Cheapest States to Buy a House: Finding Homes Under $100K
- Published on
- 10 min read
-
Richard Haddad Executive EditorClose
Richard Haddad Executive EditorRichard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.
When competing on a playing field of high interest rates, elevated home prices, and inflation woes, many renting Americans feel sidelined in the game of homeownership. Some would-be buyers are reevaluating their must-have lists, including their preferred buying locations. To this end, home shoppers are seeking out the cheapest states to buy a house.
But it’s not just first-time buyers looking for cheaper homes. Older homeowners are also considering the benefits of relocating and downsizing into a small home that they can purchase outright — using the equity from their existing home to eliminate mortgage payments.
In this post, we take a look at the cheapest states to buy a house. From understanding the historic cost of homes to uncovering hidden gems under $100K, we’ll arm you with the insights you need to make informed decisions on your home-buying journey.
Looking to Buy a Home in a More Affordable State?
If you are looking to relocate to a more affordable state to buy a home, look no further. Work with a top agent to make homeownership a reality. HomeLight analyzes millions of transactions and thousands of reviews to determine which agent is best for you based on your needs.
What’s the national median home price for comparison
As of the start of 2024, navigating the real estate market presents a unique challenge for both first-time homebuyers and seasoned homeowners alike.
According to the National Association of Realtors, the median price for an existing U.S. home is $382,600 as of Q1 2024. The Federal Reserve Economic Data (FRED) website estimates the median price at $417,700.
Whether you’re a newcomer eager to invest in your first property or an older homeowner contemplating the benefits of downsizing, this $400,000 average price point can serve as a benchmark as you research the cheapest states to buy a house.
How much have homes cost over the years?
Tracing the trajectory of home prices over the decades offers a compelling snapshot of the American dream’s evolution. The table below lays out a timeline, showing how median home prices have surged from a modest $11,900 in 1960 to an eye-opening $417,700 by 2024.
Median sales price of U.S. homes 1960-2024
| Year | Median home price | Year | Median home price |
| 1960 | $11,900 | 1995 | $130,000 |
| 1965 | 20,200 | 2000 | $165,300 |
| 1970 | $23,900 | 2005 | $232,500 |
| 1975 | $38,100 | 2010 | $222,900* |
| 1980 | $63,700 | 2015 | $289,200 |
| 1985 | $82,800 | 2020 | $329,000 |
| 1990 | $123,900 | 2024 | $417,700 |
*The 2008 housing market crash took median home prices from a high of $257,400 the year before to a low of $208,400 in 2009. Price source: Federal Reserve Economic Data (FRED)
This historical perspective not only highlights the dramatic increase in property values but also underscores the economic shifts and market dynamics that have shaped home buying over the years. The notable dip seen in 2010, following the 2008 housing market crash, serves as a stark reminder of the market’s volatility.
What are the cheapest states to buy a house?
Here’s a look at the 16 states with the most affordable median home sale prices, ranging from $228,000 to $289,900. It’s important to note that every state will have areas with lower-than-average property values, but these are the only states that currently boast a statewide median home price that falls below $300,000.
16 cheapest states to buy a house in 2024
| State | Median home price | State | Median home price |
| Ohio | $228,000 | Kentucky | $246,700 |
| Mississippi | $232,800 | Kansas | $263,700 |
| Oklahoma | $233,900 | Illinois | $266,800 |
| Michigan | $238,800 | Alabama | $267,100 |
| Indiana | $242,500 | Pennsylvania | $268,100 |
| Louisiana | $243,300 | Nebraska | $280,400 |
| Missouri | $243,500 | West Virginia | $284,000 |
| Arkansas | $246,000 | Iowa | $289,900 |
Source: Redfin Monthly Housing Data (January 2024)
Whether you’re a first-time homebuyer, a retiree looking to downsize, or simply searching for a more affordable living situation, these states may offer opportunities for homeownership, which can translate to financial progress and a more fulfilling lifestyle.
However, while these states may have the cheapest current median home sale prices, buyers must also keep in mind cost of living factors when making a move. These include expenses for such things as:
- Housing/rent/mortgage
- Energy/utility costs
- Food/groceries
- Transportation/vehicles/transit needs
- Healthcare/doctors/hospitals
- Clothing
- Education/schools
- Childcare
- Entertainment
Top inbound migration states
According to the latest Allied Van Lines Migration Report, the following states have the highest number of people moving in:
- South Carolina
- Arizona
- Tennessee
- North Carolina
- Florida
See an interactive map and check out your state and city inbound/outbound migration numbers on Allied’s National Movers Study page.
Can I find a house for under $100K?
In the quest for affordability, one might wonder, “Can I find a house for under $100K?” The answer is yes, though it requires a strategic approach to house hunting and flexibility in location preference.
Real estate listing sites like Zillow are invaluable tools in this pursuit, offering the ability to filter searches by dollar amount to find homes that match your budget criteria. In the example screenshot below, we searched for homes under $100,000 in Birmingham, Alabama.
- Our research across various states, particularly those with the lowest median home prices — and a few others — sheds light on what’s available for under $100,000. This exploration is not just theoretical; we’ve put it into practice, using Zillow to conduct searches in 21 selected states.
The table below represents some of the opportunities across the country to find listings under $100K. This snapshot not only guides you to states and cities where your dream of homeownership can become a reality on a budget but also exemplifies the utility of online real estate platforms.
Best states to buy a house for under $100K
| State | Listings under $100K | Example city |
| Alabama | 501 | Birmingham (171 results) |
| Arkansas | 991 | Little Rock (55 results) |
| Georgia | 997 | Augusta (36 results) |
| Illinois | 2,384 | Springfield (86 results) |
| Indiana | 1,167 | Evansville (90 results) |
| Iowa | 500 | Davenport (30 results) |
| Kansas | 696 | Wichita (49 results) |
| Kentucky | 805 | Louisville (71 results) |
| Louisiana | 634 | Baton Rouge (131 results) |
| Michigan | 640 | Detroit (489 results) |
| Mississippi | 832 | Jackson (173 results) |
| Missouri | 1,583 | St. Louis (189 results) |
| New York | 1,494 | Rochester (124 results) |
| Ohio | 2,246 | Cleveland (327 results) |
| Oklahoma | 504 | Tulsa (53 results) |
| Pennsylvania | 500 | Philadelphia (404 results) |
| South Carolina | 492 | Columbia (49 results) |
| Tennessee | 500 | Memphis (273 results) |
| Texas | 2,786 | Houston (179 results) |
| West Virginia | 597 | Huntington (126 results) |
| Wisconsin | 364 | Milwaukee (138 results) |
Source: Zillow (February 2024)
Home shopping tips
Navigating the real estate market can be a daunting task, especially for those looking to maximize value while sticking to a budget. To help you through this journey, here are some essential home shopping tips that can streamline the process and enhance your buying experience:
- Set a shopping budget: Before diving into property listings, assess your finances to determine how much you can afford to spend. Remember to account for additional costs like taxes, insurance, and maintenance.
- Shop mortgage rates: Don’t settle for the first mortgage offer. Rates can vary significantly between lenders, so compare multiple options to find the best deal.
- Use a mortgage calculator: These online tools can help you estimate your monthly payments, taking into account the loan amount, interest rate, and loan term. This can guide your budgeting process.
- Get preapproved for a loan: A preapproval letter from a lender not only gives you an idea of your borrowing capacity but also strengthens your position as a buyer when you make an offer on a home.
- Be prepared to take action: In many markets, the best deals don’t last long. Having your finances in order and knowing what you want can help you move quickly when you find the right property.
- Find a top real estate agent: A knowledgeable agent can make a world of difference, offering insights into local market trends, negotiating on your behalf, and guiding you through the complexities of the buying process.
Already Own a Home? What's It Worth Now?
Home values have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight’s free Home Value Estimator.
Pitfalls to avoid when buying a cheap house
When hunting for a bargain in the real estate market, it’s easy to get caught up in the excitement of finding a low-priced home. However, some deals are too good to be true, hiding costly issues that can turn your dream home into a nightmare. To navigate your search more safely, here are key pitfalls to avoid when buying a cheap house:
- Undesirable location: Be wary of homes in less-than-ideal locations, such as next to a convenience store, landfill, strip clubs, near power plants. These factors can affect your living experience and the home’s future resale value.
- High crime rate: Research the overall crime rate of the city and the specific neighborhood. A cheap home is not a bargain if it compromises your safety and security.
- Extensive water damage: Look out for signs of leaky roofs or water damage. These issues can indicate significant structural problems that are expensive to repair.
- Shoddy upgrades: Be cautious of homes with poorly executed renovations. These might cover deeper issues with the home’s structure or systems, leading to costly fixes down the line.
- Unfinished renovation work: A house with abandoned upgrade projects can signal financial or legal troubles, potentially leaving you with the burden of completing these costly projects.
- Surrounded by vacant lots: A high number of empty properties in a neighborhood can be a sign of a declining area, potentially impacting the home’s value and your quality of life.
- Underperforming schools: For those with or planning to have children, the quality of nearby schools is crucial. Homes in areas with poorly rated schools might be cheaper but could affect your child’s education and the property’s appeal to future buyers.
By keeping these pitfalls in mind, you can better navigate the market for affordable homes, ensuring that your investment is sound and your new home is a place of comfort and security, not a source of endless problems and expenses.
Can I buy a home with my existing equity?
Absolutely, leveraging the equity from your current home can be a smart way to buy your next home. This strategy allows you to use the value you’ve built up in your existing property to bring about the purchase of a new one. Many homebuyers use this advantage to reduce or eliminate monthly home loan payments, especially when retiring or downsizing.
HomeLight offers a modern Buy Before Your Sell program that allows you to use the equity from your current property to help purchase the home you want. This innovative program simplifies the entire transition. Check out our video below explaining the Buy Before You Sell program and see how easy it can be to move into your next home seamlessly.
Here’s how HomeLight Buy Before You Sell works:
It takes only a few minutes to find out if your current house is a good fit for the HomeLight Buy Before You Sell. There’s no cost to apply and no commitment. With our innovative equity unlock calculator, you can be approved in 24 hours or less.
Ready to shop for a home?
Are you ready to find your next home? Whether you’re a first-time buyer, looking to downsize, or seeking to leverage the equity in your current home, HomeLight can connect you with top real estate agents in whatever state you choose.
An expert agent is equipped with the local knowledge and experience to help you navigate the market, find the best deals, and make your home-buying process as smooth and successful as possible.
We wish you the best of luck on your journey to homeownership.
»Learn more: 10 Rules of Thumb to Determine How Much House You Can Afford
Header Image Source: (robertcrum / DepositPhotos)
At HomeLight, our vision is a world where every real estate transaction is simple, certain, and satisfying. Therefore, we promote strict editorial integrity in each of our posts.
