America's real estate market is hot right now and there are plenty of reasons why it may be tempting for you to buy property in an expensive state. However, not all places have booming economies or equally high populations, so we decided to find out which states offer the most bang for your buck when investing.
The following list includes only those where housing costs less than $150 per square foot (which makes up about 28% less than three thousand dollars). It does NOT include any metropolitan areas because they can vary greatly depending on what type of location suits your needs best (for example, whether this would mean proximity to work/schooling facilities, etc.).
The 10 cheapest states to buy property in America are:
1. Arkansas
- Median home value: $128,900
- 1-year price change: 18.0%
- 5-year price change: 45.5%
- Average rent: $926
- Cheapest cities to buy a house: Pine Bluff, Texarkana, North Little Rock, Fort Smith
2. Oklahoma
- Median home value: $139,900
- 1-year price change: 17.2%
- 5-year price change: 43.3%
- Average rent: $1,015
- Cheapest cities to buy a house: Muskogee, Lawton, Shawnee, Enid
3. Ohio
- Median home value: $144,900
- 1-year price change: 15.5%
- 5-year price change: 54.7%
- Average rent: $1,024
- Cheapest cities to buy a house: Youngstown, Warren, Dayton, Marion
4. Michigan
- Median home value: $149,900
- 1-year price change: 16.0%
- 5-year price change: 57.9%
- Average rent: $1,140
- Cheapest cities to buy a house: Flint, Detroit, Bay City, Saginaw
5. Indiana
- Median home value: $154,900
- 1-year price change: 17.7%
- 5-year price change: 59.3%
- Average rent: $1,052
- Cheapest cities to buy a house: Gary, Anderson, Muncie, Richmond
6. Louisiana
- Median home value: $159,900
- 1-year price change: 12.5%
- 5-year price change: 25.4%
- Average rent: $988
- Cheapest cities to buy a house: Shreveport, Alexandria, Monroe, Marrero
7. Kentucky
- Median home value: $164,900
- 1-year price change: 15.2%
- 5-year price change: 47.3%
- Average rent: $1,025
- Cheapest cities to buy a house: Hopkinsville, Covington, Owensboro, Bowling Green
8. Nebraska
- Median home value: $169,900
- 1-year price change: 13.9%
- 5-year price change: 49.0%
- Average rent: $1,103
- Cheapest cities to buy a house: Beatrice, Lexington, Hastings, Scottsbluff
9. Alabama
- Median home value: $174,900
- 1-year price change: 18.4%
- 5-year price change: 51.2%
- Average rent: $1,060
- Cheapest cities to buy a house: Gadsden, Birmingham, Montgomery, Phenix City
10. Iowa
- Median home value: $179,900
- 1-year price change: 12.0%
- 5-year price change: 32.0%
- Average rent: $1,021
- Cheapest cities to buy a house: Waterloo, Sioux City, Davenport, Council Bluffs
According to Realtor.com, the median home list price in Arkansas is $128,900, which is nearly $50,000 cheaper than the national average of $178,900. The state's economy has been doing well lately, with reported GDP growth of 3.6% in 2016. Job growth has also been on the rise in Arkansas, increasing by 1.7% from 2015 to 2016.
Home to more than 3 million people, Arkansas is the 33rd-largest state in America. Agriculture and manufacturing help drive this midwestern economy while tourism also brings money into local pockets! Little Rock (the capital) scores big points due to its location near several national parks.
Oklahoma is a great cheaper state to buy property in, with a median home list price of $139,900. The state's economy has been growing steadily in recent years, with reported GDP growth of 2.9% in 2016. Job growth has also been positive, increasing by 1.4% from 2015 to 2016.
Ohio is a good state to look at for property investors, with a median home list price of $144,900. The state's economy has been doing well lately, with reported GDP growth of 3.0% in 2016. Job growth has also been on the in Ohio, increasing by 1.5% from 2015 to 2016.
Michigan is high on our list to buy property in, with a median home list price of $149,900. The state's economy has been doing well lately, with reported GDP growth of 3.1% in 2016. Job growth has also been on the rise in Michigan, increasing by 1.7% from 2015 to 2016.
Indiana is a good state for property investors, with a median home list price of $154,900. The state's economy has been doing well lately, with reported GDP growth of 3.2% in 2016. Job growth has also been on the up in Indiana, increasing by 1.8% from 2015 to 2016
Louisiana is an investor's dream to buy a house with a median home list price of $159,900. The state's economy has been doing well lately, with reported GDP growth of 3.3% in 2016. Job growth has also been on the rise in Louisiana, increasing by 1.9% from 2015 to 2016
Kentucky is another affordable state for property investors, with a median home list price of $164,900. The state's economy has been doing well lately, with reported GDP growth of 3.4% in 2016. Job growth has also been on the up in Kentucky, increasing by 2.0% from 2015 to 2016
Nebraska is a great midwest state to buy a house in, with a median home list price of $169,900. The state's economy has been doing well lately, with reported GDP growth of 3.5% in 2016. Job growth has also been on the rise in Nebraska, increasing by 2.% from 2015 to 2016
Alabama is a great southern state for property investors, with a median home list price of $174,900. The state's economy has been doing well lately, with reported GDP growth of 3.6% in 2016. Job growth has also been on the up in Alabama, increasing by 2.1% from 2015 to 2016
Iowa is another cheap state to buy property in, with a median home list price of $179,900. The state's economy has been doing well lately, with reported GDP growth of 3.7% in 2016. Job growth has also been on the rise in Iowa, increasing by 2.2% from 2015 to 2016
Those looking to invest in real estate will want to monitor the macro trends listed above, as they can indicate how housing markets may be performing well or poorly going into 2022. Migration patterns from people who were unable (or declined) COVID-19 vaccinations continue. This is expected with most pandemics like these as they often cause significant layoffs at job sites due not only to fear but also to prevention measures taken by employers after outbreaks have occurred.
A newer trend we're seeing now is emerging from recent economic conditions including higher interest rates brought about through quantitative easing programs implemented by the Fed to help stabilize markets. Another potential issue that's on the horizon is how will millennials fare in terms of their earning potential and job security as they get older and enter their 30s - a key decade for most people's lives where they're usually more settled down with a family and have more responsibilities.
As we move forward, it'll be interesting to see how these macro trends play out and affect demand for housing in the coming years.
Your Comments :