Which Are the Cheapest States to Buy a House?
Buying a home doesn’t have to mean breaking the bank, as some states offer surprisingly affordable housing options and make homeownership more accessible than you might think.
Whether you plan a big move or are just curious about where your dollar stretches furthest, explore the top 10 cheapest states to buy a house and see why these markets are so budget-friendly.
When you’re ready to take the next step, Rate’s Same Day Mortgage could help make your home-buying journey fast and stress-free*.
Which is the cheapest state to buy a house?
Certain states stand out for their budget-friendly housing options. From low property prices to affordable living costs, these areas provide excellent opportunities for first-time buyers and anyone looking to save.
10. Ohio
Ohio remains one of the most affordable places to buy a home in the United States. The combination of reasonable housing prices, a low cost of living and diverse job opportunities makes it a top pick if you're a budget-conscious buyer.
For example, cities such as Cleveland and Toledo offer affordable homes alongside amenities like parks, museums and lively downtown areas. The state also has quality schools, a concern if you have or plan to have school-age children.
Ohio’s real estate market offers choices from single-family homes in suburban neighborhoods to homes in the downtown area. Whether you're looking for a suburban home or a property near a vibrant city, Ohio has plenty to offer.
9. Kentucky
Kentucky attracts buyers with rural charm, affordability and slower pace of life. Housing costs in the Bluegrass State are well below the national average, and property taxes rank among the lowest in the country. This makes owning a home here particularly attractive for retirees and families.
Beyond affordability, Kentucky’s scenic beauty – from rolling hills to horse farms – adds to its appeal. Areas such as Lexington and Louisville offer city conveniences and small-town charm, making the state a versatile option for homebuyers seeking value.
For outdoors-lovers, Kentucky’s state parks and trails provide easy access to recreational activities.
8. Oklahoma
Oklahoma is a budget-friendly haven for homebuyers looking for spacious properties and a low cost of living. The state’s housing market remains one of the most accessible in the country, and Oklahoma continues to grow in industries like energy, agriculture and manufacturing.
Urban centers such as Tulsa and Oklahoma City are especially popular, offering affordable homes with cultural attractions, thriving food scenes and job opportunities. For example, Tulsa’s typical home price is significantly lower than the national average, making it an attractive option for first-time homebuyers.
Known as the Sooner State, Oklahoma also appeals to those who love the outdoors with its stunning natural landscapes, from prairies to lakes. Oklahoma State University also brings energy to the state, especially in college towns known for their affordable housing options.
7. Delaware
Delaware’s low property taxes and lack of a state sales tax make it especially attractive for homebuyers on a budget.
Delaware’s location near major metro areas such Philadelphia and Washington, D.C., adds to its growing appeal and offers homebuyers affordability without sacrificing access to major cities. For homebuyers looking for added cultural heritage and coastal charm, cities such Dover and Rehoboth Beach can give you unique experiences.
Whether you’re looking for a single-family home or a property with extra square feet, Delaware provides a mix of affordability and lifestyle that’s hard to beat.
6. Indiana
Indiana offers a variety of options, from suburban homes in family-friendly neighborhoods to affordable apartments in lively cities.
Indianapolis, for example, is one of the most affordable metropolitan areas in the Midwest, with its cultural attractions, excellent healthcare facilities and job opportunities but without the hefty home prices. Indiana’s cost-of-living index consistently ranks among the lowest in the nation, making it a good choice for families and first-time homebuyers.
5. Louisiana
Known for its rich history, world-famous food and lively festivals, Louisiana boasts a unique combination of cultural vibrance and affordable housing.
Baton Rouge, as the state capital, has strong job opportunities and educational institutions such as Louisiana State University. Meanwhile, Shreveport gives you a cozy feel with small-town charm and city-life conveniences.
For homebuyers drawn to the energy of New Orleans, the city offers historic homes at reasonable prices compared to similar cities across the United States. Whether you’re looking for a single-family home or a property close to the famed nightlife, Louisiana has something to fit your budget.
4. Arkansas
Arkansas is where breathtaking natural beauty meets affordability. Known for its scenic views such as the Ozark Mountains and numerous state parks, this state draws outdoors-lovers who want to stretch their dollar.
Housing costs in Arkansas rank among the lowest in the country, with cities such as Little Rock offering a balance of urban amenities and affordable real estate. Hot Springs, famous for its historic thermal baths and thriving arts scene, provides buyers with unique housing options at budget-friendly prices.
For families or retirees looking for peace and quiet, Arkansas delivers rural towns and small communities where the average house price is well below the national median.
3. Mississippi
Mississippi consistently ranks as one of the most affordable states in the nation with some of the lowest home prices in the United States. Its welcoming communities and strong sense of Southern hospitality make it a great place to establish roots.
The Magnolia State is perfect for first-time homebuyers and families seeking budget-friendly options. Cities such as Jackson and Gulfport feature affordable homes with easy access to job opportunities and entertainment. For nature lovers, Mississippi’s proximity to national parks and beautiful coastlines adds to its charm.
Beyond its low housing prices, Mississippi also benefits from a low cost-of-living index, making everyday expenses like groceries and utilities easier to manage. With its rich cultural heritage and warm climate, the state remains a top choice for affordable homeownership.
2. Alabama
With its mild climate and low housing costs, Alabama attracts families, retirees and first-time homebuyers.
Huntsville, known for its booming aerospace and tech industries, is one of the state’s largest cities and a hub for affordable housing. Birmingham and Montgomery also offer budget-friendly options without sacrificing access to cultural events and healthcare facilities.
For those who appreciate natural beauty, Alabama offers rural towns and coastal communities such as Fairhope and Gulf Shores. These areas provide homeowners stunning surroundings and affordable housing, making Alabama an all-around winner for homebuyers.
1. West Virginia
At the top of the list, West Virginia is the most affordable state to buy a house. Its low property prices combined with scenic landscapes and a slower pace of life make it a hidden gem for budget-conscious buyers.
The Mountain State offers a range of housing options, from cozy mountain homes to suburban properties with large yards, at prices well below the national average.
Cities such as Charleston and Morgantown provide affordable living with access to jobs, schools and cultural attractions. For those who prefer outdoor activities, West Virginia’s forests, rivers and ski resorts offer endless recreational options.
Whether you’re looking for an affordable place to raise a family or retire in peace, West Virginia delivers affordability without compromising quality of life.
Why are houses so cheap in West Virginia?
West Virginia’s affordability stems from the reality that it's mostly rural and has a limited demand for housing.
The state’s economy, which once relied heavily on coal mining and manufacturing, has seen declines in these industries, reducing demand for new development. As a result, housing prices remain low compared to other states.
Also, the lower population density means there’s less competition for homes, driving down prices further.
While the state may lack the bustling job markets of larger cities, it compensates with a lower cost of living, making it an attractive option for those homebuyers looking for affordable homeownership and a quieter lifestyle.
Money-saving tips for buying a house
Buying a home is a big financial commitment, but smart strategies can save you money along the way. Here are a few tips to help you maximize your budget and minimize costs.
Compare mortgage lenders and rates
Typically, it would be best not to settle for the first mortgage offer you receive, so shopping for mortgage rates and terms from multiple lenders can make a world of difference.
Use Rate’s mortgage comparison tool or work with a mortgage broker to help make sure you’re getting the most favorable deal. Being proactive in this step puts you in a stronger position financially and helps you make an informed decision.
Look for government-assistance programs
First-time buyers and those with limited budgets can benefit from government-assistance programs that include grants, low-interest loans and tax credits to make buying a home more affordable.
For example, FHA loans often have lower down payment requirements, making them a popular choice for first-time buyers.
Research local and federal options to see what might be available to you.**
Consider buying a fixer-upper
A home that needs some work might not have the same curb appeal as a move-in-ready property, but it could save you a significant amount upfront. Fixer-uppers often come with lower purchase prices, giving you room to invest in renovations over time.
Even modest improvements, like fresh paint or updated appliances, can quickly add value and build equity. Just make sure to budget for repairs and consider hiring a home inspector to identify major issues before you buy.
Negotiate closing costs
Closing costs can add up quickly, but many buyers don’t realize they have flexibility in how these costs are paid. Instead of paying them upfront at closing, you may be able to request lender credits, which cover part or all of the costs in exchange for a higher interest rate and APR. This means you're not eliminating the costs but rather spreading them out over time through your mortgage payments.
Similarly, you can ask the seller to contribute toward closing costs, reducing your upfront expenses. You can also shop around for more affordable title insurance or home appraisal services to minimize costs where possible.
Shop around for homeowners insurance
Homeowners insurance varies in price, so getting quotes from several providers can help you find the best coverage at the lowest cost.
How can I start the mortgage process today?
Review your finances to understand how much you can afford and then explore mortgage options.
Next, get a pre-approval, as it not only sets your budget but also gives you an edge when making an offer. With Rate’s Same Day Mortgage, you can streamline the pre-approval process and get quick, reliable results.*
*Rate’s Same Day Mortgage promotion offers qualified customers who provide certain required financial information/documentation within 24 hours of locking a rate on a mortgage loan the opportunity to receive a loan approval within 1 business day of timely submission of documentation and does not suggest that the borrower will receive funding on the same day as their application submission. For purposes of this offer, documents provided after 1 pm local time or on a weekend or company holiday will be deemed submitted the next business day. Rate cannot guarantee that a loan will be approved or that a closing will occur within a specific timeframe. Not eligible for all loan types or residence types. Self-employed borrowers are not eligible. Borrower's interest rate will depend upon the specific characteristics of borrower's loan transaction, credit profile and other criteria. Not available in all states. Restrictions apply. Visit rate.com/same-day-mortgage for terms and conditions.
**Rate, Inc. is a private corporation organized under the laws of the State of Delaware. It has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the Nevada Department of Veterans Services, the US Department of Agriculture, or any other government agency. No compensation can be received for advising or assisting another person with a matter relating to veterans’ benefits except as authorized under Title 38 of the United States Code.