Buying a property is the biggest investment decision for many Americans. During the year 2021, housing prices have increased dramatically by around 16.9% compared to the year before that in the United States. As of 2022, the average price of a house in the US is around $360,097, but the United States has a large variation in housing affordability between different regions. For example, an average house price in West Virginia costs $126,948 while an average house price in Hawaii comes out to $730,511. This means that a house in West Virginia is almost 7 times more affordable than a house in Hawaii. Some people may choose to live in regions that are less affordable for many reasons, but it is important to use a home affordability calculator before choosing to purchase one.
This article provides information about the top 10 most affordable states in terms of house prices. The list provided is sorted from the most affordable to the least affordable state of the top 10 most affordable states. It is important to note that home affordability is not the only factor to consider before purchasing a property. A buyer should also consider other costs that apply to their individual lifestyle such as child care costs, dining out, etc.
1. West Virginia
West Virginia has the most affordable housing prices in the USA. The average house price in West Virginia is around $126,948. To compare, an average house in West Virginia costs 7 times less than Hawaii, which is the least affordable state for buying a property. As of 2022, West Virginia has seen an 11.9% increase in housing prices over the past year. This increase is smaller compared to the national average of 16.9%, which means that housing prices in West Virginia increase at a slower rate than the national average.
2. Mississippi
Another very affordable state to buy a house in is Mississippi. The average price for a house in Mississippi is $157,885. This is slightly higher than the average of West Virginia, but it is still very affordable compared to other states. During the year 2021, housing prices increased by 14.1%, which is higher than the increase in housing prices in West Virginia but still lower than the national average. This means that houses in Mississippi appreciated more than houses in West Virginia over the same period.
3. Arkansas
Arkansas is holding 3rd place of the most affordable states for buying a house in the US. The average house price in Arkansas is $166,566, which is just under $10,000 more than the average price in Mississippi. During the past year, Arkansas has seen an average increase in housing prices by 17.3%, which is higher than the national average of 16.9%. This means that Arkansas has become less affordable compared to other states during the year 2021. Even though housing prices in Arkansas increased more than the national average, the prices are still quite low compared to other states.
4. Oklahoma
Oklahoma is very similar to Arkansas in terms of housing prices. Average housing prices in Oklahoma are around $167,450 as of 2022. The average housing price in Oklahoma is around $1,000 more expensive than the average housing price in Arkansas. There is a slight difference in prices, but both Oklahoma and Arkansas can be considered to have the same housing affordability because the price difference is very small. Oklahoma’s average home prices increased by 16.1% during 2021, which is just 0.8% lower than the national average increase in housing prices.
5. Iowa
Iowa has an average house price of $180,839 at the beginning of 2022. It is slightly more expensive than Oklahoma and Arkansas, but it is still around half the price of an average house in the United States. Because of that, Iowa is considered a very affordable state to buy a house even though there are cheaper houses available in other regions. The increase in housing prices in Iowa during 2021 was equal to 12.5%, which is much lower than the national average increase of 16.9%.
6. Kentucky
The 6th place in the most affordable state for housing can be given to Kentucky with an average house price of $185,331. During the year 2021, Kentucky has seen an average increase in housing prices of 15%, which is 1.9% lower than the national average. Since Kentucky had a lower increase in housing prices than the national average, Kentucky is more affordable than a year ago compared to other states.
7. Alabama
Alabama is another one of the most affordable states in the US. Currently, an average house in Alabama costs around $189,976, which is about $5,000 more expensive than the average house in Kentucky. Alabama has seen an increase in the average house price of 17.5%, which is higher than the national average. This means that homeowners in Alabama have seen a higher increase in their property value than an average homeowner in the US.
8. Kansas
An average house price in Kansas is $194,951, which is higher by around $5,000 than the previous state on our list once again. Housing prices in Kansas have increased by 14.4% over the year 2021. An increase in housing prices in Kansas is smaller than the national average by more than 2%, which means that Kansas has become more affordable on average compared to other states.
9. Ohio
An average price of a house in Ohio is very similar to an average housing price in Kansas. An average price of a house in Ohio is around $196,213, which is a 0.6% difference compared to the average price of a house in Kansas. Ohio has seen an increase in housing prices of around 15.7% on average over the year 2021. This increase is smaller than the national average of 16.9%, which means that housing prices in Ohio have not risen as much as in the United States on average.
10. Indiana
The state that closes the list of top 10 most affordable states for buying a house in Indiana. Currently, the average price of a house in Indiana is around $206,422. It is more expensive than all the other states mentioned above, but it is still much lower than the average price of a house in the United States is equal to $360,097. Indiana has experienced an increase in the average house price of 17.8% over the past year. This means that properties in Indiana, just as in Alabama and Arkansas, have increased in price more than the national average.
These 10 states have the lowest average housing prices, which makes them quite affordable to buy a property. There may be many reasons why an individual would purchase a property. If it is for personal use, then it might be wise to consider other costs associated with living in the region the house is located. On the other hand, if a property is used as a rental, then it is important to consider rental prices and associated expenses in the area. Regardless of the reasons to purchase a property, it is important to ensure that you can afford it.
