Copyright Parade
Finding affordable houses in a sought-after area can often feel like searching for a needle in a haystack. Similar to all worthwhile investments, real estate has never exactly come cheap, but it typically provides a strong return on investment that makes it worthwhile nonetheless. It would still be nice to look into a crystal ball and find out what the cheapest states to buy a house are. As interest rates and home values have progressively skyrocketed in recent years, the American dream of purchasing a place to call your own has become a lot more out of reach for many aspiring homeowners. Interest rates are slowly but surely dipping, meaning many buyers are seeing some relief in sight, but many markets are still more expensive than ever in certain areas of the country. Many homebuyers who don’t have the luxury of waiting out the market would prefer to relocate to a more affordable state rather than be saddled with a crippling mortgage in their current location. If you’re one of the many Americans who are hoping to avoid sticker shock, there are still multiple markets that offer budget-friendly real estate. Not sure where to start? Parade asked several real estate agents to share details on the 17 states where homes are the most affordable in 2025. We also reference plenty of data from Redfin to determine the median home cost in each of the states below. With these insights, you’ll get a general sense of the areas of the country that are luring in homebuyers seeking reasonable home prices. Related: The Surprising U.S. City Where Renters Stick Around the Longest What’s the Average Price of a House in 2025? House prices can vary vastly, depending on several factors, including the area of the country, the house size and age and the neighborhood. For these reasons, real estate isn’t an exact science, but Redfin data notes that the average price of a house (from September 2025) is $435,285. The official website for the United States Census also released data on Sept. 24, 2025, that defined the median sale prices of new homes in August 2025 as $413,500, which is a 4.7% increase from the July 2025 price of $395,100. Meanwhile, the average sales price of new houses in August 2025 was $534,100, which was an 11.7% increase from the July 2025 price of $478,200. Which State Is the Cheapest To Buy a House in the U.S.? Before taking a look at our list of expert-backed states that are the cheapest to buy in the United States, what is the cheapest state to buy a house, overall? A recent report from Rocket Mortgage lists West Virginia as the cheapest state to buy a house in the U.S. Per Redfin, the median sale price is $240,000. Related: This South Carolina Gem Is Becoming the South’s Next Big Food City—And It’s Not Charleston 17 States With the Most Affordable Homes Right Now, According to Realtors 1. West Virginia Median Home Cost: $239,800 An Agent’s Perspective: With home prices “well below the national median,” Washington-based realtor Kendra Halverson says West Virginia is worth considering as you search for a place to call home. “The state has one of the lowest overall costs of living and programs like relocation incentives for remote workers further boost affordability,” she shares. “Economic challenges in parts of the state have kept prices suppressed relative to coastal regions.” Selling Points: Travis Broadwater, an agent at RE/MAX Broadwater in Wheeling, WV, says affordability is just one of the state’s major selling points. “West Virginians enjoy a slower pace, friendly neighborhoods and a cost of living that allows families to build real wealth through homeownership,” he explains. “We’re seeing more buyers relocating from larger metro areas who realize they can keep their careers remote while gaining square footage, peace and proximity to outdoor adventure, all while dramatically lowering their expenses.” 2. Iowa Median Home Cost: $247,100 An Agent’s Perspective: Home prices may be relatively low in Iowa, but Halverson—who works at Plaster and Pine Homes—says household incomes are “solid,” meaning you get “Midwestern prices without sacrificing steady paychecks.” “Lower property tax burdens and smaller metro price pressure than coastal markets keep affordability intact,” she shares. Selling Points: Looking for more reasons to call Iowa home? Consider the growing tech and insurance sectors in Des Moines, family-friendly suburbs and college towns with “stable rental demand,” she points out. 3. Oklahoma Median Home Cost: $252,900 An Agent’s Perspective: Oklahoma offers a “generally low cost of living statewide,” according to Halverson, plus an abundance of single-family homes. “Several cities (i.e., Tulsa, Oklahoma City) have incentive programs to attract remote workers and small businesses, which supports demand but keeps prices reasonable for now,” she explains. One thing to note? She shares that some homeowners face higher-than-average insurance costs in certain areas of the state. Selling Points: She points out “revitalization projects” in Tulsa and Oklahoma City, affordable suburban lots and “relatively cheap land for building or expanding.” 4. Louisiana Median Home Cost: $253,000 An Agent’s Perspective: Halverson says homes in Louisiana are “significantly below national average prices.” “This makes homeownership more within reach for solo buyers or first-timers,” she shares. Selling Points: She notes that Louisiana has “lots of lifestyle appeal” due to its rich culture, food, music and festivals. The real estate agent says it’s a great state for families and investors alike. 5. Ohio Median Home Cost: $260,600 An Agent’s Perspective: “A broad supply of entry-level and older housing stock in many Ohio metros keeps prices down,” Halverson explains. “Wages in many regions are also reasonable compared with housing costs.” The real estate agent notes that some cities in Ohio are prioritizing “downtown revitalization,” which has helped “stabilize neighborhoods without huge price spikes yet.” Selling Points: Still not convinced? She suggests checking out redevelopment in Cleveland and Cincinnati, suburbs with strong school systems and “undervalued neighborhoods that attract investors and first-time buyers.” Related: We Asked Interior Designers Which of 2025’s Viral Home Design Trends Actually Have Staying Power—And Which Don’t 6. Mississippi Median Home Cost: $263,400 An Agent’s Perspective: “Statewide median prices are low, and many towns/counties have very low cost of living,” Halverson says while calling out the benefits of living in Mississippi. The agent does caution that “income levels and economic indicators vary,” meaning buyers should pay attention to areas with higher insurance costs or natural disaster risk, since this “can raise ownership costs.” Selling Points: She says Mississippi has a slew of selling points, including Gulf Coast communities, historic towns and low entry prices for investors or owner-occupants. 7. Arkansas Median Home Cost: $266,900 An Agent’s Perspective: Halverson says home prices in Arkansas are affordable for several reasons, including a cost of living that’s reasonable and property taxes that are on the lower end of the spectrum. Overall, it’s a great area for anyone who’s looking to get the best bang for their buck. Selling Points: The realtor lists Arkansas’ “natural beauty” as a major selling point since the state is filled with lakes, mountains and parks that are ideal for anyone who lives an active lifestyle or enjoys nature. 8. Kentucky Median Home Cost: $270,500 An Agent’s Perspective: Jeff Jarboe, the principal broker and owner of RE/MAX Empire in Mount Washington, KY, says the state has “quietly emerged as a hidden gem in terms of affordability and overall quality of life nationwide.” As real estate costs have risen nationwide, prices in Kentucky have remained stable “due to reasonable land expenses, a well-managed development pace and a strong community spirit that fosters a sense of belonging.” Selling Points: “Kentucky presents a unique combination of exceptional value, hospitality and diverse lifestyle choices for all types of homebuyers.” Jarboe shares. “Whether you are a first-time buyer or relocating from another state, the Bluegrass State offers a level of affordability that is increasingly rare in today’s real estate market.” The real estate agent also cites the “dynamic metropolitan areas” of Louisville and Lexington. “Louisville boasts a rich blend of history, top-notch dining options, the famous bourbon trail and a robust health care industry,” he explains. “On the other hand, Lexington (a much smaller city than Louisville) offers a picturesque mix of horse culture, technology, education and access to some of the state’s most stunning landscapes.” 9. Indiana Median Home Cost: $276,200 An Agent’s Perspective: Mike Jones is the managing broker/owner of RE/MAX At The Crossing in Indianapolis, IN. In recent years, the realtor has seen the Indiana real estate market experience “incredible growth” while maintaining its status as “one of the most affordable and opportunity-rich markets in the country.” Selling Points: He cites the state’s “low cost of living” as one of its major selling points and says the median home price is up 4% year over year, meaning there’s a “healthy and sustainable pace of growth.” “With more and more businesses choosing to call Indiana home, accelerated job creation and a thriving economy that’s only getting stronger by the day, the window for these opportunities is narrowing—but still very much open for the time being,” he says. 10. Missouri Median Home Cost: $280,000 An Agent’s Perspective: Annamarie Hopkins, managing broker and co-owner of Smarter Move Real Estate Group, says reasonable property taxes are a major factor for many Missouri homebuyers. “There is no legal liability to disclose what you bought your home for and what it appraised for because we are one of the few non-disclosure states in the U.S.,” she shares. Charlie Gerken, a broker in Branson, MO, says the state’s real estate market is unique since it doesn’t have the “highs and lows” that the East and West Coast markets experience. “Our prices generally tend to staircase up much slower and not as aggressively, and we also don’t have those aggressive falls,” he states. “Our employment stays steady throughout the year, which obviously helps that. Our climates are pretty mild, so you don’t have the strong summers, you don’t have the harsh winters. So it doesn’t really get in the way of the construction industry or people moving around.” Selling Points: Hopkins cites Missouri as a “great place to raise a family” and says many homebuyers are attracted to the “small town vibes.” “We say hi to everybody. You need help, someone will stop and help you,” she shares. Also, since Missouri touches eight other states, Gerken says many homebuyers enjoy the ability to travel to other areas with ease. Audrey Boyle, a realtor at Keller Williams, says many people are attracted to Missouri for its “rich history.” “We have a lot of old mills around, lots of historic main streets throughout, lots of historic squares,” she says. She describes the state as a “best kept beauty secret” since it has “lots of natural beauty” ranging from mountains to flatlands and everything in between. 11. Michigan Median Home Cost: $284,500 An Agent’s Perspective: “Large swaths of the state (outside premium lakeshore spots or certain suburbs) still have prices under the national median,” Halverson says. “Some metros (Detroit, historically) saw big rebounds from very low bases, but many areas remain accessible for first-time buyers.” Selling Points: The agent cites reasonably priced lakefront and inland communities as one major selling point. Additionally, buyers will appreciate Detroit and its suburban revitalization projects, manufacturing and logistics jobs and outdoor access to the Great Lakes. Related: 40 Best Family Vacations on a Budget—and Yep, They Include Europe and the Caribbean 12. North Dakota Median Home Cost: $288,950 An Agent’s Perspective: Erik Peterson, a broker at Proven Realty in North Dakota, says the state’s legacy fund helps make real estate more affordable. “We’re one of the few states that have our own bank,” he explains. “We were smart way back when, and a certain percentage of all oil money goes into a rainy day account, so the state government is not reliant on taxing its residents.” Low tax rates and high income also contribute to affordability. “We’re a small geographic state, so we don’t have to pay for all the roads and bridges and all of these other things that a large state has to,” he shares. Selling Points: When it comes to North Dakota real estate, Peterson says a lot of people “come for the short term and then never leave.” The realtor shares that many people fall for the Midwest charm and the state’s “natural beauty.” 13. Kansas Median Home Cost: $292,600 An Agent’s Perspective: “In Kansas, you can stretch your dollar further—home prices stay down while opportunity keeps pace,” Halverson says. With a cost of living that’s “significantly lower than the national average,” she explains that Kansas is one of several states offering affordability to potential homebuyers who want to make the most of their money. She also says “stable, slowly growing markets,” such as the Kansas City region, give buyers options with more inventory available. Selling Points: She notes that some rural counties offer incentives for remote workers, which can encourage demand. Also, she says that the entry price for real estate is low enough that people can afford to upgrade or invest. 14. Alabama Median Home Cost: $293,000 An Agent’s Perspective: John Wesley Brooks, a realtor in Huntsville, AL, says low gas prices, cheaper property taxes and a booming job market all contribute to lower home costs in the state. Alabama Association of Realtors spokesperson Jeremy Walker also notes that the state has “benefited from a steady increase in net migration, economic growth and a higher quality of life.” Since the median home price is “well below the national average,” many people are attracted to the low overall cost of living. “Alabama continues to attract families, professionals and retirees seeking affordability without sacrificing comfort or community,” he shares. Selling Points: When deciding to move to Alabama, Wesley Brooks says people consider a number of factors. “People move here for many reasons. They move here for political reasons. They move here for religious reasons,” he says, adding that “southern hospitality” is also a major selling point. Jonathan Fuller, a realtor at The Gray Group, also notes that many people are attracted to the hospitality of Alabama’s residents. “If somebody wants to spread themselves out a little bit, you can buy a house with some land,” he shares. “You don’t have to be side-by-side with your neighbor. But if you are side-by-side with your neighbor, your neighbor [is] usually pretty welcoming. It’s more of a sense of community.” 15. Illinois Median Home Cost: $303,300 An Agent’s Perspective: Mike Opyd, a broker at RE/MAX Premier in Chicago, IL, explains that the majority of real estate being bought and sold in the state is located in the northern part of Illinois. “The northern part has a significant urban footprint due to the extensive expansion and construction that has occurred over the last 20+ years,” he says. Since higher-priced properties in Illinois are typically “concentrated in smaller areas,” the small number of luxury properties does “not significantly impact the overall affordability of Illinois as a whole.” “This means the majority of properties in Illinois fall into an affordable category,” he shares. Selling Points: “Across the upper part of the state, developers have created neighborhoods and shopping centers, and built towns into places for people to live and grow,” Opyd explains. “All of this development has led to a large number of properties being built. Because of this, there are a lot more opportunities for people to buy homes than in more condensed areas, so prices tend to be more stable and affordable.” 16. Nebraska Median Home Cost: $304,800 An Agent’s Perspective: Jennifer Gatzemeyer of Nebraska Realty attributes Nebraska’s affordability to a number of factors. “People who live here really want to live here. It’s affordable because it’s not the biggest state for entertainment or bringing in big crowds for anything. We’re just kind of born here, raised here, stay here,” she shares. “And I think that keeps the cost of living down here a little bit.” With a low unemployment rate and lots of industries, job opportunities are also abundant. Selling Points: She says potential homebuyers are drawn in by Nebraska’s “down-to-earth” vibe. Many of them also have deep roots in the area. “It’s one of those places where you’ve just got to see it to appreciate it,” she explains. One thing to consider before moving to Nebraska? There are high property taxes. Though Gatzemeyer says she hasn’t seen that deter many folks from putting down roots in the state. 17. Wisconsin Median Home Cost: $338,000 An Agent’s Perspective: Scott Wessel, a real estate broker and owner of Wisconsin Real Estate Co., LLC, notes that Wisconsin housing costs “have not caught up with most of the country.” At the same time, the general cost of living is “reasonable,” making it easier for residents to afford to buy a home. Selling Points: He shares that the Wisconsin climate appeals to many people. “We do get cold in the winter, but we don’t have forest fires where we smell smoke for a month every summer. We don’t have hurricanes. We don’t have earthquakes,” he states. A range of industries and a mix of political perspectives also attract some residents. Up Next: Sources:
