The 5 Best States to Buy a Home in 2024

Rising home prices and soaring mortgage rates over the past few years have left potential home buyers looking for some relief. According to Redfin, 20.5% of Americans would be willing to relocate if it meant getting a good deal on a home.

Thankfully, some locations across the country are still relatively inexpensive, according to a home price report by The Ascent. Here are five of the best states to buy a home, based on price and how each area stacks up to the rest of the country based on its property taxes and cost of living.

1. West Virginia

Typical home price: $158,172

West Virginia is the most affordable state to buy a home, according to The Ascent report, considering that the typical single-family home price in the state is $158,172 — which is 45% of the average U.S. home price.

Making West Virginia even more affordable is the fact that its property tax rate is just 0.58%, making it one of the best states for low property taxes. In addition to lower housing costs, data from RentCafe also shows that West Virginia’s overall cost of living is 8% lower than the national average.

2. Mississippi

Typical home price: $176,725

The next cheapest state to have a mortgage in is Mississippi, with the typical home price of $176,725 being half the cost of the typical home nationwide.

Property taxes in Mississippi aren’t as low as in West Virginia, but they’re still affordable. Homeowners in the state pay an average of $1,097 per year in property taxes — from a 0.75% tax rate — which is half the national average. The cost of living in Mississippi is 16% lower than the national average too, making homeowners’ budgets go even further.

3. Kentucky

Typical home price: $197,627

A single-family home in Kentucky is 56% of the price of the typical U.S. home, costing home buyers $197,627.

The cost of living is significantly lower in Kentucky than in most of the country, as residents will pay 8% less than the national average for everyday expenses. However, homeowners will pay about 3% more for utilities. Property taxes shouldn’t be a problem in the state, as the tax rate is just 0.80%.

4. Arkansas

Typical home price: $198,511

Getting a mortgage in Arkansas will be much cheaper than in many other states, with the typical home price being 57% of the U.S. average. Property taxes are also low in the state, with residents paying 0.57%.

Some residents may find it easier to pay for everyday expenses as well, considering that the cost of living is 8% lower than the national average. However, one higher monthly expense is groceries — which is 2% higher than the average.

5. Oklahoma

Typical home price: $199,599

Though its average home price is slightly higher than Arkansas, Oklahoma ties the state for having a typical home price that’s 57% of the national average. Property taxes are also relatively low in the state, with an effective rate of 0.85%.

Homebuyers will also find everyday expenses generally affordable, with the cost of living being 13% below the national average.

How to get the best housing deal in your area

If you don’t want to move to a new state for cheaper housing, there are a few steps you can take to try to get the best mortgage:

• Take the time to compare lenders: Not all lenders will look at your credit history, employment, debt, and savings the same way. Getting mortgage quotes from different lenders will help you find the best deal possible. This may be especially important if you’re a first-time home buyer trying to figure out the process.
• Pay off debt and save money: Mortgage lenders want a low debt-to-income ratio, so paying down credit card balances and other debt is essential. They’ll also want to see that you have money in your savings account for the down payment and to potentially cover home repairs or future payments.
• Watch your credit history: You can’t do much to improve your credit overnight, but consistently paying your bills on time and eliminating debt will help improve your score. The better your credit score, the better chance you have at getting the best mortgage interest rates, so do everything you can to raise your score.

While homes aren’t cheap right now and interest rates aren’t exactly favorable, remember that buying a home is a personal decision, not just a financial one. Be smart about how much you spend, and try to find a home that has at least a couple of features that are important to you.

This article was written by Chris Neiger from The Motley Fool and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to [email protected].