Buying a house is expensive, but a recent study reveals that the most affordable option is in the Midwest.
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Studio City realtors analyzed Zillow’s 2022 data on the median sale price of homes per state to find the cheapest state to buy a house.
Their finding shows that out of the 50 states, the four cheapest states to buy a house are Illinois, Ohio, Oklahoma, and Michigan. The housing costs in these locations range from $133,750 to $179,125.
Tony Mariotti, a Studio City realtor, says that the study is helpful for first-time home buyers or those looking to relocate.
According to recent data, Alabama ranks as one of the most affordable states in the US to purchase a home. In 2022, the median sale price for houses in Alabama was $200,000, and the household-to-income sale ratio was 3.51.
9. New York
The area surrounding New York City inflates the overall median price of New York, but the median is still under $200K at $192,500.
8. West Virginia
West Virginia comes in 8th with a median house price of $191,500.
While there is only a $1000 price difference between West Virginia and New York, the median yearly income in West Virginia is approximately 35.7% less than in New York, resulting in a household income-to-sale ratio of 4.09.
According to recent data, Arkansas ranks seventh in terms of median sale prices for houses in 2022. The state’s median sale price is approximately 2.15% higher than that of Indiana. The median sale price for a house in Arkansas is $188,713, while the median household income is $50,784 per year. This results in a household income to sale ratio of 3.72.
According to recent statistics, Indiana ranks sixth in terms of affordable housing. The median sale price for houses in the state in 2022 was $184,725, with a household income-to-sale ratio of 2.86. Among Indiana’s cities, Richmond offers the most affordable housing, with a median sale price of $118,850. In contrast, Bloomington is the most expensive city to buy a house, with a median sale price of approximately $266,000.
Missouri ranked 5th with the median home costing $182,100.
In the fourth spot is Michigan at $179,125, which costs $45,375 more than Illinois.
The upper midwestern state, which is also one the best states to raise kids, has a higher household income at $64,488 versus Oklahoma’s $60,096 and Ohio’s $62,689.
The cheapest city is Alma, which clocks at $136,250, and the most expensive is Traverse City at $347,450.
Compared to the most expensive cities of the four cheapest states, Michigan’s Traverse City takes the second spot, with Ohio’s Wooster in the first place.
The third cheapest state where you can get a house is Oklahoma. Situated in the south-central region of the U.S., The Sooners State’s houses cost a median sale of $175,063 or $20,063 more than Ohio.
The state’s household income versus Ohio is close, with just a $2,593 difference. Still, the cheapest house in Oklahoma is in Ponca City, where housing costs $126,000.
The state’s capital, Oklahoma City, is the most expensive location at $236,000, which is $119,000 cheaper than Ohio’s most expensive city Wooster.
Despite the lower household income in Ohio, $16,564 less than in Illinois, to be more precise, The Buckeye State snags second place for the most affordable state to buy a house at $155,000.
Ohio’s cheapest and most expensive cities are Portsmouth and Wooster, where the median sale is at $120,000 and $355,000, respectively.
Taking the crown for the cheapest state to buy a house is Illinois, where the median sale cost is $133,750. It is, however, worth noting that The Prairie State has the highest household income of $79,253. This gives Illinoisans more purchasing power, clocking in a sale price ratio of 1.69
The cheapest city is Galesburg at $90,000, and the most expensive is Chicago at $282,750.