Home affordability has been a big issue over the past months, especially with mortgage rates and housing prices surging. At the time of writing, mortgage interest rates remain above 7%, and the average median home sales price is $431,000.
Many factors affect the average price of homes. Home affordability can vary depending on the state. Are you looking to purchase a new property? Here are the five states with the most affordable home prices.
Mississippi
Mississippi, known also as the Magnolia State, has a cost of living index of 83.3, the lowest in the nation. Compared to the national average, the cost of living in the state is 16% lower than the national average. This also translates to housing costs. The median price for a single-family home in the state is $140,818, per World Population Review.
Alabama
Alabama has the lowest rate of property taxes on this list. Despite that, the state has rich educational opportunities and facilities for state residents. At least five schools in the state were named National Blue Ribbon Schools in 2023.
When it comes to housing prices, the average per-square-foot pricing in Alabama is $114, while the average prices of homes are $170,000.
Iowa
Iowa may have high property tax rates, at 1.53%, but the low housing prices in the state make it one of the most affordable places to live in. On average, Iowa homes cost $114 per square foot, with the average house price at $165,000.
Arkansas
Arkansas is known for being the home of several bustling metro areas, such as Little Rock and Fayetteville. However, it is also home to the quiet Ozark Mountain towns, which means the state can accommodate residents with various lifestyles and budgets.
The average per-square-foot pricing in Arkansas is $101. The average home price is just below $150,000, making Arkansas the state with the second-lowest average house costs.
West Virginia
West Virginia tops the list of states with the least expensive homes in the nation. Homebuyers can expect an average of $98 per square foot, with home listings averaging $140,000. The state's property tax rate is also 0.57%, per Forbes.
Apart from its low housing prices, West Virginia is marked by quaint and active college towns with several national parks to explore.
A house is for sale in Arlington, Virginia, July 13, 2023.
