The housing market in the United States is a roller coaster, full of ups and downs. Currently, some areas are experiencing record highs in home prices, so which state is the cheapest and most affordable option for purchasing a house?
The cheapest state to buy a house in is Mississippi. On average, a home in Mississippi is under $115,000. In addition to the low cost of purchasing a home in Mississippi, property taxes are also less than in other places, at just under 1%.
If you were wondering what is the cheapest state to buy a house in, whether you are looking to buy a house or are just curious, you have come to the right place. Keep reading the sections below to find information on some of the cheapest states to buy a house in, including the cheapest state to buy a house, Mississippi.
What is the Cheapest State to Buy a House?
There are many states where buying a house can be quite cheap when compared to some of the more expensive states like California and New York. However, you need to keep in mind that if you decide to buy a house in a different state because it is cheap, you will probably have to give up some of the things you are used to in your state.
For example, the cheapest state you can buy a house in is Mississippi. The median house price is about $114,000. This is less than half of the median price for a house in the U.S, which is about $247,000.
For those of you that were wondering about taxes, the property tax rates in Mississippi are below 1%, which means that if you paid $114,000 for a house, you would pay around $900 in property taxes every year.
However, some of you that grew up near big cities like Chicago, New York, Miami, LA, or Texas might not want to abandon the lifestyle you are used to having to move to Mississippi in order to be a homeowner.
Why It’s So Cheap to Buy a House in Mississippi
Now that you know how cheap it is to buy a house in Mississippi, you might be wondering why it is so cheap to buy a house there, to begin with. This is a natural question to ask yourself. It is common to wonder if this is too good to be true.
The main reason it’s so cheap to buy a house in Mississippi is that there’s so much land available. This makes the land prices affordable, as well as the price of home buying.
When you look at some of the most expensive states to own a house like California, one of the main factors that raise the price of houses is the lack of land.
This is not the case in Mississippi, which is part of the reason why buying a house here can be so cheap. For those of you that aren’t looking to buy a home just yet, Mississippi is also one of the cheapest states to rent a house in.
Other States Where it is Cheap to Buy a House
There are several other states where buying a house can be cheap. Although it won’t be as cheap as Mississippi, there are plenty of other cheap options for those of you looking to buy a house in a state other than Mississippi.
In addition to Mississippi having cheap houses, both West Virginia and Arkansas have similar housing costs. Purchasing a home in either West Virginia or Arkansas is similar in price to Mississippi, ranging from around $115,000 – $123,000.
The second cheapest state to buy a house in the U.S is West Virginia.
West Virginia is just slightly more expensive than Mississippi, with its median cost of buying a house sitting at about $115,000. However, the property tax rate in West Virginia is even lower than the one in Mississippi.
This means that you will only pay about $600 a year on property tax rates each year if you buy a house in West Virginia for $115,000. This might make you consider moving to West Virginia over Mississippi since you will end up paying less money over time due to the lower property tax rates.
The third cheapest state you can buy a house in is Arkansas.
Arkansas has a median house price of about $123,000. This is slightly more expensive than the previous two states, but it is still significantly cheaper when compared to the median price of buying a house in the U.S
The property tax rate you can expect to pay if you buy a home in Arkansas is about .6% which is the tenth lowest property tax rate in the country. This tax rate is slightly higher than West Virginia’s but lower than Mississippi’s.
If you were to buy a house in Arkansas for the median price of $123,000, you would expect to pay around $700 a year on property tax rates.
Now that you know what some of the cheapest states to buy a house in, you can make a decision on whether or not you would like to buy a home there. There are many factors that can impact your decision to move to a different state, but at least being aware of how much you can expect to pay for a house is always good.