Where are the Cheapest States to Buy a Home in 2024?

Roughly one in three of the Millennial generation see rising home prices as a barrier to purchasing a new property. That is probably why the number of total first-time homebuyers fell to a small 26% in 2022. As the average house purchase price now easily tops $410,000 in the United States, finding an alternative solution is going to be crucial for buyers, sellers, and brokers.

The goal of many new home seekers is to find a property that is under $200,000 in value. Given that the average U.S. salary is a little under $60,000, that would give purchasing power to those earning a good living with $10,000 in available funds for a down payment.

This unique financial situation is not possible in states like Hawaii, California, or Massachusetts, where the cost of living and property ownership is sky-high. Instead, some families are migrating south to warmer climates and better homeownership opportunities.

To give you a good idea, here is a quick list of the cheapest states to purchase a home right now in 2024.

Six Cheapest States to Purchase a Home in 2024

#1 – West Virginia

All over West Virgina are the small towns famous in movies and plays for their quaint settings. You can easily go from a national park to a corner store bakery in a day and enjoy all four seasons depending on how close you are to the mountains.

Median Home Value: $143,200

#2 – Alabama

Dig into some of the best food you’ll ever experience inside Alabama’s many parks and historic sites. This is an excellent place to set a residence as the property taxes are the second lowest in the country and the schools are quickly on the rise for educational value.

Median Home Value: $172,800

#3 – Mississippi

If you prefer a state full of southern hospitality and a rich cultural heritage of blues music, Mississippi may be your next investment. This state has a cost of living 14% lower than the national average and 30% lower in housing. It is investment-rich because of the availability of properties.

Median Home Value: $145,600

#4 – Arkansas

Arkansas is a beautiful mixture of cultures. In areas like Little Rock or Fayetteville, you can find all the metropolitan features you’d love of a major city, but there is also plenty of open space and rural communities around the Ozark Mountains.

Median Home Value: $162,300

#5 – Louisiana

If you’re anywhere near the Big Easy (New Orleans), you’ll pay a little more in home prices, but once you’re outside the heart of the American French Caribbean, you’ll find plenty of properties surrounded by music, food, and endless stories.

Median Home Value: $192,800

#6 – Indiana

For those that prefer a midwestern state to raise a family, stick to Indiana. This is a lush green area with some of the best sporting events, universities, and museums in the country. You can easily live in a rural community and be only an hour or so from major music events, sports venues, and cultural highlights.

Median Home Value: $182,400

Rounding out the final four of our list include:

• Delaware at $300,500
• Oklahoma at $168,500
• Kentucky at $173,300
• Ohio at $180,200

Where Should You Buy?

Deciding which of these states will be your best new stomping grounds comes down to the total quality of life. You want to consider the cost of the property against future home values, real estate taxes, cost of living, and the average cost of insurance. You don’t want to move to a state where you are required to have insurance coverage higher than your mortgage.

After that, it is all a matter of personal preference. Perhaps you want to be in the South, where the food is amazing, and the music goes on all night long. Or maybe you prefer a quiet rural homestead in Ohio or Indiana where the cost of living is low, but the community togetherness is strong.

Finding that balance will make a big difference in where you move. However, there is also consideration for the investment side of the equation. Securing many properties in Kentucky for an Airbnb business or secondary home opportunity is an excellent way to offset your daily lifestyle in a more expensive state.

Whatever your reason, there are plenty of investment options open to those seeking properties in certain states. An excellent place to start is the World Population Review’s Cost of Living Index.

Final Thoughts

With so many younger families seeking their first homes and the rapid adoption of remote and hybrid workplaces, we could see a massive redistribution of housing in the United States. Getting into the ground floor of the cheaper states now could be your way to leverage future capital for development as you age.