Cheapest States To Buy a House in 2023

Are you looking to buy a house in the United States? Scholaroo endeavors to reveal the most budget-friendly states to do it, providing valuable insights to aid you in making a well-informed decision.

Purchasing a home stands as the most consequential financial choice for the majority of individuals during their lifetime. Surprisingly, 91% of people in the United States express a desire to buy a home at some point, yet the current percentage of U.S. households that own their homes stands at 65.4%.

The process can be quite exhausting, as there are numerous factors to take into account, including the type of home, neighborhood, nearby schools, and, most importantly, the price. Despite the housing market showing signs of cooling down, there are still certain regions across the U.S. where the market remains highly competitive.

Scholaroo’s newest report uncovers the cheapest states to buy a house in 2023. It considers five essential metrics, including the median home value in each state and the mortgage payment to monthly income ratio, to assess which states offer the most budget-friendly housing markets.

Let’s explore the least expensive places to buy a house this year and see how other states compare in terms of affordability.

Key Highlights

  • The state of West Virginia boasts the most affordable median home value in the entire country, standing at $166,870. Following closely behind are Mississippi with $171,348, and Arkansas with $188,075.
  • On the other end of the spectrum, Hawaii takes the lead in having the highest median home value nationwide, reaching an impressive $850,934. California comes in second at $707,717, followed by New York at $558,897.
  • In terms of the mortgage payment to monthly income ratio, Connecticut boasts the most favorable position in the nation, standing at 22.95%. Conversely, Hawaii holds the unenviable distinction of having the highest ratio at a significant 39.69%.
  • When it comes to property taxes, Hawaii takes the lead with the lowest rate at just 0.31%. On the contrary, New Jersey imposes the highest property tax rate at 2.13%.

Projection of the median home value over the next three years:



Scholaroo conducted a comparison of the 50 states in the U.S. to identify the most affordable states for buying a house. The evaluation focused on the Real Estate Market dimension, and it involved five relevant metrics, each assigned a specific weight. Each metric was graded on a scale of 0 to 100, with 100 being the highest score.

Subsequently, the data team calculated the weighted average for each state across all metrics to derive its overall score. Using these scores, the states were ranked in order to determine the most budget-friendly options for buying a house.

Real Estate Market (100 points)

Median Home Value: Double Weight (28.57 points)

Note: This metric reflects the median home values across the country in the first quarter of 2023.

Mortgage Payment to Monthly Income Ratio: Double Weight (28.57 points)

Note: This metric shows the mortgage-to-income ratio in each state.

Average Monthly Household Income: Regular Weight (14.29 points)

Note: This metric reflects the average monthly household income in each state.

Average Monthly Mortgage Payment: Regular Weight (14.29 points)

Note: This metric shows the average monthly mortgage payment in the first quarter of 2023.

Property Taxes: Regular Weight (14.29 points)

Note: This metric indicates the property tax rates for each state.