These Are the Top 10 Cheapest States to Buy a Home in 2024
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Allison Bethell Contributing AuthorClose
Allison Bethell Contributing AuthorAllison Bethell is a writer, real estate investor, broker, small business owner, and consultant and has a B.A. from Villanova University in Sociology and Business. She has over 15 years of real estate experience, including flipping properties, selling houses, property management, luxury condominium development, as well as marketing and recruiting for large real estate brokerages. She has been featured in articles by outlets such as Forbes, The New York Times, The Street, and Realtor Magazine.
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Kelsey Morrison EditorClose
Kelsey Morrison EditorKelsey Morrison is an editor for HomeLight's Resource Centers. She brings six years of editorial experience covering real estate, home design, cooking, crafting, and pet care. With a background as a commerce editor at World of Good Brands (eHow.com and Cuteness.com) and an associate editor at Livabl, Kelsey holds a bachelor’s degree in Journalism from Concordia University in Montreal, Quebec.
At HomeLight, our vision is a world where every real estate transaction is simple, certain, and satisfying. Therefore, we promote strict editorial integrity in each of our posts.
Buying a house in the U.S. is expensive, but most homeowners and potential buyers know that it’s worth it. Whether you’ve been priced out of homeownership in your current state, are looking to settle somewhere with a lower cost of living, or want the most bang for your buck when it comes to your dream home, our list of the cheapest places to buy a house in the U.S.A. can help.
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It’s important to note that affordability factors can vary widely and our list is based on the median sale price in the 10 cheapest states to buy a house. We have also included some general metrics and the median days on market to give you a better idea of how active the real estate market is in each particular state.
Now let’s explore the 10 cheapest states to buy a house in 2024 and how much you can expect to pay as a home shopper.
Cheapest states to buy a house in the U.S.:
#1 Cheapest State: West Virginia
#2 Cheapest State: Ohio
#3 Cheapest State: Oklahoma
#4 Cheapest State: Iowa
#5 Cheapest State: Louisiana
#6 Cheapest State: Arkansas
#7 Cheapest State: Mississippi
#8 Cheapest State: Indiana
#9 Cheapest State: Alabama
#10 Cheapest State: Kentucky
West Virginia
Median home sale price: $193,000
Population: 1,770,071
Median household income: $55,217
Median days on market: 55
Nicknamed The Mountain State, West Virginia is a mostly rural state with a few small cities, beautiful scenery, and plenty of opportunities for outdoor activities. Its major cities are Charleston, Morgantown, and Huntington. While the state is the nation’s second-largest coal exporter, it shows promise in the natural gas industry and manufacturing sector.
Homebuyers come to the state for its overall affordability, welcoming people, access to the Appalachian Mountains, and outdoor activities such as hiking, whitewater rafting, fishing, skiing, and more.
There are some factors, however, that contribute to the state’s low property values – West Virginia ranks #50 for infrastructure, #50 for healthcare, and #47 for education, according to U.S. News.
The median home sale price in Huntington, which sits on the Ohio River, is $140,818. The median home sale price in Morgantown, home to West Virginia University, is $254,833. In the state’s capital, Charleston, the median home sale price amounts to $181,275.
Ohio
Median home sale price: $195,333
Population: 11,785,935
Median household income: $66,990
Median days on market: 41
The Buckeye State, so-called for its beloved state tree, is part of the midwest and borders Lake Erie. Ohio is home to vibrant cities like Cincinnati, Columbus, and Cleveland.
Cincinnati features charming neighborhoods and an exciting craft beer scene, while Columbus is home to The Ohio State University and the bustling North Market. In Cleveland, you’ll find The Rock and Roll Hall of Fame and a large waterfront shopping and nightlife area. The state has more than 40,000 miles of waterways and gets its name from the Ohio River.
Ohio ranks #16 among all states for affordability, with a cost of living index of 92.5 – however, job growth in the state is declining at a rate of -0.7% compared to the U.S. average of 0.2%.
The median home sale price in Ohio’s capital city of Columbus is $231,500. Cleveland offers even more affordability with a median sale price of $100,833. Meantime, in Cincinnati, the typical home sells for $229,250.
Oklahoma
Median home sale price: $206,366
Population: 4,053,824
Median household income: $61,364
Median days on market: 66
Oklahoma is known as The Sooner State because the first settlers claimed their stake on land before the official opening date. Oklahoma City and Tulsa are the largest cities in the state and the top industries include aerospace, biotechnology, and energy.
People often come to drive Route 66 and visit its many roadside attractions including a dedicated museum in Clinton. The state has a thriving art scene and is also famous for its delicious Oklahoma-style barbecue.
This southcentral state is an affordable place to live with a growing economy. Median sale prices in Oklahoma increased by only 2.1% year-over-year in 2023, making it a still-affordable place to live. The median home sale price in Oklahoma City is $199,500 and $196,333 in Art Deco-adorned Tulsa.
Iowa
Median home sale price: $206,833
Population: 3,207,004
Median household income: $70,571
Median days on market: 54
Iowa, sometimes referred to as the Hawkeye State, is known for being the first state in the nation to cast its votes for presidential candidates. Iowa is the county’s top producer of corn and pork, and more than 85% of the state is made up of farmland.
Iowa ranks seventh overall in U.S. News’ list of the best states. It earned third place for opportunity, eighth for fiscal stability, and eleventh for infrastructure. Iowa has the fifth lowest cost of living, and housing is particularly affordable compared to other states.
Des Moines is the state capital and its most populous city but maintains a small-town feel. There’s very little traffic and plenty of family-friendly activities. The median home sale price in Des Moines is $193,833. If you’re looking for a lively college town that’s big on breweries, museums, and sports, check out Iowa City where the median home price is $276,333. Cedar Rapids has a great local restaurant scene and miles of recreational trails. Its median home price is considerably lower at $193,417.
Louisiana
Median home sale price: $210,667
Population: 4,573,749
Median household income: $57,852
Median days on market: 72
There are endless reasons to love Louisiana, whether it be its Cajun-Creole cuisine, its 400 different festivals, or its storied musical legacy (The Pelican State is the birthplace of jazz, zydeco, and more).
Louisiana came in last place in U.S. News’ rankings of the best states, failing in categories like crime and corrections (#50), economy (#50), infrastructure (#49), and natural environment (#49).
The state is home to several world-class universities such as Tulane University, Louisiana State University – Baton Rouge, and Loyola University New Orleans.
Its most populous city is New Orleans, which has a median home sale price of $291,000. The capital city of Baton Rouge is big on college football and has a great parks system; the typical home sells for $221,817. Shreveport, which offers proximity to Dallas and Arkansas, provides the most bang for your buck with a median home sale price of $166,750.
Arkansas
Median home sale price: $220,000
Population: 3,067,732
Median household income: $56,335
Median days on market: 59
Arkansas is a southern state that borders the Mississippi River. It touts many nicknames including The Bear State and The Toothpick State. Walmart is the state’s largest company and recently opened a new 350-acre campus in Bentonville.
The state claimed the #3 spot in the country for housing affordability, making it a great place for those looking to get a foot on the property ladder. It performed poorly in crime and corrections (#49), healthcare (#47), and education (#43).
The capital, Little Rock, is home to the presidential library of Bill Clinton and Pinnacle Mountain State Park – its median home sale price is $205,854. Fort Smith sits on the Arkansas River and is an up-and-coming city. There, the typical home sells for $182,983. Fayetteville has a growing population, which has caused home prices to rise in recent years. Its median home sale price is higher than many other parts of the state at $355,004.
Mississippi
Median home sale price: $221,667
Population: 2,939,690
Median household income: $52,985
Median days on market: 64
Mississippi is a state that’s rich in history and often regarded as the birthplace of the blues. The Magnolia State is heavily forested (in fact, there are six national forests to enjoy) and offers peace and quiet thanks to its low population density.
Economically, Mississippi ranks poorly at #48 out of all the U.S. states. It comes in at #49 for healthcare quality and #41 for education. Its biggest industries are agriculture and forestry, owing to its abundance of farm and forestlands.
The two largest cities in Mississippi are Jackson, where the median home sale price is $96,333, and Gulfport, which touts a median home sale price of $197,650. Homes in Jackson, for example, typically range from $20,000 for a fixer-upper to over $3 million for an extravagant mansion.
Indiana
Median home sale price: $225,967
Population: 6,862,199
Median household income: $67,173
Median days on market: 46
Located in the heart of the midwest, Indiana is known as the Hoosier State. It has seen the most manufacturing job growth nationwide and boasts the second-largest automotive industry.
Indianapolis and Fort Wayne are the most populous cities in Indiana. Indianapolis is well known for its motor speedway and its races that draw in spectators from all over the world, especially the Indy 500. It has a well-known zoo, museums, and a state park, among other attractions. Meantime, Fort Wayne enjoys an extensive network of parks and boulevards that connect its three rivers
In regards to real estate, home sales have cooled off compared to last year, posting a 10.2% year-over-year decline in November 2023. The median home sale price in Indianapolis is $209,983, while Fort Wayne is slightly higher at $220,000.
Alabama
Median home sale price: $233,250
Population: 5,108,468
Median household income: $59,609
Median days on market: 58
Alabama is a nature-lovers paradise, offering white-sand beaches along the Gulf of Mexico, rock climbing in the foothills of the Appalachians, and boating and swimming on Lake Martin. One of its biggest industries is aviation and aerospace; NASA’s Marshall Space Flight Center is located in Huntsville, as are several Boeing facilities.
Alabama ranks #44 overall in U.S. News’ list of the best states, earning middle-of-the-pack scores for its economy (#33), infrastructure (#36), and opportunity (#32).
Huntsville recently ousted Birmingham as the state’s most populous city and is a hub for the aerospace industry. Its median home sale price is $270,125 and has been increasing steadily for several years. Birmingham is a great city for housing affordability with a median home sale price of only $109,083. Meanwhile, the capital city of Montgomery has a thriving riverfront and a typical home sale price of $140,067.
Kentucky
Median home sale price: $233,333
Population: 4,526,154
Median household income: $60,183
Median days on market: 51
Kentucky is nicknamed the Bluegrass State but others call it the Horse Capital of the World because it’s home to famous racetracks and more than 450 horse farms. It plays host to the most-watched horse race of the year, The Kentucky Derby, which is held annually on the first Sunday in May at Churchill Downs in Louisville. Besides horses, the state is also known for producing outstanding bourbon.
Kentucky is considered very affordable, with a cost of living index of 89.1 (100 being the U.S. average). It’s placed in the middle of the pack when it comes to rankings like infrastructure (#23) and access to healthcare (#37).
Frankfort is the capital of Kentucky and its largest cities are Louisville and Lexington. The median home sale price in Louisville, the state’s most populous city, is $234,167. In Lexington, the typical house sells for $302,000. Kentucky home sales have been down since mid-2022, but median home sale prices have risen steadily.
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