10 Cheapest States to Buy a House

Table of Contents:

Introduction

With increasing housing prices, you may be considering broadening your search to find the cheapest states in which to buy a house. Of course, one of the top considerations in your research for any home should be the cost of the house. However, there is also a lot of required planning and a process to buying a house, as outlined below.

1. Start your research early
2. Decide your budget
3. Get prequalified and preapproved for a mortgage
4. Find your ideal real estate agent
5. Shop around and make an offer
6. Schedule your home inspection
7. Secure your loan with a mortgage banker
8. Have the home appraised
9. Coordinate the paperwork (a title company will typically handle this)
10. Complete all required paperwork and close the sale

Deciding on a location can be a challenge and should be part of your early research.

The Cheapest States To Buy A House

Mississippi is the least expensive state to live in. In Mississippi, you will find low housing costs, cheaper groceries, transportation, and healthcare. The other side of low housing costs also means the homes have lower values than in other cities around the country and lower tax housing tax rates. Alabama is the third cheapest state, with reported median annual real estate taxes at $679. Arkansas is the second most affordable state, with median annual real estate taxes costing just $936.

Here are the top five cheapest states to live in:

1. Mississippi
2. Arkansas
3. Alabama
4. Oklahoma
5. Ohio

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Frequently Asked Questions

What state has the nicest, cheapest houses?

South Dakota has the nicest, cheapest houses in the country. The houses, on average, offer the best quality for the price.

In this category, South Dakota is followed by Michigan, West Virginia, Oklahoma, and North Dakota.

Where is the least expensive place to buy a home in the United States?

Cleveland is a regular on lists that detail the most affordable places in the United States to live. The city is less densely populated than other cities and has lower taxes, low transportation costs, and relatively low healthcare costs. Many retirees live in Cleveland, and the city is also home to many start-up businesses.

In which state should I buy a house in 2022?

Iowa has the lowest median house price as of September 2021 at $147,000. The state is followed by Indiana, Ohio, Nebraska, and Kansas in median home prices.

Which states have the lowest cost of living?

Mississippi has the lowest cost of living when compared to other states.

What is the best state to live in in 2022?

According to World Population in Review, there are the top states in 2022.

Washington – Washington state ranks first as the best state to live in.

1. The state has a high ranking in health and education, economy, and infrastructure. Residents do not pay a state income tax, and the job market is doing well. The city has many global businesses and higher education choices. The state also places value on the environment and has beautiful scenery.

New Hampshire – New Hampshire is the second-best state in the United States.

1. The state has high rankings in opportunity and crime and corrections, natural environment, and education. In addition, the state is one of the safest and healthiest in the country. New Hampshire has a thriving job market, with one of its biggest cities, Portsmouth, ranking highly as a top job market.
2. Minnesota – Minnesota is the third best state to live in. The state has high rankings in natural environment, a strong economy, and vibrant art, entertainment, and culture scene. In addition, the cities in the state are very clean and green friendly.

What is the most expensive state to live in in 2022?

According to World Population in Review, the most expensive states are outlined below.

1. Hawaii – Hawaii is the most expensive state to live in in the United States. The average home price in Hawaii is over one million dollars. In addition, the average monthly energy bill is over $380, and basic goods cost more than anywhere in the mainland United States due to shipping costs.
2. District of Columbia – Washington D.C. is the second-most expensive state in the United States. It has the second-highest prices in housing, with a two-bedroom apartment averaging over $2700 per month. The median home value is over $620 thousand, and the average living wage is $67,867, the highest in America. The state also has the highest household income in the country at $85,203 annually.
3. California- California is the third-most-expensive state in the U.S., with notoriously high housing and transportation costs. The state’s average two-bedroom apartment costs around $2400 per month, and popular cities, including San Francisco and Los Angeles, have even higher rents. In addition, the state’s gasoline prices are the highest in the United States, and the average energy bill is over $230 per month.

What states have the cheapest land in the United States?

Tennessee, Arkansas, and West Virginia are the cheapest states to buy land. All three states provide excellent venues for residential development with mountains, lakes, flat ground, landmarks, and notable attractions like Graceland in Nashville, Tennessee. In addition, the land in these states falls anywhere between thirty to forty percent below the median average price for land per acre nationally.

Cheapest Land Near Water

For many, living near water is a highly prized location. There are many land options in Oregon and Washington, with opportunities to be near several bodies of water. Oregon has popular areas such as Adventure Coast and the North Bend region.

The Adventure Coast is in a vibrant city. Another great location, Ocean Shores, is a three-hour drive from Seattle. For those who desire warmer weather, Boynton Beach in Florida is popular, along with Myrtle Beach in South Carolina. These cities also have more affordable properties for sale and a beach lifestyle. Additionally, lakeside opportunities are abundant in New York and Pennsylvania.

Cheapest Land for Farming

Farming land has different requirements than residential land. There are options for all types of farms, from high functioning dairy farms to small farms with a few animals or crops. The cheapest land will be the land with rough terrain and difficult soil in states such as Arkansas and Louisiana. The ideal farmland has flat, square, and soil-rich plots and can be found in more expensive states. Nebraska is a popular choice for small farms where farmers receive tax credits and training.

Cheapest Land Near the City

Many investors look for land near the city to purchase large lots to build residential homes. These lots are close to the big cities of Lexington, Kentucky, where land costs anywhere from $4,000 to $6,000 per acre. The land is wide-open and has the perks of being near the big city. Cheap land exists all over the country, with popular cities also, including Tampa Bay, Florida, Chattanooga, Tennessee, and Buffalo, New York. Jacksonville, Florida, is also a booming area with vacant real estate land.

It is beneficial to know the type of land you want to buy in your search. For example, all types will have different requirements if you wish to build a sprawling farm, a vacation home, or a more affordable option. The goal is not to always find the cheapest land available but to find what works best for you and your specific situation.

What is the easiest state to buy a house in?

Iowa is the most accessible state for first-time buyers due to its affordable home prices and the strong job market for Millennials. The state has a thriving job market with low unemployment, and there is a lot of credit available for new buyers. Utah, Minnesota, Kansas, and Missouri are also good options for buying their first home. Look in several states if you can do so. Also, buying a smaller house a little further away from the city is a good option.

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Which states have the most competitive markets for real estate?

1. Washington – Washington Comes in at number one in the nation for the second year in a row. Washington’s real estate market has consistently been hot and fast-moving throughout 2020 and 2021. However, in a housing market 34 percent more competitive than the national average, buying a home in the Evergreen State has cost home buyers more money than initially anticipated. With over 60 percent of homes sold above their list price and dwindling inventory to match, new homes on the Washington housing market have remained tough to purchase.
2. Colorado – Colorado is home to beautiful hiking ranges, impeccable ski slopes, and some of the most cutthroat homebuyers in the nation. As a result, the Centennial State’s real estate market in 2021 has been second-most competitive in the U.S., with a Competitive Market Score 34 percent greater than the national average. As a result, properties in Colorado have been flying off the market this past year, with 24 percent more houses being sold within two weeks of their listing date than the nationwide mean.
3. New Hampshire- Third in the nationwide rankings for having one of the most competitive real estate markets over this past year, prospective buyers in the Granite State faced a 32 percent more competitive market than average in 2021. New Hampshire’s state motto may be to live free or die, but the cost of a new home is anything but; with over 60 percent of new properties being sold above list price, real estate in New Hampshire is in demand with the price tag to prove it.

Summary

Researching the perfect state and price point is essential to the home buying process. The cheapest states to buy homes have plenty to offer in terms of affordability and quality. Many factors are associated with moving to a new state. Whether you are seeking a new place in the city or a beachside retreat, you may be surprised at the options you find available!