Think Homes Are Out of Reach? 10 States Proving You Wrong on Price

I’ve been investing in real estate for more than half my life, and the current housing market is unlike anything I’ve seen before. Home prices have shot up, and mortgage rates are high. This means buying a home now costs nearly twice as much as it used to.

According to the latest data from RubyHome, the median home price in the United States reached $422,550. On average, you’re looking at about $224 per square foot for a typical American home, with the median size being 2,014 square feet.

In this article, we’ll take a closer look at states where homes are more affordable and those that are more expensive. This information can help you figure out where you might be able to find your dream home without breaking the bank.

Top 10 Most Affordable States 

Recent reports reveal that most Americans can no longer afford an average house. A family now needs to earn $104,016 annually to afford a median-priced home in the U.S. But there’s good news, some states still offer affordable housing options. 

To identify these locations, we considered four key factors: median home price, median price per square foot, median home size, and average household income. These elements help us understand true housing affordability in each state.

Let’s check out the top 10 most affordable states for homebuyers. You’ll notice many are in the South and Midwest. These regions often have lower living costs overall, not just in housing.

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1. West Virginia

West Virginia tops our list as the most affordable state for homebuyers. The median home price here is just $155,687, making it a great option for budget-conscious buyers. 

You’ll pay about $119.56 per square foot, which is significantly lower than the national average. The median home size in West Virginia is 1,752 square feet, offering plenty of space for most families. 

With a median household income of $39,770, many residents find homeownership within reach in this beautiful Appalachian state.

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2. Mississippi

Mississippi comes in second on our affordability list with a median home price of $171,998. You’ll get more space for your money here, with a median home size of 2,065 square feet. 

The price per square foot is a reasonable $130.46, allowing you to stretch your housing budget further. Despite having the lowest median household income on our list at $37,500, many Mississippi residents can still afford to buy a home thanks to the state’s low housing costs.

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3. Arkansas

Arkansas offers a great balance of affordability and space. The median home price in the Natural State is $199,284, just under the $200,000 mark. You’ll find homes averaging 1,860 square feet, providing ample room for comfortable living. 

At $134.74 per square foot, Arkansas homes offer good value for money. The median household income of $39,060 puts homeownership within reach for many Arkansas families.

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4. Oklahoma

Oklahoma’s housing market is a haven for affordable homes. The median home price here is $200,203, offering great value for buyers. You’ll get about 1,941 square feet of living space in a typical Oklahoma home. 

The price per square foot is $167.50, which is still well below the national average. With a median household income of $41,480, many Oklahoma residents find that the dream of homeownership is very much alive in their state.

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5. Louisiana

Louisiana’s housing market offers affordability with a touch of Southern charm. The median home price in the Pelican State is $200,947, just a hair above Oklahoma’s. You’ll find homes averaging 1,955 square feet, giving you plenty of room to spread out. 

At $149.65 per square foot, Louisiana homes are a bargain compared to many other states. The median household income of $41,320 means many Louisiana families can realistically aspire to homeownership.

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6. Kentucky

Kentucky’s housing market is a bright spot for affordable homeownership. The median home price in the Bluegrass State is $201,033, offering great value for buyers. You’ll get about 1,953 square feet in a typical Kentucky home, providing ample space for most families. 

The price per square foot is $155.86, which is quite reasonable compared to national figures. With a median household income of $43,730, Kentucky residents often find that buying a home is within their financial reach.

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7. Iowa

Iowa’s housing market offers a mix of affordability and higher incomes. The median home price here is $215,458, which is higher than some states on our list but still very reasonable. Iowa homes tend to be a bit smaller, with a median size of 1,623 square feet. 

The price per square foot is $187.99, reflecting the state’s balance of cost and quality. With a median household income of $46,460, many Iowa residents find that homeownership is an achievable goal.

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8. Kansas

Kansas offers homebuyers a lot of space for their money. The median home price in the Sunflower State is $216,131, which is very reasonable for the amount of house you get. Kansas homes are spacious, with a median size of 2,020 square feet. 

The price per square foot is an attractive $135.92, one of the lowest on our list. With a median household income of $45,250, many Kansas families find that their dream of owning a home is well within reach.

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9. Ohio

Ohio’s housing market offers a great combination of affordability and earning potential. The median home price in the Buckeye State is $220,542, which is the highest on our affordable list but still well below the national median. 

Ohio homes average 1,803 square feet, offering a good amount of living space. The price per square foot is $146.77, which is quite reasonable for the region. 

Ohio boasts the highest median household income on our affordable list at $46,690, making homeownership a realistic goal for many residents.

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10. Alabama

Alabama rounds out our list of affordable states with some impressive numbers. The median home price here is $220,419, offering great value for buyers. Alabama homes are the largest on our affordable list, with a median size of 2,146 square feet. 

The price per square foot is $155.82, which is a bargain for the amount of space you get. With a median household income of $41,350, many Alabama families find that owning a spacious home is an achievable dream in their state.

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Top 10 Most Expensive States

Now that we’ve seen the most affordable states for homebuyers, let’s look at the other end of the spectrum. These states have the highest housing costs in the country. 

The prices in these areas might surprise you, especially compared to the affordable states we just discussed. Keep in mind that even in these expensive states, you can still find more affordable options if you look in different areas or consider smaller homes. 

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1. Hawaii

Hawaii tops our list as the most expensive state for homebuyers. The median home price here is a staggering $966,572, nearly a million dollars. You’ll pay about $743.86 per square foot, which is more than three times the national average. 

The median home size in Hawaii is just 1,164 square feet, the smallest on our list. With a median household income of $50,510, many residents find it very challenging to afford a home in this tropical paradise.

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2. California

California comes in second on our expensive list with a median home price of $762,981. You’ll get more space than in Hawaii, with a median home size of 1,860 square feet. 

The price per square foot is $442.70, still well above the national average. California’s median household income is $54,030, which helps a bit with the high prices, but many residents still struggle to afford homes in the Golden State.

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3. Massachusetts

Massachusetts ranks third on our list of expensive states. The median home price here is $608,542, which is quite high but still significantly less than Hawaii or California. Massachusetts homes average 1,800 square feet, providing a decent amount of living space. 

The price per square foot is $398.77, reflecting the state’s high property values. With the highest median household income on our list at $60,690, some Massachusetts residents find homeownership more attainable than in other expensive states.

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4. Washington

Washington State’s housing market is the fourth most expensive in the country. The median home price here is $593,406, offering larger homes than some of the pricier states. You’ll find homes averaging 2,185 square feet, providing ample room for most families. 

The price per square foot is $335.73, which is high but lower than the top three. With a median household income of $59,920, Washington residents often face challenges in affording homes, especially in popular areas like Seattle.

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5. Colorado

Colorado ranks fifth on our list of expensive states. The median home price in the Centennial State is $555,300, which is high but offers more space than some pricier states. Colorado homes are spacious, with a median size of 2,464 square feet. 

The price per square foot is $279.55, which is high but the lowest among our top five. With a median household income of $54,050, many Colorado residents find homeownership challenging but not impossible, depending on the specific area.

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6. Utah

Utah’s housing market ranks sixth on our expensive list. The median home price here is $522,488, which is high but offers the most space of any state on our expensive list. Utah homes are very large, with a median size of 2,800 square feet. 

The price per square foot is $259.05, which is actually the lowest on our expensive list. With a median household income of $47,020, Utah residents get more houses for their money compared to other expensive states, but many still find homeownership a financial stretch.

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7. Oregon

Oregon comes in seventh on our list of expensive states. The median home price in the Beaver State is $506,627, which is high but offers a middle ground in terms of space. Oregon homes average 1,946 square feet, providing a good amount of living area. 

The price per square foot is $307.86, which is high but not as extreme as some states higher on the list. With a median household income of $50,010, many Oregon residents find homeownership challenging, especially in popular areas like Portland.

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8. New Jersey

New Jersey ranks eighth on our expensive list. The median home price here is $500,717, which is high but comes with less space than some other expensive states. New Jersey homes average 1,753 square feet, smaller than most on this list. 

The price per square foot is $266.77, reflecting the state’s high property values. With a median household income of $54,860, some New Jersey residents find homeownership more attainable than in other expensive states, but it’s still a significant financial challenge for many.

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9. New Hampshire

New Hampshire is the ninth most expensive state on our list. The median home price here is $467,775, which is high but offers a decent amount of space. New Hampshire homes average 1,934 square feet, providing a good amount of living area. 

The price per square foot is $267.29, which is high but lower than many states on this list. With a median household income of $49,980, New Hampshire residents often find homeownership challenging but potentially more achievable than in states higher on the expensive list.

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10. Montana

Montana rounds out our list of expensive states. The median home price here is $447,845, the lowest on our expensive list but still well above the national average. 

Montana homes are quite spacious, with a median size of 2,200 square feet. The price per square foot is $324.53, which is high but offers good value in terms of space. 

With a median household income of $45,690, the lowest on our expensive list, many Montana residents find homeownership a significant financial challenge despite getting more house for their money than in some pricier states. 

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Balancing Affordability and Opportunity

Andrew Herrig, a real estate investor and founder of Wealthy Nickel, noted an interesting trend in many lower-scoring states. “Many job-creation engines in the Sunbelt states did not make the top ten from an affordability perspective. However, states like Texas, North Carolina, and Georgia provide robust economies for job seekers while still providing relatively affordable housing.” 

There is a balance between affordability and desirability. It’s important to understand that the cheapest option may not be the best over the long term. Housing prices are just one factor when considering where to live. Prices are driven by demand. 

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Caution in High-Cost Markets 

John Dealbreuin, a real estate investor who lives in San Francisco and writes about personal finance at Financial Freedom Countdown, cautions about buying properties in California and Hawaii. John explains, “Although the average household income is higher, the debt-to-income ratio could become unsustainable with mortgage rates above 6%.” 

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Unexpected Expensive Markets and Data Interpretation

Anonymous real estate blogger DadisFIRE was surprised that Montana and Idaho were considered so expensive. He elaborated, “It makes sense that states like Hawaii and California are very costly when ranking by square footage. Even Washington makes sense given Seattle’s real estate market. But I wouldn’t expect to see Montana or Idaho.”

He added, “It would be interesting to see this data normalized for acreage. A 1,000 square foot house sitting on a 5,000 acre ranch is not the same thing as a similar sized home on a quarter acre in Mississippi”

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A Few Words Of Caution

Looking at data points from state to state is exciting and informative but should only be used as a guide. Education, career paths, and job growth are likely the best metrics for deciding where one chooses to live over the price per square foot of a home. 

Andrew Karpiak, Real Estate Agent at Kamloops Living offers a word of caution. He explains, “Looking outside the top 10, it’s interesting to see the disparity In household income from state to state. New Mexico and New Jersey are great examples, with the price of a home in New Jersey almost double that of New Mexico, and yet you couldn’t pick two different states to live in.” 

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Final Thoughts

The journey to homeownership looks different across the United States. We’ve seen states where the average family can still afford a home, and others where prices soar beyond reach for many. These are just averages, you can find both affordable and expensive homes in every state.

The key to finding your dream home? Flexibility and research. Consider looking in different areas or thinking about what you really need in a home. A smaller house or a fixer-upper might be your ticket to homeownership in a pricier state.

With careful planning and a willingness to explore different options, you can find a place to call your own. The path might not be straight, but the destination, a home of your own, is worth the journey.

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AI was used for light editing, formatting, and readability. But a human (me!) wrote and edited this.