive markets, buyers with good credit can pay as little as $740 monthly on their mortgages. It's cheaper than the average of $1,103 per month for rent. Scottsbluff, Hastings, Lexington, and Beatrice are the cities with the most affordable houses.


10. Michigan Median house price: $154,900

Houses in Michigan range from $154.9K to 228,120, with the less expensive homes in Saginaw, Bay City, Detroit, and Flint. You can expect to pay more in Lansing, where technology companies offer higher-paying jobs. The average household income is $75.4K per year. You can expect to pay around $735 per month in mortgage payments if you have an excellent credit rating with a lender offering low rates. Jobs are mainly in the IT, defense, natural resources, and manufacturing sectors. The payment to income ratio is 11.73% for 2022.


9. Kentucky Median house price: $141,000

In Kentucky, the median household income is $65.1K. The highest jobs are agriculture, natural resources, healthcare, and manufacturing. Kentucky has a far higher population than Nebraska's 2 million, the 26th largest state. Homes are more expensive in the Louisville area with an average of $190K, but they're more affordable in other state cities. The cheapest cities to buy a house are bowling Green, Covington, Owensboro, and Hopkinsville, with an average payment-to-income ratio of $12.35%.


8. Alabama Median house price: $142,700 to $197,667

Alabama is a more significant state with more than 5 million residents. It's ranked as the 24th largest, with Birmingham and Montgomery as its largest cities. Prices are rising on homes in the state, but it's still among the cheapest, with a median household income of $66.7K and a low average mortgage payment of $77.99 per month. The payment to ratio income is $12.20%. The cheapest places to buy houses in Alabama are Phoenix City, Birmingham, Montgomery, and Gadsden.


7. Kansas Median house price: $151,900

In Kansas, the most plentiful jobs are in agriculture, natural resources, and manufacturing. The average annual household income is $77.4K. If you're looking for the lowest house prices, look in Salina, Topeka, Kansas City, or Hutchinson. The state ranks 35th in size with a more sparse population. In the more expensive areas, housing can average up to $199.893. It depends on which city and neighborhood you choose to settle in. Statewide, the payment-to-income ratio for homeowners is 11.19%.


6. Ohio Median house price: $145,700

World Population Review confirms that Ohio is the 10th cheapest state to buy a house in 2022. The midwestern state is massive at the 7th largest with a residential base of almost 12 million people. The state's economy depends on financial services and manufacturing, offering the most jobs in these industries. The average household income is $75,3K, with a payment-to-income ratio of 11.03%. The cheapest houses are in Dayton, Marion, Warren, and Youngstown. The average mortgage payment for homeowners with excellent credit is $692 per month. 67% of the people who live in Ohio are homeowners, and the rest pay rent.


5. Indiana Median house price: $141,700

Indiana is the 17th largest state in the nation, with a residential population of 6.8 million. The primary industries feeding the economy are agriculture, manufacturing, and healthcare. On the high end of the home value scale are the more expensive neighborhoods in larger cities, with prices averaging $212,953. The cheapest cities to buy houses are Anderson, Muncie, Richmond, and Gary. The average annual household income is $73,000, with a payment-to-income ratio of 11.02%.


4. Iowa Median house price: $147,800

Up next confirms that the median house price: $147,800 to $158,930. The average annual household income is $79.5K. It's far cheaper than states that offer coastal communities and beaches. Iowa is tucked away in the center of the United States with a strong agricultural economy. Homeowners with exceptional credit scores have an average mortgage payment of $702.22. The payment-to-income ratio is 10.60%.


3. Arkansas Median home price: $127,800

Arkansas is one of the smaller states in the southern region of the United States, with a comparatively low population density compared to most other states. Its median house price ranges between $127.8K to $142.070K, depending on the neighborhood and the city. The average household income is $60,700 per year. Homeowners with good credit ratings enjoy monthly mortgage payments as low as $600. The payment-to-income ratio is 12%. Most describe living in Arkansas as laid back, with many rural areas to choose from and metropolitan areas with affordable housing options.


2. Mississippi Median house price: $119,000

Mississippi is a state with houses that are built off the grid and with sustainable materials. Building codes are relaxed enough to allow homebuilders to engage in various types of housing construction that might not be allowed in other states. The average house price ranges between $119K and $134,125, depending on the city and neighborhood.

West Virginia

1. West Virginia Median house price: $113,626

West Virginia is the cheapest state to buy a house for 2022. It's a beautiful state that has mountains and beautiful landscapes. West Virginia is among the most affordable places to live and buy a home. The average household income is $60.3K per year. Homeowners with good credit scores are fortunate to have their mortgage payments as low as $568. The payment-to-income ratio is 11.31%.

The cheapest place to live in West Virginia is in the Beckley metropolitan area. The cost of living in West Virginia is also lower than in most states, which makes it an attractive place to buy a home and make a life. You can find homes as low as $107K in West Virginia; however, it's not the state's average house cost. Some neighborhoods in the larger cities are high-end, which raises the average price of homes considerably. There are plenty of good deals for you in the cheapest state to buy a house.

Dana Hanson

Written by Dana Hanson

Dana has extensive professional writing experience including technical and report writing, informational articles, persuasive articles, contrast and comparison, grant applications, and advertisement. She also enjoys creative writing, content writing on nearly any topic (particularly business and lifestyle), because as a lifelong learner, she loves to do research and possess a high skill level in this area. Her academic degrees include AA social Sci/BA English/MEd Adult Ed & Community & Human Resource Development and ABD in PhD studies in Indust & Org Psychology.

Read more posts by Dana Hanson

Related Articles

Stay ahead of the curve with our most recent guides and articles on , freshly curated by our diligent editorial team for your immediate perusal.
As featured on:

Wealth Insight!
Subscribe to our Exclusive Newsletter

Dive into the world of wealth and extravagance with Money Inc! Discover stock tips, businesses, luxury items, and travel experiences curated for the affluent observer.
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram