The Absolute Cheapest State to Buy A House Is…

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When you’re buying a new home, it’s all about location, location, location. Based on where you decide to live, you may have lower home costs, but pay more in utilities. Or, you could pay a higher mortgage but your property taxes will skyrocket. With home prices on the rise across the country, it can be difficult to know exactly where to buy.

Homebuyer.com helped us answer that exact question. The Austin-based company, which lends mortgages to first-time home buyers, pulled together income data and home prices in every state to find the cheapest — and most expensive — states to buy in 2021. These ten are the least costly.

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The cheapest states to buy a house in 2021

1. Iowa: Median home price: $147,800; Estimated monthly mortgage payment: $702
2. Indiana: Median home price: $141,700; Estimated monthly mortgage payment: $673.23
3. Ohio: Median home price: $145,700; Estimated monthly mortgage payment: $692.24
4. Nebraska: Median home price: $155,800; Estimated monthly mortgage payment: $740.22
5. Kansas: Median home price: $151,900; Estimated monthly mortgage payment: $721.70
6. Mississippi: Median home price: $119,000; Estimated monthly mortgage payment: $565.38
7. West Virginia: Median home price: $119,600; Estimated monthly mortgage payment: $568.23
8. Oklahoma: Median home price: $136,800; Estimated monthly mortgage payment: $649.95
9. Michigan: Median home price: $154,900; Estimated monthly mortgage payment: $735.95
10. Arkansas: Median home price: $127,800; Estimated monthly mortgage payment: $607.19

What kind of bang for your buck can get you in these states?

Do those low prices have you itching to pick up and move? We scoured Zillow for you to find a home at the median price in each state, so you know exactly what you’ll get for your money when you get there.

Iowa: At $148,000 in Paullina, Iowa, you can get this historical three-bedroom, two-bathroom Main Street home with — count ‘em — two laundry rooms.

Indiana: This retro-styled three-bedroom, two-bathroom home in Berne, Indiana, for $142,000 even has its own adorable gazebo.

Ohio: In Coshocton, Ohio, you can get this newly remodeled four-bedroom, two-bathroom historic home with a gorgeous front porch for $145,500.

Nebraska: Enjoy city life in Omaha with this centrally located renovated 1890s four-bedroom, two-bathroom home for $155,000.

Kansas: If you love open-concept living, this Dighton, Kansas home is for you, offering three bedrooms, two bathrooms, and move-in ready appeal for $152,000.

Mississippi: This three-bedroom, two-bathroom home in Woodville, Mississippi, is a nature-lover’s dream: up in the trees, right on the lake, and with a dedicated fish-cleaning space, all for $119,000.

West Virginia: You can truly get out into the country in this Amish-built five-bedroom, two-bathroom home in the one-stoplight town of Glenville, West Virginia, on sale for $119,900.

Oklahoma: With a large yard and some beautiful artistic touches inside, this three-bedroom, one-bathroom home in Tulsa is move-in ready and perfect for a new family at $136,000.

Michigan: Enjoy a home immersed in nature in this $154,900 three-bedroom, one-bathroom chalet in Hersey, Michigan. You’ll have a large yard, a wooded spot to sit, and your own section of the river.

Arkansas: This three-bedroom, three-bathroom home in Cherokee Village, Arkansas, has landscaping waiting for your garden and a public beach nearby. It’s listed at $128,000.

The most expensive states to buy a house in 2021

On the pricier side, the two most expensive states to buy a home are repeats from last year: Hawaii and California. Hawaii has a median home price of $615,300 with an estimated monthly mortgage payment at $2,923.36. California’s median home price is $505,000, with an estimated monthly payment of $2,399.32.

Looking for an island getaway? This quaint 968-square-foot corner townhouse in Mililani, Hawaii, has three bedrooms, two bathrooms, and an enormous amount of natural Hawaiian sunlight. And parking is included.

Or live just minutes from the Pacific Ocean coastline in this sunny southern California two-bedroom, two-bathroom condo in San Diego. The building is luxe and the condo itself faces west for those perfect panoramic sunsets.

What does housing affordability look like in the near future? 

It’s all over the news that inflation is rising, and with it, home prices are rising, too. That has been the trend throughout 2021, and Dan Green, CEO of Homebuyer.com, expects it to continue into 2022 as well.

“Home affordability is a function of mortgage rates more than home prices,” he says. “At today’s rates, a half-percentage point change in rates would have the equivalent effect of a 6 percent change in home prices — up or down. Mortgage rates respond poorly to inflationary pressures so it wouldn’t be abnormal to see rates rise between now and the spring home-buying season.”