Most Affordable States For Home Buyers To Purchase Home

This Article Is About The Most Affordable States For Home Buyers To Purchase Home

Remote work has changed where people can realistically live—and it’s reshaping homebuying decisions across the U.S. Instead of being tied to one city for work, many employees can now keep their job while shopping for a home in a different state with a lower cost of living.

For buyers in expensive metro areas like Southern California, the difference can be dramatic. The same monthly housing budget that only buys a smaller home in a high-cost market may stretch much further in a more affordable state—sometimes meaning a larger home, a newer property, or a lower payment.

This guide focuses on the most affordable states for home buyers in 2025, based primarily on typical home values and overall affordability factors (like housing costs and property taxes). Keep in mind: “affordable” can mean different things depending on your situation. Some buyers are primarily concerned with the lowest home prices. In contrast, others prioritize low property taxes, cheaper insurance, or strong job markets.

Below, we’ll break down the states that stand out for affordability, explain what’s happening with U.S. home prices in 2025, and share practical mortgage tips for anyone planning to buy a home after relocating—especially remote workers, first-time homebuyers, and families trying to get the most home for their money.

Most Affordable States For Home Buyers To Purchase Home

In 2025, West Virginia takes the crown for the most affordable houses, with a median home value of around $147,000. It’s an excellent spot for those who love nature and want to keep living costs low, while also enjoying outdoor activities and beautiful views. Other affordable states to consider are Mississippi, Arkansas, Oklahoma, and Indiana. Mississippi has a median home value of approximately $173,650, while Arkansas and Oklahoma are slightly higher, at around $190,500 and $193,700, respectively.

These places not only have lower home prices but also relatively low property taxes, making them budget-friendly. If you’re looking for even more options, states like Kentucky, Kansas, and Alabama also have competitive housing markets, with median values ranging from $207,600 to $218,420. These areas blend urban and rural vibes, making them perfect for homebuyers looking to stretch their budget.

Will US House Prices Go Down in 2025?

The outlook for U.S. house prices in 2025 presents a mixed landscape, where trends can vary significantly by location. Here’s a more precise breakdown:

1. National Trends: While there has been a recent slight dip in national home prices due to lower mortgage rates and rising incomes, prices are expected to rise slightly overall, with an anticipated increase of about 3.5% from March 2025 to March 2026.

2. Regional Variations:

• Coastal Areas: Some regions, particularly along the coast in Florida, may experience a decline in home prices. This is attributed to factors such as a significant price surge during the pandemic, increasing climate risks, and higher insurance costs.
• Affordable Cities: On the other hand, more affordable cities like Albany, NY, and Grand Rapids, MI, are projected to see price increases due to their more stable economic conditions and demand for housing.

3. Most Affordable States: For those looking for the best deals, West Virginia stands out as the most affordable state to buy a home, with a median home value of around $145,000. Other states with relatively low home prices include Mississippi, Arkansas, Oklahoma, and Indiana.

Home prices are going up or down, really, depending on what’s happening in the local market. In general, while some areas may continue to see price declines from past highs, others are expected to stabilize or experience modest increases. Overall affordability will largely hinge on the unique economic circumstances of each region.

Which State is the Cheapest to Live In?

In 2025, Mississippi will be recognized as the cheapest state to live in, boasting the lowest cost of living index in the United States. The overall affordability of Mississippi is due to low housing costs, with a median home price significantly below the national average, along with low costs for groceries, healthcare, and transportation​.

Other states with a notably low cost of living include:

1. Kansas: Kansas offers affordable housing and low living costs, making it the second most affordable state. The median home price is around $198,199, and the overall cost of living index is among the lowest in the nation​.
2. Missouri: Missouri has a cost of living index of 89.9, among the most budget-friendly states. The housing costs are about 20% below the national average, making it a great choice for affordable housing.
3. Oklahoma: Oklahoma combines low housing costs and overall affordability with a cost of living index of 87.9. The median home price is around $171,057, and the state also offers low costs for groceries and healthcare​​.
4. Alabama: Alabama features a cost of living index of 88.2 and is known for its low housing costs, with the average price for a single-family home being $194,695. The state also has low costs for health and transportation​​.

The following states offer cost-effective housing choices, which makes them appealing places to live for people and families who want to handle their finances effectively in 2025.

Many Home Buyers Are Fleeing High-Taxed States

Many New Yorkers are leaving for states with lower taxes and home prices. Numerous states with higher-than-average home prices and high living costs drive home buyers to relocate to more affordable states. Over the past decade, New York lost 1.38 million taxpayers, while California saw one million residents leave.

California’s median home prices are now $634,400, compared to the national median of $365,500. This significant disparity has prompted many Californians to move to states like Texas, Georgia, Alabama, Mississippi, and Florida.

People in high-tax states are increasingly searching for the most affordable states for home buyers because they are priced out of their local housing markets. America’s Most Affordable States For Home Buyers will be discussed by us. When considering the most affordable states for home buyers, location is key. Those who can work remotely might find relocating to a state with affordable home prices and a low cost of living advantageous.

Indiana Is One Of The Most Affordable States For Home Buyers

Indiana has become a popular destination for many Illinois home buyers seeking more affordable housing and lower property taxes. In 2025, the average median home price in Indiana is $365,700. Many Illinois residents are moving to Indiana due to its favorable housing market and cost-effective living conditions. Bloomington stands out with the highest median home prices in the state.

For those looking for the most affordable state for home buyers, Indiana provides an excellent blend of affordability and quality of life, making it a top choice. This trend highlights a growing preference among home buyers to relocate to states where they can get more value for their money, emphasizing the importance of considering various factors such as property taxes and living expenses. 

Floridians Migrating To Georgia Due To Affordable Housing

Georgia is also recognized as one of the most affordable states for home buyers in 2025. With median home prices at $344,500, it attracts many Floridians who are priced out of their local housing market and seek more value by moving north. Georgia is recognized for its plentiful peach and peanut farms. It has one of the most active real estate markets in the United States. The state’s affordability and vibrant real estate market make it a prime destination for home buyers from various regions looking to maximize their investment.

The Great State Of Alabama

Alabama is becoming increasingly attractive to home buyers, especially those seeking affordable options. In 2025, many individuals from Texas, unable to cope with the rising home prices in the state, are moving to Alabama. Alabama presents an appealing choice for those looking to purchase their perfect home, with a median home value of $339,000 and average property taxes amounting to $3,800.

Additionally, Alabama’s cost of living is among the lowest in the country, making it one of the most affordable states for home buyers.

The combination of affordable housing, low property taxes, and a generally low cost of living makes Alabama a prime choice for home buyers looking to maximize their investment while minimizing expenses. As home prices continue to rise in other states, Alabama’s attractiveness to new residents seeking economic stability and affordability continues to grow.

Kansas Has One Of The Lowest Cost Of Living In The U.S.

Kansas is renowned for its low cost of living and affordable housing, making it one of the most affordable states for home buyers. In 2025, the average home price in Kansas was $338,000. Kansas’s median property tax rate is 0.87% of the assessed value, further enhancing housing affordability in the state. Among its cities, Topeka is the most expensive area in which to purchase a home, with a median home value of $349,000.

Kansas’s combination of reasonable home prices and low property taxes makes it an attractive option for home buyers looking to maximize their investment while minimizing costs. This affordability trend highlights Kansas as a top choice for those seeking to relocate to one of the most affordable states for home buyers.

Most Affordable States For Home Buyers: Kentucky

Kentucky boasts some of the most beautiful landscapes in the United States. In 2025, the median home price in Kentucky is $355,800, and the average property tax rate is a low 0.12%. This combination of affordable housing and low property taxes makes Kentucky a popular destination for home buyers. The state also has numerous scenic tourist spots, ensuring residents enjoy stunning views without traveling far.

For those looking for the most affordable state for home buyers, Kentucky stands out not only for its affordability but also for its natural beauty and quality of life. This trend reflects the growing appeal of states where buyers can find excellent value, picturesque environments, and favorable living conditions.

Most Affordable States For Home Buyers: The Show-Me State Of Missouri

The cost of housing in Missouri has been increasing over the last couple of years. In 2025, the typical home price in Missouri stands at $349,000, accompanied by a property tax rate of 1.24%, significantly lower than in nearby Illinois. Columbia boasts the highest property values in the state, with a median price of $335,600.

Missouri remains a top contender for those seeking the most affordable state for home buyers due to its relatively low property taxes and competitive housing prices. This trend underscores Missouri’s attractiveness for home buyers looking to maximize affordability while still accessing quality housing options.

Most Affordable States For Home Buyers: Tennessee’s Affordable Home Prices

The median home prices in Chattanooga, Tennessee, stand at $339,650, making it the city with the highest home prices in the state. Meanwhile, the median home price across Tennessee is $325,000. Home prices in Tennessee have been on the rise since 2015. Despite the increase, Tennessee remains one of the most affordable states for home buyers, offering a significant amount of home for the money. This affordability, combined with the state’s appealing living conditions, makes Tennessee a popular choice for those looking to maximize their investment in real estate.

Texas Home Prices And Cost Of Living

Texas has been one of the most popular states for homebuyers in recent years. As of 2025, Texas’s average median home price has risen to $380,000. Despite this increase, it remains a prime destination for many Californians due to the absence of state taxes and a relatively low cost of living. Texas continues to be one of the most affordable states for home buyers in the United States, offering great potential for further appreciation of property values.

Many buyers are attracted to Texas for its economic advantages and diverse real estate options, contributing to its enduring appeal as a leading state for affordability and investment potential. For those seeking the most affordable states for home buyers, Texas remains a key contender, balancing current affordability with promising future growth.

Most Affordable States For Home Buyers: Michigan Home Values

Michigan is one of the most affordable states for home buyers in 2025. The state offers affordable housing options, with the average median home value at $367,500. Michigan’s appeal extends beyond its affordability, boasting numerous beautiful destinations and a prime location bordering Lake Michigan.

Michigan’s economy is thriving as the home of the three giant automakers. Many New York and California companies are setting up operations throughout the state, contributing to its economic health. Michigan enjoys one of the lowest unemployment rates in the country and a very low cost of living, making it an attractive option for those looking to relocate.

Overall, Michigan provides an attractive mix of reasonably priced housing, economic prospects, and a superior standard of living, positioning it as a prime option for individuals looking for value and security in home purchases. 

Pennsylvania Tops Affordable Housing List For The East Coast

Pennsylvania tops the list of the most affordable states for home buyers needing to stay on the East Coast in 2025. Many residents of Connecticut, Massachusetts, New York, and New Hampshire are relocating to Pennsylvania due to its affordable housing market. With average home prices around $355,000, homebuyers can expect to get a lot of value for their money. Pennsylvania offers a mix of rural areas ideal for buyers seeking acreage and open space.

The state’s lower taxes, low cost of living, great restaurants, and popular tourist spots make it an attractive option for new residents. Additionally, Pennsylvania boasts ample job opportunities and a robust economy, enhancing its appeal as a top destination for those looking for affordable housing on the East Coast.

What Are The Best States To Buy an Affordable Home With a Low Cost of Living

The US is one of the largest countries in the world. If you have spent time in more than one state, you know each state has its own character. From accents to food to living costs, every state is different. This variety gives you many options when choosing a place to live, but it also means that some states may fit your needs better than others.

When deciding where to live in the US, consider various factors. What matters most to you is personal. However, we have compiled a list of important things to consider before your next move. There are several factors to consider when looking for the best states to buy a home, beyond just the housing prices.

What Is The Most Affordable State To Live In?

Many remote wage earners in high-taxed states with high housing prices often ask, “What are the most affordable states to live in?” In 2025, Mississippi ranks first with a cost of living index score of 83.3. Other states included in the list of the Most Affordable States For Home Buyers are Kansas, Alabama, Oklahoma, Georgia, Tennessee, Missouri, Iowa, New Mexico, West Virginia, and Kentucky.

These states provide affordable housing, lower property taxes, and overall reduced living expenses, making them appealing choices for remote workers and individuals seeking to optimize their financial security while experiencing a high quality of life.

A Summary of Factors To Consider In Deciding The Best States To Buy an Affordable Home

So, how do I decide what state to live in and the best states to buy an affordable home. We will list the various factors you should consider in the order of importance below.

1. Cost of homes and rent
2. Cost of living.
3. Unemployment rate
4. Median income compared to other states
5. Job availability.
6. Weather conditions
7. Access to transportation, commute time, and main roads
8. Amenities for the family: Shopping, entertainment, and parks.
9. Crime rate.
10. Quality of education and ranking in school districts
11. Quality and availability of health care.

Now that you’re thinking about what you need and want from your state of residence, it will be easier to narrow down your best options. We have covered the factors that affect just about everyone, but there may be additional considerations you need to make depending on your individual circumstances.

For example, if you’re moving with school-aged children, you will certainly want to include educational opportunities in your research. Just remember, with fifty states, you have tons of options! Take the time to determine the things that are most important to you and do your research before you decide which state to call home.

Qualifying For Mortgage When Moving To Other States

Gustan Cho Associates Mortgage Group is a direct lender with no extra requirements for government and conventional loans. We specialize in non-QM and bank statement loans for self-employed borrowers. A popular option we offer is the Asset Depletion Mortgage Program, which does not require income for borrowers with significant assets but no job.

When moving to another state, your income is important for getting pre-approved. If you transfer jobs within the same company to a different branch, you should have no issues.

For those starting a new job with a new company, Conventional Loans only need a signed job offer letter. With government loans, you need the job offer letter plus 30 days of pay stubs before closing. If you have no job and want to buy a home using our Asset Depletion Mortgage Program, it’s not a problem.

If you work remotely, you will need a letter stating your position is remote and that you do not need to report to a physical location. To get approved for a mortgage when relocating to other states, please reach out to us at Gustan Cho Associates at 800-900-8569 or text us for a quicker response. You can also email us at alex@gustancho.com. We are available seven days a week, including evenings, weekends, and holidays.

FAQs: Most Affordable States For Home Buyers To Purchase Home

What are the Most Affordable States for Home Buyers in 2025?

In 2025, Mississippi, West Virginia, Kansas, Alabama, and Oklahoma will be the most affordable states for home buyers. These states offer affordable housing options with low living costs and median home prices ranging from approximately $147,000 to $198,199.

How has Remote Work Influenced Home Buying Trends?

The coronavirus outbreak has led many employers to offer remote work opportunities. This allows remote workers the flexibility to live anywhere, often relocating to states with more affordable housing. Many people have moved from high-cost states like California to more affordable states like Tennessee, Texas, Nevada, and Florida​.

What is the Median Home Price in California Compared to Other States?

As of 2025, the median home price in California is $634,400, significantly higher than the national median home price of $365,500. This has driven many Californians to move to more affordable states like Texas, Georgia, Alabama, Mississippi, and Florida​​.

Why are People Moving from High-Tax States to More Affordable States?

High housing prices and high taxes in states like New York and California have led many residents to relocate to states with lower taxes and more affordable housing. Over the past decade, New York lost 1.38 million taxpayers, while California lost one million residents​.

What are Some Benefits of Moving to More Affordable States?

Moving to more affordable states offers several benefits, including lower housing costs, reduced property taxes, and lower living expenses. These states often provide a better quality of life, with a mix of urban and rural settings that allow home buyers to maximize their investment without breaking the bank​​.

Which States have the Lowest Median Home Values?

The states with the lowest median home values include West Virginia, with approximately $147,000; Mississippi, at about $173,650; Arkansas, with around $190,500; Oklahoma, with nearly $193,700; and Indiana, with approximately $365,700.

How Can Remote Workers Benefit from Relocating?

Remote workers can benefit significantly by relocating to more affordable states. They can enjoy lower housing costs, reduced living expenses, and the ability to buy larger or more desirable properties than they could afford in high-cost states like California or New York.

What Factors Should Home Buyers Consider when Choosing a State to Relocate to?

When deciding on a state to move to, home buyers must consider factors such as cost of living, job availability, quality of education and healthcare, crime rates, and access to amenities.

For more information on mortgage qualifications and relocation tips, contact Gustan Cho Associates at 800-900-8569 or email gcho@gustancho.com. They offer various loan programs, including non-QM and bank statement loans for self-employed borrowers, to help you relocate.

This blog about the Most Affordable States For Home Buyers To Purchase Home was updated on December 16, 2025.