7 of the Cheapest States To Buy a House Right Now

published Sep 12, 2022
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Indiana

While many real estate markets still remain largely unaffordable — looking at you, New York and California — there are a few areas that have an average home price that can make buying a home an attainable goal. If you’re on the hunt for a home and are open to relocating, you’ll want to check out this list of the cheapest states where you can buy a home (and learn a little bit about them while you’re at it). 

Mississippi 

With an average home price of $119,000, according to homebuyer.com, the Magnolia State is one of the most affordable places to purchase a home right now. Unlike in some other areas, there are thousands of options to choose from. Zillow estimates there are more than 12,000 properties currently listed for sale across the state. 

That’s good news for people looking to relocate to Mississippi — the birthplace of both the blues and Elvis Presley. The Bureau of Labor Statistics says that the unemployment rate is only 3.6 percent (slightly lower than the national average of 3.7 percent) which means residents can expect job security as well as affordability. 

Virginia 

Next up in affordability is Virginia. With plenty of awesome beaches and access to important hubs like Baltimore, Maryland, and Washington D.C., Virginia is a great place for a hopeful homeowner on a budget to find a new place. The average home price is just $119,600 across the state. 

Buyers can find more urban properties in areas like Richmond, the state’s capital, or embrace some of the agricultural beauty of the land by house hunting in areas like Big Stone Gap, which features scenic views of the Appalachian Mountain chain. 

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A waterfall at Hot Springs National Park in Arkansas

Arkansas 

If you’re an outdoorsy person who wants to find a new home that represents your love of a good hike, consider purchasing a home in Arkansas. With an average home price of just $127,800, there are plenty of affordable properties across the state. And what a place it is — not only can the Ozarks be found in the northwestern part of the state, but it also offers Hot Springs National Park. Unemployment rates in the state are also lower than the US average at just 3.3 percent as of July 2022.

Oklahoma 

The Sooner State is a great place to lay down roots for many reasons — including the fact that the cost of living in Oklahoma is so low that it has been ranked the fifth most affordable state in country by the World Population Review. This makes the state’s average home price of $136,800, a win-win for homebuyers looking to relocate. 

Oklahoma residents also get to have some confidence in their ability to pay for their homes, since the state has an average unemployment rate of just 3 percent. 

Kentucky 

Home to Colonel Sanders and Jim Beam, the Bluegrass State comes in at number five on the list of most inexpensive homes. The average home price is just $141,000, which is impressive compared to the US average of $428,700. Unfortunately the state’s unemployment rates do outrank the country’s average and come in at 3.7 percent. 

Indiana 

For those who have always dreamed of becoming a Hoosier, we have good news about home prices in Indiana. The average home sells for $141,700 in the state, making it a good place to settle down. The state also has very low unemployment rates at just 2.6 percent, which makes it the third-lowest rate in the country. That’s great news for people looking for job security as well as a place to call their own. 

New Mexico 

The desert landscape of New Mexico offers incredible views, warm weather, and affordable housing. Homes in the 47th state will only set shoppers back an average of $171,400. 

Homeowners in New Mexico won’t have to worry as much about nosey neighbors either. While the Land of Enchantment is the fifth largest state in the country, it only has around 2.1 million residents. If you’re looking for a space that will let you stretch your legs and your home budget, this is the place for you.