These Are the Top 10 Cheapest States to Buy a Home in 2025

West Virginia

Median home sale price: $211,500
Population: 1,770,071
Median household income: $55,217
Median days on market: 32 days

Nicknamed the Mountain State, West Virginia is a mostly rural state with a few small cities, beautiful scenery, and plenty of opportunities for outdoor activities. Its major cities are Charleston, Morgantown, and Huntington. While the state is the nation’s second-largest coal exporter, it shows promise in the natural gas industry and manufacturing sectors.

Homebuyers come to the state for its overall affordability, welcoming people, access to the Appalachian Mountains, and outdoor activities such as hiking, whitewater rafting, fishing, skiing, and more.

Certain factors contribute to the state’s low property values. West Virginia ranks #50 for infrastructure, #48 for healthcare, and #48 for education.

The median home sale price in Huntington, which sits on the Ohio River, is $129,467. Meanwhile, in Morgantown, home to West Virginia University, the median home sale price is $284,333. In the state’s capital, Charleston, the median home sale price amounts to $186,633.

Ohio

Median home sale price: $217,333
Population: 11,785,935
Median household income: $66,990
Median days on market: 32 days

The Buckeye State, so-called for its beloved state tree, is part of the midwest and borders Lake Erie. Ohio is home to vibrant cities like Cincinnati, Columbus, and Cleveland.

Cincinnati features charming neighborhoods and an exciting craft beer scene, while Columbus is home to The Ohio State University and the bustling North Market. In Cleveland, you’ll find The Rock and Roll Hall of Fame and a large waterfront shopping and nightlife area. The state has more than 40,000 miles of waterways and gets its name from the Ohio River.

Ohio ranks #16 among all states for affordability, with a cost of living index of 91.5. Job growth is at a rate of 2%, slightly below the U.S. average of 2.7%.

The median home sale price in Ohio’s capital city of Columbus is $237,100. Cleveland offers even more affordability, with a median sale price of $100,750. Meantime, in Cincinnati, the typical home sells for $236,817.

Iowa

Median home sale price: $218,146
Population: 3,207,004
Median household income: $70,571
Median days on market: 30 days

Iowa, sometimes referred to as the Hawkeye State, is known for being the first state in the nation to cast its votes for presidential candidates. It’s the country’s top producer of corn and pork, and more than 85% of the state is made up of farmland.

Iowa ranks sixth overall in U.S. News’ list of the best states. It earned third place for opportunity, 10th for infrastructure, and 12th for fiscal stability. The state has the fifth lowest cost of living, and housing is particularly affordable compared to other states.

Des Moines is the state capital and its most populous city but maintains a small-town feel. There’s very little traffic and plenty of family-friendly activities.

The median home sale price in Des Moines is $203,000. If you’re looking for a lively college town that’s big on breweries, museums, and sports, check out Iowa City, where the median sale price is $296,833. Cedar Rapids has a great local restaurant scene and miles of recreational trails. Its median sale price is lower at $201,167.

Oklahoma

Median home sale price: $222,667
Population: 4,053,824
Median household income: $61,364
Median days on market: 35 days

Oklahoma is known as The Sooner State because the first settlers claimed their stake on land before the official opening date. Oklahoma City and Tulsa are its largest cities and the top industries include aerospace, biotechnology, and energy.

People often come to drive Route 66 and visit its many roadside attractions, including a dedicated museum in Clinton. The state has a thriving art scene and is also famous for its delicious Oklahoma-style barbecue.

This southcentral state is an affordable place to live in, and residents enjoy the benefits of a growing economy. Median sale prices in Oklahoma increased by only 3.2% year-over-year in 2024. The median home sale price in Oklahoma City is $212,750 and $220,167 in Art Deco-adorned Tulsa.

Louisiana

Median home sale price: $223,617
Population: 4,573,749
Median household income: $57,852
Median days on market: 62 days

There are endless reasons to love Louisiana, whether it be its Cajun-Creole cuisine, its 400 different festivals, or its storied musical legacy (The Pelican State is the birthplace of jazz and zydeco).

While it’s certainly one of the most affordable housing markets in the country, Louisiana came in last place in U.S. News’ rankings of the best states, as it had low ratings on crime and corrections (#50), economy (#49), infrastructure (#49), and natural environment (#49).

Nonetheless, it’s a great place to live in, hosting some of the country’s world-class universities, namely Tulane University, Louisiana State University – Baton Rouge, and Loyola University New Orleans.

Its most populous city is New Orleans, which has a median home sale price of $293,333. The capital city of Baton Rouge is big on college football and has a great park system. The typical home in the area sells for $226,067. Shreveport, which offers proximity to Dallas and Arkansas, provides the most bang for your buck with a median home sale price of $168,917.

Arkansas

Median home sale price: $235,192
Population: 3,067,732
Median household income: $56,335
Median days on market: 49 days

Arkansas is a southern state bordering the Mississippi River. It has many nicknames, including “The Bear State” and “The Toothpick State.” Walmart is the state’s largest company and recently opened a new 350-acre campus in Bentonville.

The state claimed the #2 spot in the country for affordability, making it a great place for those looking to get a foot on the property ladder. However, it performed poorly in crime and corrections (#49), healthcare (#47), and infrastructure (#42).

The capital, Little Rock, is home to Bill Clinton’s presidential library and Pinnacle Mountain State Park. Its median home sale price is $225,167. Fort Smith, an up-and-coming city that sits on the Arkansas River, is a thriving real estate market, with homes typically selling for $192,833. Fayetteville has a growing population, which has caused home prices to rise in recent years. Its median home sale price is higher than many other parts of the state, at $373,016.

Mississippi

Median home sale price: $236,667
Population: 2,939,690
Median household income: $52,985
Median days on market: 56 days

Mississippi is a state rich in history and often regarded as the birthplace of the blues. The Magnolia State is heavily forested, boasting six national forests locals enjoy. It offers peace and quiet thanks to its low population density.

Although it’s one of the best places to find an affordable home, Mississippi ranks poorly in the economy category, ranking 50th out of all the U.S. states. It comes in at #50 as well for healthcare quality and #48 for infrastructure. Its biggest industries are agriculture and forestry, owing to its abundance of farm and forestlands.

The two largest cities in Mississippi are Jackson, where the median home sale price is $113,167, and Gulfport, which touts a median home sale price of $203,983. Homes in Jackson, for example, typically range from $20,000 for a fixer-upper to over $3 million for an extravagant mansion.

Alabama

Median home sale price: $241,667
Population: 5,108,468
Median household income: $59,609
Median days on market: 50 days

Alabama is a nature lover’s paradise, offering white-sand beaches along the Gulf of Mexico, rock climbing spots in the foothills of the Appalachians, and boating and swimming destinations on Lake Martin. One of its biggest industries is aviation and aerospace, with NASA’s Marshall Space Flight Center and several Boeing facilities located in Huntsville.

Alabama ranks #44 overall in U.S. News’ list of the best states, earning middle-of-the-pack scores for its economy (#32), infrastructure (#36), and opportunity (#31).

Huntsville is the state’s most populous city, a thriving hub for the aerospace industry. Its median home sale price is $275,000 and has been increasing steadily for several years. Birmingham is a great city for housing affordability with a median home sale price of only $128,300. Meanwhile, the capital city of Montgomery has a thriving riverfront and a typical home sale price of $148,333.

Indiana

Median home sale price: $245,905
Population: 6,862,199
Median household income: $67,173
Median days on market: 33 days

Located in the heart of the midwest, Indiana is known as the Hoosier State. It has seen the most manufacturing job growth nationwide and boasts the second-largest automotive industry.

Indianapolis and Fort Wayne are the most populous cities in Indiana. Indianapolis is well known for its motor speedway and its races that draw in spectators from all over the world, especially the Indy 500. It has a well-known zoo, museums, and a state park, among other attractions. Meantime, Fort Wayne enjoys an extensive network of parks and boulevards that connect its three rivers.

The median home sale price in Indianapolis is $233,833, while Fort Wayne is slightly higher at $241,317.

Kentucky

Median home sale price: $249,167
Population: 4,526,154
Median household income: $60,183
Median days on market: 32 days

Kentucky is nicknamed the Bluegrass State but others call it the Horse Capital of the World because it’s home to famous racetracks and more than 450 horse farms. It plays host to the most-watched horse race of the year, The Kentucky Derby, which is held annually on the first Sunday in May at Churchill Downs in Louisville. Besides horses, the state is also known for producing outstanding bourbon.

Kentucky is considered very affordable, with a cost of living index of 89.4 (100 being the U.S. average). It’s placed in the middle of the pack when it comes to rankings like infrastructure (#24) and natural environment (#28).

Frankfort is the capital of Kentucky and its largest cities are Louisville and Lexington. The median home sale price in Louisville, the state’s most populous city, is $248,333. In Lexington, the typical house sells for $313,317.

Hidden costs to consider in affordable areas

If you’re keen on buying a home in one of the cheapest states mentioned, beware of costs that may not be immediately apparent. The following factors can affect the true cost of living:

• Longer commutes: If the area you’re eyeing is far from your workplace or schools, you may spend more on transportation costs.
• Limited amenities: Some budget-friendly neighborhoods lack convenient access to essential services, such as healthcare, grocery stores, or entertainment, which also makes residents spend more on travel.
• Lower property values and resale potential: It’s possible that the home you want in an affordable neighborhood would appreciate at a slower pace, limiting long-term investment gains. This can make selling or refinancing a home more difficult.
• Higher utility costs: Older homes may require more maintenance or energy to keep homeowners comfortable, leading to higher utility bills.
• Safety and crime: Some lower-cost areas may be selling for less because of high crime rates or safety concerns. While you may save money at your purchase, you may face additional costs in installing modern security systems or getting insurance.

Explore the most affordable places to buy a home

Buying a home is likely the most expensive transaction you’ll ever make. This is why it’s crucial to do careful research before making a move, looking into the most affordable property hotspots in the country. Explore quieter, rural towns and up-and-coming cities in the states mentioned so you can get the best value for your money.

In addition to home prices, don’t forget to factor in the total cost of homeownership, including maintenance, taxes, and utilities, so you can better prepare financially. With thorough preparation and research, you’ll be in a stronger position to turn the dream of owning a home into a reality.

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