Buying a home in 2025 can feel out of reach with high prices and mortgage rates near 7%. The national median home price is around $428,000, but some states offer homes for much less. This guide lists the 10 cheapest states to buy a house, based on recent data from trusted sources like Zillow and Redfin. Whether you’re a first-time buyer or moving, these states help you save money. You’ll find key facts, tips, and answers to common questions to make your home search easier.
Why Affordable Housing Matters
Home prices in the US are high. In April 2025, the national median home price is about $428,000. Mortgage rates are near 7%. Many people want homes they can afford. Some states have much lower prices. This guide lists the 10 cheapest states to buy a house. It uses data from trusted sources like Zillow and Redfin. It also answers common questions to help you decide.
How We Chose These States
We studied top websites like HomeLight and Redfin. We looked at median home sale prices, cost of living, and property taxes. We checked data from April 2025 to ensure accuracy. We also reviewed Google’s “People Also Ask” and “Related Searches” for questions like:
- What is the cheapest state to buy a house?
- How do property taxes affect affordability?
- What are the pros and cons of living in these states?
Top 10 Cheapest States to Buy a House
These states have the lowest median home prices in 2025. Each includes key facts to help you choose.
1. West Virginia
- Median Home Price: $211,500
- Median Household Income: $55,217
- Cost of Living Index: 84.1 (16% below average)
- Property Tax Rate: 0.55% (Tax Foundation)
- Annual Property Tax: ~$1,163
- Overview: West Virginia has mountains and low costs. Cities like Charleston and Huntington have affordable homes. Jobs are in manufacturing and healthcare. Rural areas are cheaper but have fewer services.
- Top Cities: Huntington, Parkersburg, Morgantown
- Pros: Low taxes, natural beauty
- Cons: Limited jobs, fewer amenities
2. Ohio
- Median Home Price: $217,333
- Median Household Income: $66,990
- Cost of Living Index: 94.2
- Property Tax Rate: 1.36% (Tax-Rates.org)
- Annual Property Tax: ~$2,956
- Overview: Ohio has cities like Columbus and small towns like Youngstown. Jobs are in manufacturing and healthcare. Homes are affordable, but taxes are higher.
- Top Cities: Youngstown, Toledo, Canton
- Pros: Varied economy, affordable homes
- Cons: Higher taxes, cold winters
3. Iowa
- Median Home Price: $218,146
- Median Household Income: $70,571
- Cost of Living Index: 89.7
- Property Tax Rate: 1.29%
- Annual Property Tax: ~$2,814
- Overview: Iowa grows corn and soybeans. Des Moines has jobs and schools. Smaller towns like Waterloo are cheaper. The state is safe and family-friendly.
- Top Cities: Waterloo, Cedar Rapids, Dubuque
- Pros: Safe communities, low prices
- Cons: Cold winters, limited entertainment
4. Oklahoma
- Median Home Price: $222,667
- Median Household Income: $61,364
- Cost of Living Index: 85.7
- Property Tax Rate: 0.74%
- Annual Property Tax: ~$1,648
- Overview: Oklahoma has oil and agriculture. Oklahoma City and Tulsa are growing. Rural areas are affordable. Programs like Tulsa’s $10,000 grant help new residents.
- Top Cities: Lawton, Enid, Muskogee
- Pros: Low costs, relocation grants
- Cons: Tornado risks, limited transit
5. Louisiana
- Median Home Price: $223,617
- Median Household Income: $57,852
- Cost of Living Index: 92.2
- Property Tax Rate: 0.18%
- Annual Property Tax: ~$403
- Overview: Louisiana has music and culture. New Orleans is famous, but Shreveport is cheaper. Low taxes help, but flood insurance may cost extra.
- Top Cities: Shreveport, Monroe, Lake Charles
- Pros: Low taxes, vibrant culture
- Cons: Flood risks, high insurance
6. Arkansas
- Median Home Price: $235,192
- Median Household Income: $58,773
- Cost of Living Index: 88.7
- Property Tax Rate: 0.52%
- Annual Property Tax: ~$1,223
- Overview: Arkansas has forests and rivers. Little Rock and Fayetteville are growing. Jobs are in agriculture and retail. Homes are affordable.
- Top Cities: Pine Bluff, Jonesboro, Texarkana
- Pros: Natural beauty, low costs
- Cons: Hot summers, fewer services
7. Mississippi
- Median Home Price: $236,667
- Median Household Income: $52,985
- Cost of Living Index: 87.9
- Property Tax Rate: ~0.8%
- Annual Property Tax: ~$1,893
- Overview: Mississippi has blues music and history. Jackson and Gulfport have affordable homes. The economy is growing, but jobs may be limited.
- Top Cities: Jackson, Hattiesburg, Meridian
- Pros: Low costs, rich history
- Cons: Fewer jobs, high poverty
8. Alabama
- Median Home Price: $241,667
- Median Household Income: $59,609
- Cost of Living Index: 88.0
- Property Tax Rate: 0.33%
- Annual Property Tax: ~$798
- Overview: Alabama has jobs in aerospace. Birmingham and Huntsville are key cities. Low taxes and mild weather attract buyers.
- Top Cities: Gadsden, Decatur, Anniston
- Pros: Low taxes, growing cities
- Cons: Tornado risks, humid summers
9. Indiana
- Median Home Price: $245,905
- Median Household Income: $67,173
- Cost of Living Index: 90.5
- Property Tax Rate: 0.85%
- Annual Property Tax: ~$2,090
- Overview: Indiana has manufacturing jobs. Indianapolis is central, but Muncie is cheaper. The state is good for families.
- Top Cities: Muncie, Kokomo, Anderson
- Pros: Affordable homes, central location
- Cons: Cold winters, limited transit
10. Kentucky
- Median Home Price: $249,167
- Median Household Income: $60,183
- Cost of Living Index: 93.0
- Property Tax Rate: 0.72%
- Annual Property Tax: ~$1,794
- Overview: Kentucky has horse farms and bourbon. Louisville and Lexington have jobs. Rural areas are affordable.
- Top Cities: Owensboro, Paducah, Hopkinsville
- Pros: Affordable homes, mild weather
- Cons: Tornado risks, fewer tech jobs
Comparison Table
| State | Median Home Price | Household Income | Cost of Living | Property Tax Rate |
|---|---|---|---|---|
| West Virginia | $211,500 | $55,217 | 84.1 | 0.55% |
| Ohio | $217,333 | $66,990 | 94.2 | 1.36% |
| Iowa | $218,146 | $70,571 | 89.7 | 1.29% |
| Oklahoma | $222,667 | $61,364 | 85.7 | 0.74% |
| Louisiana | $223,617 | $57,852 | 92.2 | 0.18% |
| Arkansas | $235,192 | $58,773 | 88.7 | 0.52% |
| Mississippi | $236,667 | $52,985 | 87.9 | ~0.8% |
| Alabama | $241,667 | $59,609 | 88.0 | 0.33% |
| Indiana | $245,905 | $67,173 | 90.5 | 0.85% |
| Kentucky | $249,167 | $60,183 | 93.0 | 0.72% |
Key Factors to Consider
- Property Taxes: Low rates like Louisiana’s 0.18% save money. Higher rates like Ohio’s 1.36% add costs.
- Insurance: States like Louisiana need flood insurance. Check local rates.
- Jobs: Cities like Des Moines have more jobs. Rural areas may have fewer.
- Lifestyle: Look at schools, healthcare, and activities. Urban areas have more options.
- Incentives: Some cities offer cash to move, like Newton, IA (Newton Housing).
Tips for Buying a Home
- Check Local Prices: Use Zillow to find homes in your budget.
- Visit the Area: See if the city fits your needs.
- Hire an Agent: They know the market and find deals.
- Look at Loans: Some states have first-time buyer programs.
- Plan for Costs: Include taxes, insurance, and repairs in your budget.
Common Questions Answered
- What is the cheapest state to buy a house? West Virginia, with homes around $211,500.
- Are there hidden costs? Yes, like property taxes, insurance, and maintenance.
- Is it a good time to buy? Prices are high, but affordable states offer value.
- Which state has the lowest taxes? Louisiana, with a 0.18% property tax rate.
Final Thoughts
Buying a home in 2025 is tough, but states like West Virginia, Ohio, and Iowa make it easier. Low home prices and living costs help stretch your budget. Check taxes, jobs, and lifestyle before deciding. Use sites like Zillow to start your search. Talk to a local agent for the best deals. Your dream home is within reach in these affordable states.