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
State affordability depends on home prices, property taxes, and income tax burden together — see homeownership rate by state for the share of residents who have successfully bought in each state. The down payment guide explains the minimum cash required across different loan types — a key constraint for buyers in high-cost states. For salary-specific affordability guidance, see how much house can I afford by salary.
WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.
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
