These houses seem to be an uphill task to acquire, since finding a home that fits your needs while leaving you with extra cash to enjoy life may appear as a difficult task, but there are still areas where homes are very affordable.

If buying a home is your priority and you are open to living in different locations, you should look into the cheapest places to buy a house.

What all the cities on the cheapest places to buy a house have in common is this: Housing costs consume less than 30% of the typical household’s budget-sometimes way less.

The rankings are based on an analysis of metro areas of the United States by the value of a typical home, median household income, and the monthly mortgage payment required to buy a home at current interest rates with a 20% down payment.

Taken together, these factors provide a “mortgage-to-income ratio“-the percent of one’s income that goes to the costs of housing. Housing costing about a third of one’s income has been for a long time considered “affordable,” because that leaves a margin for other essentials, debt repayment, and savings for later.

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But affordability is about more than just your mortgage-to-income ratio. For tips on how to figure out how much house you can afford, keep reading below, but be sure to chat with a lender, too.

Most Affordable Cities to Buy a House inside, How To Choose Your Investment!

Pittsburgh, PA
Three rivers run through Pittsburgh, the city offering an impressive 446 bridges – more than you’ll find in Venice, Italy.

• Median home value: $202,454
• Mortgage-to-income ratio: 19%
• Median monthly mortgage: $1,053
• Years to save for 20% down: 5.3

Jackson, MS
Known as “The City With Soul,” Jackson delivers Southern hospitality and a deep sense of history.

• Median home value: $185,338
• Mortgage-to-income ratio: 22%
• Average monthly mortgage: $964
• Years to save for a 20% down payment: 5.7

Syracuse, NY
This central New York hub is positioned for a boom thanks to a giant computer chip plant development in the area.

• Median home value: $212,404
• Mortgage-to-income ratio: 23%
• Average monthly mortgage: $1,105
• Years to save for a 20% down payment: 5.8

Toledo, OH
Glass manufacturing helped Toledo gain recognition, along with its eclectic architectural styles.

• Average home price: $176,787
• Mortgage-to-income ratio: 24%
• Average monthly mortgage: $920
• Years to save for 20% down: 5.6

Wichita, KS
This Kansas city is pretty unclogged, averaging a commute of just 19 minutes.

• Average home price: $201,780
• Mortgage-to-income ratio: 24%
• Average monthly mortgage: $1,050
• Years to save for 20% down: 5.7

Akron, OH
But home to several universities, Akron’s youthful energy makes it a desirable place to many.

• Median home value: $207,190
• Mortgage-to-income ratio: 24%
• Typical monthly mortgage: $1,078
• Years to save for a 20% down payment: 5.8

St. Louis, MO
A city steeped in history, St. Louis is famous for its landmark Gateway Arch, its diverse architecture.

• Median home value: $242,214
• Mortgage-to-income ratio: 25%
• Typical monthly mortgage: $1,260
• Years to save for a 20% down payment: 6

Augusta, GA
Famous for an annual golf tournament, Augusta has more to pride itself on than perfectly manicured putting greens. Outdoor fun abounds in Augusta, too.

• Average home value: $224,839
• Mortgage-to-income ratio: 25%
• Average monthly mortgage: $1,170
• Years to save for a 20% down payment: 6.4

Rochester, NY
This former manufacturing hub has retained a vibrant cultural identity through its industrial shifts, thanks to a rich arts scene.

• Average home value: $233,753
• Mortgage-to-income ratio: 25%
• Average monthly mortgage: $1,216
• Years to save for a 20% down payment: 6.2

Detroit, MI
Detroit is always redoing itself as a city that is home to stable economic housing within a highly culturally charged atmosphere.

• Median home value: $240,536
• Mortgage-to-income ratio: 26%
• Average monthly mortgage: $1,251
• Years to save for a 20% down payment: 6.2

Cheapest States To Buy A House At A Glance

Along with the purchase price, buyers will also need to pay annual real estate (or property) taxes and homeowners insurance.

Tips to Determine What You Can Afford

There are several calculators and ways to figure out how much house you can comfortably afford. A popular option, to say the least, is an Affordability Calculator, in which you put in your income, month-on-month debts, and down payment amount to see, quite clearly, the potential of your price range.

By focusing on the cheapest places to buy a house, you will not only get a home but also have enough money to really enjoy the rest of your life.

Selecting the Least Expensive State to Buy a House

For most home buyers, the cheapest place to buy a house would be an important consideration. Whether it is to cut costs or whether it is to get the best value from the hard-earned money, the modern buyer’s way of thinking is centered on real estate that matches tighter financial limits.

One central process toward finding affordable accommodation is identifying the cheapest state where one should buy a house.

• As of 2024, West Virginia ranks as the most affordable place to purchase real estate.
• Among the 10 most affordable states, Alabama boasts the lowest property tax rate
• Most of the top 10 states have average home values under $200,000.

What is the Cheapest State to Buy a House?

With interest rates above 6% as of August 2023, homebuyers will still find it a challenging juncture to be in the market; home prices also remain comfortably above their levels of a few years ago.

However, there are some states where the price of real estate remains relatively cheap, and in certain cases, below the $200,000 mark.

While deciding on a state to live in, while being conscious of affordability, buyers must look beyond home prices to factors such as taxes and insurance. The list for the most affordable states was developed using various variables as shown below:

• Median home value $
• Property tax rates
• Cost of living
• Housing price index movement
• Average annual home owner’s insurance cost $

While these states include lower costs of living and home prices, it is essential to note that the median family incomes might also be less in these places.

Keeping these factors in mind, buyers can make informed decisions about which market to purchase their next home in, especially if affordability is key.

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Pre-Qualify or Pre-Approve and Speak with a Loan Officer

It is advisable to get pre-qualified or pre-approved through a lender in order for you to get a better idea of what you can afford. Pre-qualification offers a preliminary review to offer an estimate of how much one may be able to borrow. Pre-approval involves a credit check and can give you a more reliable estimate of how much the lender is willing to let you borrow.

A lender, accompanied by a real estate agent, will be in a position to help weed out the selection so that you only concentrate on residences that you can afford, especially in the cheapest places to buy a house.

If you are willing to relocate, some cities will offer financial incentives in hopes of attracting new residents, and this makes buying a home in those cities even more affordable.