Housing affordability remains a major challenge for homebuyers. Home prices have risen for nearly two years, mortgage rates are hovering around 7%, and housing supply is just inching upwards. All of this follows a very difficult 2024, which saw the fewest home sales in nearly 30 years.
As a result, many buyers, especially those from expensive coastal markets, are searching for more affordable places to live. During the pandemic, many people chose the Sun Belt, primarily cities in Florida, Arizona, and Texas. However, as migration patterns shift and the housing boom fades, people have begun looking elsewhere for homes they can afford – notably in the Rust Belt.
But where are homes the most affordable? What are the cheapest states to buy a house? If you’re in the market for a house and looking for an affordable place to live, this is the article for you.
U.S. market at a glance
| Median sale price:
$428,000 |
Median household income:
$75,538 |
Median monthly housing payment:
$1,902 |
The 10 cheapest states to buy a house
1. Iowa
- Median sale price: $227,500
- Median household income: $73,147
- Median monthly housing payment: $1,494
Iowa is the cheapest state to buy a house in the U.S. Low house prices, paired with relatively high household incomes and modest taxes, make Iowa an affordable place to live and buy a home.
Iowa is known for its industry and agriculture (more than 85% of the land is farmed), but it’s also home to a diverse range of amenities and cultures. In particular, it’s a great place for those looking for an urban lifestyle just minutes from forests, rivers, and prairies. Des Moines is the state’s capital and largest city.
If you need a bit more convincing, a couple of cities in Iowa will even pay you to move there. Newton, for example, located 35 miles east of the state capital Des Moines, offers cash incentives and a welcome package for qualifying homebuyers. Homes in Des Moines are very affordable, too, sitting at…