Top 25 cheapest states to buy a house in 2022: As a real estate investor, you want to find properties where your investment dollar will go the furthest.

To help you do that, we decided to compile a list of the cheapest states to buy a house in America in 2022. We analyzed data from several sources:

Note: The following data is on a state level and will naturally vary by market within each state.

 

When Should I Refinance My Mortgage?1. West Virginia

West Virginia is home to just under 1.8 million people and is the 40th-most populated state in the U.S. Largest industries in West Virginia include tourism and natural resources. Charleston is the state capital and Huntington-Ashland is the largest metropolitan area.

  • Median home value: $122,342 (Zillow)
  • 1-year price change: 9.7% (Zillow)
  • 5-year price change: 23.9% (Zillow)
  • Average rent: $912 (GOBankingRates)
  • Cheapest cities to buy a house: Bluefield, Clarksburg, Beckley, Huntington (Yahoo)
  • Cost of living index: 91.1 (World Population Review)

 

2. Mississippi

Mississippi is the 34th-most populous state in the U.S. and home to nearly 3 million residents. Agriculture and manufacturing are two of the largest industries in the state. Jackson is the state capital and also the largest metro area in Mississippi.

  • Median home value: $151,190
  • 1-year price change: 12.6%
  • 5-year price change: 30.2%
  • Average rent: $989
  • Cheapest cities to buy a house: Jackson, Greenville, Meridian, Gulfport
  • Cost of living index: 86.1

 

3. Arkansas

Home to more than 3 million people, Arkansas is the 33rd-largest state in the U.S. Agriculture, manufacturing, and tourism help drive the economy in Arkansas. Little Rock is the capital city and also the biggest metropolitan area.

  • Median home value: $161,570
  • 1-year price change: 15.6%
  • 5-year price change: 38.1%
  • Average rent: $926
  • Cheapest cities to buy a house: Pine Bluff, Texarkana, North Little Rock, Fort Smith
  • Cost of living index: 86.9

 

4. Oklahoma

Oklahoma has a population of almost 4 million people and is the 28th-most populated state in the U.S. The diverse economy is powered by the agriculture, manufacturing, and natural resource sectors. Oklahoma City is the state capital and the biggest metro area.

  • Median home value: $162,409
  • 1-year price change: 14.6%
  • 5-year price change: 36.5%
  • Average rent: $1,015
  • Cheapest cities to buy a house: Muskogee, Lawton, Shawnee, Enid
  • Cost of living index: 87.0

 

5. Iowa

Home to more than 3.1 million people, Iowa is the 31st-most populous state in the U.S. The diverse economy is driven by the manufacturing, information and biotechnology, agriculture, and natural resource sectors. Des Moines is the state capital and Omaha Bluffs is the biggest metropolitan area.

  • Median home value: $176,499
  • 1-year price change: 11.4%
  • 5-year price change: 28.8%
  • Average rent: $1,021
  • Cheapest cities to buy a house: Waterloo, Sioux City, Davenport, Council Bluffs
  • Cost of living index: 90.1

 

6. Kentucky

Kentucky is the 26th-largest state in the U.S. with over 4.5 million people. Agriculture, manufacturing, healthcare, and natural resources help keep the economy strong. Frankfort is the state capital and Louisville is the largest metro area.

  • Median home value: $180,024
  • 1-year price change: 13.8%
  • 5-year price change: 41.7%
  • Average rent: $1,025
  • Cheapest cities to buy a house: Hopkinsville, Covington, Owensboro, Bowling Green
  • Cost of living index: 90.9

 

7. Alabama

Just over 5 million people reside in Alabama, making the state the 24th-largest in the U.S. The diverse economy of Alabama is driven in part by the agriculture, manufacturing, healthcare, and financial sectors. Montgomery is the state capital and Birmingham is the largest metro area.

  • Median home value: $183,101
  • 1-year price change: 16.0%
  • 5-year price change: 43.0%
  • Average rent: $1,060
  • Cheapest cities to buy a house: Gadsden, Birmingham, Montgomery, Phenix City
  • Cost of living index: 89.3

 

8. Kansas

Kansas is the 35th-most populated state in the U.S. and home to almost 3 million people. Agriculture, natural resources, and manufacturing help drive the Kansas economy. Topeka is the capital city and Kansas City is the biggest metropolitan area.

  • Median home value: $190,409
  • 1-year price change: 15.0%
  • 5-year price change: 40.0%
  • Average rent: $1,050
  • Cheapest cities to buy a house: Hutchinson, Kansas City, Topeka, Salina
  • Cost of living index: 89.0

 

9. Ohio

Another Midwest state on the list, Ohio is the 7th largest state in the U.S. and home to nearly 12 million residents. Manufacturing and financial services are the two largest sectors of the economy. Columbus is the state capital and Cincinnati is the largest metro area.

  • Median home value: $192,352
  • 1-year price change: 16.0%
  • 5-year price change: 50.2%
  • Average rent: $1,024
  • Cheapest cities to buy a house: Youngstown, Warren, Dayton, Marion
  • Cost of living index: 90.8

 

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10. Louisiana

Louisiana is the 25th-most populated state in the U.S. with almost 4.7 million residents. Agriculture, transportation, and tourism are three of the largest business sectors in Louisiana. Baton Rouge is the state capital and New Orleans is the largest metro area.

  • Median home value: $199,541
  • 1-year price change: 10.5%
  • 5-year price change: 20.9%
  • Average rent: $988
  • Cheapest cities to buy a house: Shreveport, Alexandria, Monroe, Marrero
  • Cost of living index: 93.9

 

11. Indiana

Indiana is home to nearly 6.8 million residents and is the 17th-largest state in the U.S. The economy is driven by the manufacturing, agriculture, and healthcare sectors. Indianapolis is the state capital and also the biggest metropolitan area.

  • Median home value: $200,056
  • 1-year price change: 17.5%
  • 5-year price change: 52.7%
  • Average rent: $1,052
  • Cheapest cities to buy a house: Gary, Anderson, Muncie, Richmond
  • Cost of living index: 90.0

 

12. Missouri

Missouri is the 19th-most populated state in the U.S. and home to more than 6.1 million people. Major industries include aerospace, transportation, manufacturing, and financial services. Jefferson City is the state capital and St. Louis is the largest metro area.

  • Median home value: $218,419
  • 1-year price change: 16.7%
  • 5-year price change: 54.9%
  • Average rent: $1,086
  • Cheapest cities to buy a house: St. Joseph, Florissant, Joplin, Independence
  • Cost of living index: 87.1

 

13. Michigan

Michigan is home to over 10 million residents and the 10th-most populated state in the U.S. The state’s diverse economy is driven by the manufacturing, natural resources, defense, and information technology sectors. Lansing is the state capital and Detroit is the biggest metropolitan area.

  • Median home value: $218,419
  • 1-year price change: 16.7%
  • 5-year price change: 54.9%
  • Average rent: $1,140
  • Cheapest cities to buy a house: Flint, Detroit, Bay City, Saginaw
  • Cost of living index: 88.9

 

14. Nebraska

With nearly 2.0 million residents, Nebraska is the 37th-largest state in the U.S. Agriculture, transportation, manufacturing, and information technology help drive the state’s economy. Lincoln is the state capital and Omaha-Council Bluffs is the biggest metropolitan area.

  • Median home value: $218,939
  • 1-year price change: 14.0%
  • 5-year price change: 41.0%
  • Average rent: $1,103
  • Cheapest cities to buy a house: Beatrice, Lexington, Hastings, Scottsbluff
  • Cost of living index: 90.8

 

15. Wisconsin

Nearly 6 million people reside in Wisconsin, making the state the 20th-largest in the U.S. Major industries such as agriculture, manufacturing, and consumer goods drive the economy. Madison is the state capital and Milwaukee is the largest metropolitan area. 

  • Median home value: $242,541
  • 1-year price change: 14.7%
  • 5-year price change: 47.9%
  • Average rent: $1,133
  • Cheapest cities to buy a house: Beloit, Manitowoc, Racine, Fond du Lac
  • Cost of living index: 97.3

 

16. Illinois

About 12.8 million people live in Illinois, making the state the 6th-largest in the U.S. Agriculture, manufacturing, finance and investment, and the service sectors keep the diverse economy growing. Springfield is the capital city and Chicago is the largest metropolitan area.

  • Median home value: $244,494
  • 1-year price change: 13.5%
  • 5-year price change: 30.1%
  • Average rent: $1,240
  • Cheapest cities to buy a house: Danville, Galesburg, Decatur, Peoria
  • Cost of living index: 94.5

Top 25 cheapest states to buy a house in 2022

17. Pennsylvania

Home to over 13 million residents, Pennsylvania is the 5th-largest state in the U.S. Finance and agriculture are the two largest industries in the state. Harrisburg is the capital city and Philadelphia/Delaware Valley is the largest metro area.

  • Median home value: $246,873
  • 1-year price change: 15.3%
  • 5-year price change: 41.8%
  • Average rent: $1,154
  • Cheapest cities to buy a house: Harrisburg, Wilkes-Barre, Altoona, Scranton
  • Cost of living index: 101.7

 

18. South Carolina

South Carolina is the 23rd-most populated state in the U.S. and home to over 5.1 million people. Agriculture, manufacturing, and healthcare are three of the largest industries in South Carolina. Columbia is the state capital and Greenville-Anderson is the largest metro area.

  • Median home value: $252,309
  • 1-year price change: 20.3%
  • 5-year price change: 48.4%
  • Average rent: $1,115
  • Cheapest cities to buy a house: Sumter, Spartanburg, Florence, Columbia
  • Cost of living index: 95.9

 

19. North Dakota

The population of North Dakota is about 780,000 making it the 3rd-smallest state. Agriculture is the largest industry in North Dakota, followed by petroleum, food processing, and technology. Bismarck is the state capital and Fargo is the largest metropolitan area.

  • Median home value: $258,101
  • 1-year price change: 8.5%
  • 5-year price change: 13.2%
  • Average rent: $1,190
  • Cheapest cities to buy a house: Jamestown, Minot, Grand Forks, Fargo
  • Cost of living index: 98.8

 

20. Tennessee

Nearly 7 million people live in Tennessee, making the state the 16th-largest in the U.S. Major industries include automotive manufacturing, agriculture and textiles, and energy. Nashville is the capital city and also the biggest metropolitan area.

  • Median home value: $258,586
  • 1-year price change: 22.1%
  • 5-year price change: 60.6%
  • Average rent: $1,121
  • Cheapest cities to buy a house: Memphis, Jackson, Kingsport, Johnson City
  • Cost of living index: 88.7

 

21. New Mexico

New Mexico is the 36th-most populated state in the U.S. and home to over 2.1 million people. About one-half of its economy is based on the service sector, while much of the remainder is centered on extractive industries (mining and oil production). Santa Fe is the state capital and Albuquerque is the biggest metro area.

  • Median home value: $263,685
  • 1-year price change: 18.6%
  • 5-year price change: 47.3%
  • Average rent: $1,134
  • Cheapest cities to buy a house: Roswell, Alamogordo, Farmington, Clovis
  • Cost of living index: 87.5

 

22. South Dakota

With just under 890,000 residents, South Dakota is the 4th-smallest state in the U.S. Agriculture and service sectors such as retail, finance, and healthcare drive the economy. Pierre is the state capital and Sioux Falls is the largest metro area.

  • Median home value: $264,362
  • 1-year price change: 16.9%
  • 5-year price change: 40.6%
  • Average rent: $979
  • Cheapest cities to buy a house: Huron, Mitchell, Aberdeen, Vermillion
  • Cost of living index: 99.8

 

23. Texas

Texas is the 2nd-largest state by population in the U.S. with nearly 29.2 million residents. Major industries in Texas include agriculture and mining, energy and natural resources, and technology. Austin is the state capital and Dallas-Fort Worth is the largest metro area.

  • Median home value: $271,172
  • 1-year price change: 20.9%
  • 5-year price change: 49.0%
  • Average rent: $1,289
  • Cheapest cities to buy a house: Port Arthur, Wichita Falls, Brownsville, Pharr
  • Cost of living index: 91.5

 

24. Georgia

Georgia is the 8th-most populated state in the U.S. and home to more than 10.7 million people. The diverse economy is driven by the agriculture and mining, industry and logistics, and defense sectors. Atlanta is the state capital and also the largest metropolitan region in Georgia.

  • Median home value: $275,116
  • 1-year price change: 23.5%
  • 5-year price change: 62.7%
  • Average rent: $1,179
  • Cheapest cities to buy a house: Albany, Macron, Columbus, Augusta
  • Cost of living index: 89.2

 

25. North Carolina

North Carolina is the 9th-most populated state in the U.S. and home to over 10.4 million people. Agriculture, textiles and manufacturing, and high technology help drive the state’s diverse economy. Raleigh is the state capital and Charlotte is the biggest metro area.

  • Median home value: $277,795
  • 1-year price change: 23.6%
  • 5-year price change: 57.8%
  • Average rent: $1,140
  • Cheapest cities to buy a house: Rocky Mount, Fayetteville, Wilson, Burlington
  • Cost of living index: 94.9

 

Macro trends to watch in 2022

The housing market in 2021 was characterized by low interest rates with more demand than supply. Will next year be more of the same, or something completely different?

While there’s no such thing as a crystal ball, there are several macro trends that investors can monitor to help predict how the housing market will perform in 2022:

  • Continued migration of people to the suburbs and smaller secondary and tertiary markets, as the COVID-19 pandemic normalized work-from-home.
  • Monetary policy and the effect on mortgage interest rates.
  • Economic growth and gross domestic product.
  • Consumer confidence and changes in the job market.
  • Average median home price and affordability.
  • Existing and new home sales.
  • Homeownership vs. renter-occupied rate.
  • Single-family housing starts and overall supply of housing.
  • Markets that make sense for real estate investing.

Source: https://learn.roofstock.com/


Are you ready to buy your new house?…Let us help you!

 

 

Call now:(617) 201-9188 Ana Roque |209 West Central Street, Natick, MA  

Ana Roque is a Brazilian Licensed Realtor at Re-Connect, LLC with 16+ years of experience in the Real Estate industry.

Ana speaks 3 languages (Portuguese, English, Spanish), Wife, Stepmom, Journalist, Event Director for the National Association of Hispanic Real Estate Professionals (NAHREP) Central MA Chapter.

   

 

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