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Although the median sale price for single-family homes in April 2023 was $269,500, anyone looking for a condo or co-op can easily find one for around $120,000 or a townhouse for around $150,000. Finding an affordable home that meets a family’s needs in today's housing market takes extra patience and research. Apart from the initial sticker price, other factors, such as taxes and utility costs in a given state, also contribute to the decision to buy. However, if you’re in the market for a home, finding one below half the national average is challenging but not altogether impossible.
How Much It Costs to Buy a House in Every State, Ranked - Business Insider
How Much It Costs to Buy a House in Every State, Ranked.
Posted: Fri, 05 Jul 2019 07:00:00 GMT [source]
Worst States for Millennials To Buy a Home
The state has the 16th-lowest median annual property taxes (at about $1,500) and 12th-lowest effective property tax rate (at 0.63%). The state has several homebuying programs — some tailored specifically to first-time homebuyers and others that are open to them along with others. These offer benefits such as competitive mortgage rates, lower fees, and down payment and closing costs assistance.
#3. Utah – Average Home Value: $502,647
Maine is the fourth-worst state for investing in real estate due in part to its low resident affordability, ranking 51st collectively. The cost of living index is relatively high (13th-highest), considering the median household income is $64,767 (33rd). Plus, the state lacks opportunities for residents, e.g., the happiness score and job and population growth were low at 25, 40, and 21, respectively. These numbers limit the number of renters willing to live in the Pine Tree State. The Mountain State ranks third among the worst states for owning rental property. This is primarily due to the overall ranking for rent potential, which looks at the percentage of renters at 22.2%, average monthly rent at $732 (both ranked 51st), and vacancy rate at 9.3%, ranked 45th.
How Much You Need To Earn To Comfortably Own a House in These 100 Big Cities
The town offers many major attractions, but you would be wise to research FEMA’s flood zone map to understand the risks or possible insurance costs involved in any home close to the water. The following 10 states ranked in the bottom half of the worst states for millennials to buy homes due to having increasingly expensive monthly mortgage payments. Hawaii ranks in 51st place with the highest monthly mortgage payment out of any state at $5,086 each month. Do the math and determine your cost of living in a new area, including factors like commute time to work, quality of the local schools, crime rate, and area amenities. If you’re looking for the housing market that’s projected to give you the most return on your investment in the first year, it’s not in California or New York like many might expect.
#9. Nebraska – Average Home Value: $249,135
But just because these taxes – which go toward public schools, services and amenities – are lower, it doesn’t mean state residents are missing out. Depending on the city, Alabama is filled with museums, parks and an educational system that includes five schools that were named National Blue Ribbon Schools in 2023. Oklahoma is one of America's top producers of crude, petroleum, and natural gas. With a competitive job market and many universities to consider, Oklahoma City, the capital, has a strong housing market.
The earning potential of a particular area is influenced by a wide range of factors, including home values, vacancy rates, cost of living, tax burdens, available inventories, and overall rental opportunities. Prospective homeowners should know that New Hampshire falls behind other states when it comes to property taxes. Census Bureau data from 2018 shows that it has the third-highest median annual property taxes paid by residents, at about $5,600. As a result, the effective property tax rate is 2.09%, the fourth-highest in our study.

When you evaluate these statistics, it makes sense why Virginia is one of the best states for rental properties. Due to its high population of renters (34.1%) and low cost of living (12th-lowest), Georgia is ranked as the best state overall to invest in real estate. With a high property appreciation rate year-over-year (Y-o-Y) of 4.70%, there is potential for rising rents and long-term equity growth. To determine which states are best for homeowners, we compared all 50 states across 11 metrics on topics exploring homeowner costs such as taxes, closing costs and homeowners insurance. For a breakdown of our data sources and how we put all the information together to create our final rankings, read the Data and Methodology section below. Frankfort is the capital of Kentucky and its largest cities are Louisville and Lexington.

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Illinois, on the other hand, has the highest foreclosure rate of 0.144%, with one foreclosure for every 694 housing units. Mississippi has the lowest overall cost of living, with a cost of living index of 84.5 versus 100 for the U.S. as a whole. This means that the cost of living in Mississippi overall is 15.5% lower than the cost of living for the national average. Most of the homebuying programs offered by these and other states are similar. They tend to offer lower down payment requirements combined with competitive interest rates and mortgage insurance assistance.
If we’re looking strictly at the cheapest states to buy a home for the first time, the list is different from the overall list of the best states for first-time homebuyers. The table below details the states that offer more than five first-time homebuyer programs (or programs open to first-time homebuyers). On the other end of the spectrum, some states have affordable home prices but still rank poorly in our analysis due to the impact of all 12 of the factors we considered. Nevada’s appeal lies not only in its famous entertainment hub, Las Vegas, but also in its diverse landscapes and outdoor recreational opportunities. The state boasts a sunny climate, breathtaking desert scenery, and access to outdoor activities such as hiking, skiing, and boating.
Meanwhile, top employers include health systems, grocers, military and academic institutions, most notably Ohio State University. Just as diverse is the Ohio landscape – featuring farmlands, big city skylines and roller coaster summits. To make the Buckeye State your next residence, search current homes for sale in Ohio.
After all, it’s right outside Atlanta, another housing market that beat the returns of the S&P 500 over the last half-decade. Median property values are the fourth highest, and available properties are relatively low, which indicates the need for more housing. However, investors need to be mindful of how quickly they can raise the rent since its increase in rental income appreciation is the nineteenth lowest in the country. Despite this, however, homeowners can enjoy the fact that the state ranks extremely well for its low number for foreclosures and low burglary rate.
Utah could be a great place to call home whether you opt to go with West Valley City and its solid housing market or not given the long-term prospects for its economy. Gretna is the best market to consider when you’re a homebuyer looking in Louisiana, but the state has a lot to offer potential buyers, especially if you haven’t owned a home before. Despite not reaching California levels, Colorado is likewise a state where home values are high and getting higher. Westminster could be a great spot to start for young homebuyers looking for a respite in a state that is among the worst for millennial homebuyers. The incredible market for buyers in Fairbanks is probably explained by the fact that home prices are projected to decline over the next year. GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
Housing Grants for People With Disabilities 2024 - The Mortgage Reports
Housing Grants for People With Disabilities 2024.
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In 2018, the ratio of the median home value to median household income was 3.10, the 17th-best in our study. The Mountain State offers more than tall, rocky landscapes as it ranks as the best state for homeowners. West Virginia is also No. 1 for having the lowest percentage of households that are housing cost-burdened, with those who pay more than 30% of their income on housing (14.86%).
With a real estate tax rate below 1% and a median home value under $200,000, the Show-Me State may be a good option for those with a tighter housing budget. To see what’s available in your price range, check out the homes for sale in Missouri. A lower cost of living and median home value below $175,000 makes Iowa another affordable state. To find your home in the Hawkeye State, search current houses for sale in Iowa. There are many great and affordable places to buy a house and what’s best for each home buyer will depend on their lifestyle, budget and goals. As of August 2023, the state of the housing market is a challenging one for many home buyers – and is expected to continue to be for several reasons.