In times of inflation and ever-increasing property and mortgage rates, affording a home seems more distant a dream than ever. Fortunately, some states offer relatively cheaper housing when comparing their rates against the median household income.
1. Iowa
With a median home price of $147,800, Iowa is at the top of the list of the most affordable housing in the U.S. From miles of farmland to bustling cities, Iowa offers it all. With just 10.6 percent of the median household and an estimated monthly mortgage payment of $702, folks can dream of living in this Midwestern state.
2. Indiana
Indiana, the runner-up of this list, rightfully holds its position. With 11.03 percent of your median income, you can easily buy a house in this Midwestern state full of farmland and metropolis alike. The median home cost is $141,700, and the monthly mortgage payment is a bit over $670.
3. Ohio
We aren’t done with Midwestern states yet. Ohio, the birthplace of the Wright Brothers, takes the third spot on this list, requiring only 11% of the median income to buy a house. Homes come at a median price of $145,700, and the monthly mortgage payment is a bit over $690.
4. Nebraska
The Cornhusker State is fond of, you guessed it, corn farming. Known for its booming cattle industry, it takes a mere income to afford a home in the Beef State. While the medium home price in Nebraska sharply jumps to $155,800, residents can make mortgage payments with just 11% of their income.
5. Kansas
Tieing with Nebraska at the fourth position, the income-to-mortgage ratio for Kansas is also 11.9%. However, it is noteworthy that homes in the nation’s “breadbasket” are cheaper, priced at $151,900 compared to Nebraska’s $155,800.
6. Mississippi
The Magnolia State is best known for its Southern lifestyle and catfish production. With prominent cities like Jackson and Biloxi, housing in Mississippi is a dream for many. Residents require only 11.31% of the median household income to buy a house, with most homes being priced at $119,000.
7. West Virginia
Known for its breathtaking valleys and rolling hills, West Virginia comes close to Mississippi with an 11.31% income-to-mortgage ratio. Home prices in the Mountain State sit around $120,000, and the estimated monthly mortgage payment is $568.
8. Oklahoma
The lively college football scene and Native American history tied to its roots make Oklahoma a unique state. With just 11.64% of the median household income, residents can pay for mortgages with ease in Oklahoma. The median home price is $136,800, double the state’s median income.
9. Michigan
Well known for the Great Lakes, Michigan offers homes at a median price of $154,900. It takes
only 11.73% of the household income, or $75,300, to pay for the monthly mortgage. It’s hard to resist the state’s auto production scene in Detroit, the Motor City.
10. Arkansas
Arkansas is famous for its water bodies, including lakes, rivers, and hot springs. “The Land of Opportunity” does justice to its name by promising affordable housing at $127,800. With 12 percent of the median household income, people can pay off a monthly mortgage of about $600.
11. Alabama
Alabama’s football fandom and southern feel escapes no one. The Cotton State offers homes at $142,700. The monthly mortgage is around $678, costing only 12.2% of the median household income.
12. North Dakota
With a 12.27% income-to-mortgage ratio, North Dakota takes the twelfth spot on this list. Its low-density population makes it a perfect place for those seeking a retreat from the hustle and bustle. A typical home in the land of the Sioux Dakota costs a little under $194,000.
13. Kentucky
The state best known for its fried chicken, tobacco farming, and horse racing ranks 13th. Taking just 12.35% of the typical household income, houses in Kentucky cost $141,000, and the estimated monthly mortgage payment is $669.91.
14. Missouri
A typical home in the Show-Me State costs a bit over $157,000. The median household income is $72,300. With the monthly mortgage costing around $747, the income-to-mortgage ratio stands at just 12.4%.
15. South Dakota
Houses in South Dakota are typically priced at $167,100, and the monthly mortgage payment is under $800. With about 12.62% of their median income, residents can easily seek abode in the delightful Mount Rushmore State.
16. Pennsylvania
Ranking 16th, Pennsylvania boasts a median home price of $180,200 and a monthly mortgage payment of about $850. With the median household income coming around $80,000, the income-to-mortgage ratio rests at 12.68%.
17. Wisconsin
It takes 12.82 % of the median household income to buy a house in Wisconsin, and the typical home costs about $180,600. The Badger State borders Lake Michigan and Lake Superior, making itself home to the wilderness of forests.
18. Illinois
The income-to-mortgage ratio for Illinois hits 13.05%, with the median household income being $85,000 and the monthly mortgage payment coming around $924. A typical home in the state costs $194,500.
19. Texas
With typical homes costing $172,500, Texas ranks 19th on the list. Texans can pay for a mortgage with 13.1% of their household income. The Lone Star State is home to big cities such as Houston and Austin.
20. Georgia
Ranking 20th, Georgia is only on the pricier side of things, as residents typically spend 13.43% of their annual income on mortgage payments. A median-priced home clocks in at $176,000. It is imperative to note that Georgia is popular among retirees due to its high affordability and agreeable weather.
21. South Carolina
In South Carolina, residents will spend about 13.47% of their income — about $771 — on a mortgage payment for a median-priced home. House prices in the Palmetto State are about $162,300. Home to historic cities like Charleston, the state has much to offer to its residents.
22. Minnesota
In the Land of 10,000 Lakes, homes clock in at $223,900, and the monthly mortgage payment is about $1,060. Though on the pricier side, Minnesota evens things out with a median income of $93,100 and an income-to-mortgage ratio of 13.71%.
23. North Carolina
The 9th most populous state of the country offers stunning views, attractive job opportunities, and a rich history to its inhabitants. The Tar Heel State has a median home price of $172,500 and a monthly mortgage payment of $819.57.
24. Tennessee
The state is best known for its booming economy, promising health care, and, of course, The Great Smoky Mountains National Park. With a median home price of $167,200 and a monthly mortgage payment of $794.39, Tennessee holds the last position on this list. Not too far from North Carolina, the state’s income-to-mortgage ratio is 13.90%.
Source: Homebuyer.com.
