Cheapest States to Buy a House
Analysis of Median Sale Prices in 2025
Last updated: April 2025
Author: PropertySharkStaff
Buying a house is likely one of the most significant financial decisions most people will make in their lifetime. While mortgage rates have begun to tick down, rising median sale prices in recent years have made buyers much more cost-conscious.
For this reason, finding one of the cheapest states to buy a house can translate into significant savings for prospective first-time homebuyers — as well as those looking for a better property at a lower price.
Explore the interactive map below for a closer look at the cheapest states to buy a house in and an overall snapshot of median home sale prices across all U.S. states, plus Washington, D.C.
What Is the #1 Cheapest State to Buy a House?
Alabama is the most affordable state to become a homeowner in with a median sale price of $220,000, more than $200,000 below the national median. Although Alabama workers also earn less than the national average salary — a common trait among the cheapest entries on our list — the state’s purchasing power parity and the potential advantages of remote work can act in favor of homebuyers eyeing the state.
Specifically, smaller cities in the state — such as Athens and Foley — have experienced the fastest population growth in recent years, although larger ones (like Huntsville and Tuscaloosa) also have a net inflow of residents. Even so, despite a 0.7% statewide population growth per year according to the latest U.S. Census data, Alabama remains the cheapest state to buy a house in.
Top 10 Most Affordable States to Buy a House
States featuring low home prices are primarily concentrated in the Midwest and the South, with metro areas in both regions experiencing considerable population influxes from coastal gateway cities reaching record home prices.
Plus, many of the states with the lowest home prices have the added advantage of lower real estate transfer taxes as well. In fact, Louisiana, Missouri and Indiana do not charge a state-level real estate transfer tax and are also among the 10 cheapest states to buy a house in 2025. By comparison, real estate transfer taxes in New York start at 0.4%, translating to a $2,000 tax bill for a $500,000 home, but can reach as high as 4.45% for pricey NYC homes.
Read on to find out which other locations rank among the most affordable states to buy a house in after #1 Alabama.
#2: Iowa
The median home price in Iowa stands at $230,000 in 2025, making it the Midwest’s most affordable state and the runner-up at a national level. It’s worth noting that this figure is also $20,000 lower compared to neighboring Missouri, demonstrating the Hawkeye State’s potential for money-saving home purchases in the region.
#3: Oklahoma
With a median price of $232,000 in 2025, Oklahoma is the third cheapest state to buy a house. That makes it more affordable than other South-Central states, such as Louisiana and Arkansas. A less-expensive home market is just one of the factors contributing to a steady influx of residents into the Oklahoma City and Tulsa metros.
#4: Ohio
At #4, Ohio features a median home sale price of $240,000, making it the cheapest in the Great Lakes region and the fourth-most affordable nationwide. In particular, Columbus and Cleveland consistently rank among the Midwest’s fastest-growing cities, and one of the most commonly cited reasons for relocations is the relative accessibility of their respective housing markets.
#5: West Virginia
West Virginia is the fifth cheapest state to buy a house in 2025 with a median price of $246,000, narrowly exceeding that of neighboring Ohio. WV Ascend — a partnership between West Virginia University and West Virginia Tourism — is even offering remote workers $12,000 if they relocate to the Mountain State, providing further incentive besides the advantageous housing market.
#6: Louisiana
With a median home price of $247,000, Louisiana ranks as the sixth cheapest state to buy a house. It’s also one of just three entries in the top 10 to feature a 0% real estate transfer tax, supplementing the state’s affordability.
#7: Missouri
State-level estate transfer taxes in Missouri are also 0%, making for another benefit besides the state’s median home sale price of $250,000. This figure makes it the seventh most affordable state in the U.S. and $30,000 cheaper than Kansas.
#8: Arkansas & Michigan (Tie)
Up next, Arkansas and Michigan are tied with a median price of $256,000. Besides geography and major industries, the states are also set apart by their respective real estate transfer tax rates — 0.33% in the case of Arkansas and 0.75% in Michigan.
#9: Indiana
In ninth place, Indiana’s median home price stands at $260,000. Here, booming real estate markets like Fort Wayne and Indianapolis slightly drove up the state’s median, which remains among the nation’s lowest nonetheless.
#10: Kentucky
The Bluegrass State closed out the top 10 list of cheapest states to buy a house with a median home price of $262,000, narrowly exceeding that of neighboring Indiana.
Home prices remain a key consideration for prospective buyers. The states on this list stand out with lower median home prices, making homeownership more attainable. Consequently, first-time buyers or those open to relocate for a better deal don’t have to stretch their budgets too thin.
See the table below for a recap of the top 10 most accessible states to become a homeowner, as well as a full list of the median sale prices across all U.S. states, plus Washington, D.C.
Methodology
Data concerning median sale prices was calculated based on residential property sales closed in December 2024. PropertyShark data was supplemented with data from the National Association of Realtors (NAR) and Redfin to ensure complete coverage across all U.S. states.
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