The Cheapest States To Buy A House In The US

Americans don't move as much as they used to. In fact, the Census Bureau has found (via The New York Times) that the U.S. is less mobile than ever. The decline has been slow over a 50-year period, but it's been dramatic. Rents are up, housing prices are up (and continue to rise), and for those at the bottom of the wage scale, pay and cost of living tend to be around the same wherever they are. It all adds up to a hostile environment to even a temporary move.

That's not to say there isn't any appetite among Americans to pack up stakes. Further, it's not to say there isn't any variation in prices across the country. The Sun Belt is more affordable than the coasts, for example; and certain states have consistently come in as the most affordable in recent years — at least according to Redfin data. With that said, here's a look back at the states (in alphabetical order) with the cheapest housing for sale in the summer of 2024.

Iowa's had some good press in the last few years. In 2024, for example, U.S. News and World Report's "Best States Overall" ranking put the Hawkeye State at No. 6. On specific criteria, Iowa placed third in opportunity and 10th in infrastructure; and some outlets have rated the state even higher. It has a low crime rate, and a healthy manufacturing industry.

For homeowners, Iowa is also a relative respite from high prices. According to the Missouri Economic Research and Information Center Cost of Living Data Series, Iowa's cost of living stands at 10.9% lower than the national average, and in 2023, CNBC named it the cheapest state in the U.S. to live in. For housing prices, specifically, Iowa also topped Redfin's list for affordability, with a median house sale price of $240,500.

Of course, there's also plenty of variation in housing even in the cheapest state in America. Rural areas and small towns will be more affordable, cities less so. But even in its urban areas, Iowa can offer bargains. CNBC listed the average housing price in Burlington in Des Moines County, to be $270,071.

Louisiana is one of those states that can sometimes be flattened out into a single city. New Orleans dominates the state's image with its unique history, architecture, and culture. And if one let the Big Easy be their only guide to housing in Louisiana, they wouldn't be in a hurry there to get a good deal on a home. The cost of living in New Orleans is 11% higher than the national average according to Payscale.

But as beautiful and influential as New Orleans is, it's not the whole of the Pelican State. Redfin listed the median housing price in Louisiana at $243,300 in 2023 (per Bankrate), and $263,500 the year after. It also reported that most of the state's other cities came in under the national average for house sale prices. The median price in Lake Charles, for example, was $184,000, while Baton Rouge was at $227,500 and Lafayette at $239,000.

While Louisiana has New Orleans jazz and its bayous, its neighbor to the east, Mississippi, has its own musical heritage in the blues, and a namesake river. Tourist attractions, meanwhile, include the Vicksburg National Military Park and the birthplace of Elvis Presley. Bankrate named Mississippi the sixth-best state to retire in for 2024. (By the way, here's how much Americans think they need to retire comfortably.) And by multiple assessments, Mississippi is among the cheapest states in the Union to buy a house.

Redfin lists the median price of a house in Mississippi at $261,800, while Bankrate noted it was $232,800 to start 2024. As for its cost of living, it ranks fifth in the U.S. (per MERIC), 12.3% lower than the national average. However, citing USDA research, note that Mississippi also has one of the highest poverty rates in the U.S. And not everyone agrees that it's cheap. CBS affiliate WJTV 12 reported in March 2024 on a USA Today cost-of-living study that found that, when median income was subtracted from the cost of living, then Mississippi was actually the ninth-most expensive state to live in.

Forbes Advisor reported in May 2024 that Columbus, Ohio, was the fastest-growing region in the Midwest in the first two decades of the 21st century, driven largely by financial, technical, as well as pharmaceutical industries (per Census Bureau data). The Buckeye state also boasts the Rock & Roll Hall of Fame, Cleveland, Hocking Hills, a border along one of the Great Lakes, and a large Amish population.

For those looking for an affordable home, Ohio offers more incentives. The C2ER Cost of Living Index (via JobsOhio) found that the cost of living was not only lower than the national average in Ohio, but the Midwest region's average as well. For housing, Bankrate found the median cost of a Buckeye home was $228,000 in November 2023, while Redfin reported it at $259,100 in 2024 (summer). However, while listed prices may be low, Forbes Advisor cautioned that over a third of homes in the state sell above their advertised figure, and that the market's competition is robust.

There must be at least a few residents in the Sooner State who are sick and tired of Rodgers and Hammerstein's musical. No matter how good the show is, there's always someone who won't stop bringing up that one film, show, or show tune attached to a state. But modern-day Oklahoma has much more to offer than inspiration for a theatrical classic, including the Wichita Mountains Wildlife Refuge, the Chickasaw Cultural Center, the engineering base of American Airlines and, for those who don't mind a little regular meteorological danger, a spot in the line known as Tornado Alley.

Local paper The Oklahoman reported in July 2024 that the state is also counted among the most affordable in the country. Per a recent GOBankingRates study, Oklahoma's cost of living is almost 15% lower than the national average, and its housing costs are 31.5% lower. Per Redfin, its median housing price is $251,400; further, the real estate brokerage mentioned that the city of Tulsa was offering a $10,000 grant to people who move to the city and stay for at least a year. The city of Lawton in southwestern Oklahoma had an even lower median housing price: $150,000.