The best state to buy a house depends on more than just home prices — property taxes, insurance, income, and job markets all matter. Here’s a comprehensive comparison.
Most Affordable States to Buy a Home
Ranked by price-to-income ratio (lower is better):
| Rank | State | Median Home Price | Median Income | Price-to-Income | Monthly Payment (20% down, 6.5%) |
|---|---|---|---|---|---|
| 1 | West Virginia | $145,000 | $52,000 | 2.8 | $733 |
| 2 | Mississippi | $175,000 | $52,500 | 3.3 | $885 |
| 3 | Iowa | $200,000 | $68,000 | 2.9 | $1,011 |
| 4 | Oklahoma | $195,000 | $60,000 | 3.3 | $986 |
| 5 | Arkansas | $185,000 | $55,000 | 3.4 | $935 |
| 6 | Indiana | $215,000 | $63,000 | 3.4 | $1,087 |
| 7 | Kansas | $210,000 | $66,000 | 3.2 | $1,062 |
| 8 | Ohio | $220,000 | $62,000 | 3.5 | $1,112 |
| 9 | Kentucky | $195,000 | $57,000 | 3.4 | $986 |
| 10 | Alabama | $205,000 | $56,000 | 3.7 | $1,036 |
Least Affordable States
| Rank | State | Median Home Price | Median Income | Price-to-Income |
|---|---|---|---|---|
| 50 | Hawaii | $850,000 | $88,000 | 9.7 |
| 49 | California | $780,000 | $85,000 | 9.2 |
| 48 | Massachusetts | $600,000 | $90,000 | 6.7 |
| 47 | Colorado | $550,000 | $82,000 | 6.7 |
| 46 | Washington | $580,000 | $84,000 | 6.9 |
| 45 | Oregon | $480,000 | $72,000 | 6.7 |
| 44 | New York | $420,000 | $75,000 | 5.6 |
| 43 | New Jersey | $480,000 | $87,000 | 5.5 |
| 42 | Utah | $480,000 | $78,000 | 6.2 |
| 41 | Connecticut | $395,000 | $80,000 | 4.9 |
Total Monthly Housing Cost by State
Including mortgage payment, property tax, and homeowner’s insurance on the median-priced home (20% down, 6.5% rate):
| State | Mortgage Payment | Property Tax/Mo | Insurance/Mo | Total/Mo |
|---|---|---|---|---|
| West Virginia | $733 | $55 | $85 | $873 |
| Mississippi | $885 | $85 | $145 | $1,115 |
| Arkansas | $935 | $60 | $140 | $1,135 |
| Oklahoma | $986 | $90 | $180 | $1,256 |
| Indiana | $1,087 | $90 | $95 | $1,272 |
| Ohio | $1,112 | $135 | $85 | $1,332 |
| Iowa | $1,011 | $125 | $105 | $1,241 |
| Kentucky | $986 | $75 | $130 | $1,191 |
| Alabama | $1,036 | $40 | $155 | $1,231 |
| Kansas | $1,062 | $115 | $160 | $1,337 |
For comparison, expensive states:
| State | Mortgage Payment | Property Tax/Mo | Insurance/Mo | Total/Mo |
|---|---|---|---|---|
| California | $3,943 | $650 | $130 | $4,723 |
| Hawaii | $4,296 | $205 | $90 | $4,591 |
| Massachusetts | $3,033 | $625 | $120 | $3,778 |
| New Jersey | $2,427 | $750 | $105 | $3,282 |
| New York | $2,123 | $500 | $115 | $2,738 |
Property Tax Rates by State
| Lowest Property Tax States | Effective Rate | Annual Tax on $300K Home |
|---|---|---|
| Hawaii | 0.29% | $870 |
| Alabama | 0.40% | $1,200 |
| Colorado | 0.51% | $1,530 |
| Louisiana | 0.55% | $1,650 |
| South Carolina | 0.57% | $1,710 |
| Highest Property Tax States | Effective Rate | Annual Tax on $300K Home |
|---|---|---|
| New Jersey | 2.23% | $6,690 |
| Illinois | 2.08% | $6,240 |
| New Hampshire | 1.93% | $5,790 |
| Connecticut | 1.79% | $5,370 |
| Vermont | 1.73% | $5,190 |
No State Income Tax States
| State | Median Home Price | Property Tax Rate | Overall Affordability |
|---|---|---|---|
| Texas | $290,000 | 1.60% (high) | Moderate |
| Florida | $380,000 | 0.86% | Moderate |
| Tennessee | $290,000 | 0.64% | Good |
| Nevada | $415,000 | 0.55% | Moderate |
| Wyoming | $300,000 | 0.56% | Good |
| South Dakota | $280,000 | 1.14% | Good |
| Washington | $580,000 | 0.87% | Poor |
| Alaska | $330,000 | 1.04% | Moderate |
| New Hampshire | $430,000 | 1.93% (very high) | Poor |
No income tax saves money but some states compensate with higher property or sales taxes.
Best States for First-Time Buyers
| State | Median Price | FHA Min Down (3.5%) | First-Time Buyer Programs |
|---|---|---|---|
| West Virginia | $145,000 | $5,075 | WVHDF programs, down payment assistance |
| Iowa | $200,000 | $7,000 | IFA FirstHome programs |
| Indiana | $215,000 | $7,525 | IHCDA programs, down payment assistance |
| Ohio | $220,000 | $7,700 | OHFA programs, MyHelloHome |
| Kentucky | $195,000 | $6,825 | KHC programs, down payment assistance |
| Arkansas | $185,000 | $6,475 | ADFA programs |
| Mississippi | $175,000 | $6,125 | MHC programs |
Home Price Appreciation (5-Year)
| Fastest-Growing States | 5-Year Appreciation | Current Median |
|---|---|---|
| Montana | +55% | $430,000 |
| Idaho | +50% | $420,000 |
| Maine | +48% | $350,000 |
| New Hampshire | +45% | $430,000 |
| Florida | +42% | $380,000 |
| Arizona | +40% | $400,000 |
| South Carolina | +38% | $300,000 |
| Tennessee | +37% | $290,000 |
| Slowest-Growing States | 5-Year Appreciation | Current Median |
|---|---|---|
| Louisiana | +8% | $195,000 |
| North Dakota | +10% | $240,000 |
| Illinois | +12% | $245,000 |
| West Virginia | +12% | $145,000 |
| Kansas | +14% | $210,000 |
Scoring the Best States (Overall)
Composite score based on affordability, property taxes, insurance, job market, and quality of life:
| State | Affordability | Taxes | Insurance | Job Market | Overall Score |
|---|---|---|---|---|---|
| Iowa | ★★★★★ | ★★★ | ★★★★ | ★★★★ | A |
| Indiana | ★★★★★ | ★★★★ | ★★★★★ | ★★★★ | A |
| Tennessee | ★★★★ | ★★★★★ | ★★★ | ★★★★ | A |
| Ohio | ★★★★ | ★★★ | ★★★★★ | ★★★★ | A- |
| North Carolina | ★★★ | ★★★★ | ★★★★ | ★★★★★ | A- |
| Georgia | ★★★ | ★★★★ | ★★★★ | ★★★★★ | B+ |
| Texas | ★★★ | ★★ | ★★★ | ★★★★★ | B+ |
| Florida | ★★★ | ★★★★ | ★★ | ★★★★ | B |
| South Carolina | ★★★★ | ★★★★★ | ★★★ | ★★★ | B+ |
| Alabama | ★★★★★ | ★★★★★ | ★★★ | ★★★ | B+ |
Key Takeaways
- West Virginia is the cheapest state with median home prices around $145,000
- Price-to-income ratio matters more than price alone — Iowa and Kansas score well
- No-income-tax states like Tennessee and Florida are attractive but watch property taxes
- New Jersey has the highest property taxes — 2.23% adds $6,690/year on a $300K home
- Total housing cost varies dramatically — $873/month in WV vs $4,700+/month in CA
- First-time buyer programs with down payment assistance exist in most affordable states
- Fast-appreciating states (Montana, Idaho, Maine) may offer equity growth potential
- Consider job market alongside housing costs — low prices don’t help if jobs are scarce
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy