When the American Dream Costs Less
Finding an affordable home in America has become harder than ever. Comparing median home prices with household incomes determine where homeownership is still within reach. The results reveal a clear winner—the Midwest—while several once-affordable states have slipped out of range.
Here’s a look at the 20 most affordable states for housing, ranked from 20 to 1.
#20 Mississippi
Mississippi keeps housing within reach for most families, with modest home prices and steady wages. While new construction hasn’t kept pace with demand, the overall cost of living remains one of the lowest in the country, making it a consistently affordable option for first-time buyers.
Chad Robertson, Adobe Stock#19 Nebraska
Nebraska’s mix of agriculture, finance, and small-city life helps keep housing costs moderate. In places like Omaha and Lincoln, residents find spacious homes and short commutes without paying big-city premiums. It’s the kind of stability that makes homeownership attainable for many middle-income earners.
#18 Alaska
Despite its remote geography, Alaska remains surprisingly affordable. High median wages balance out shipping and energy costs, giving residents a better shot at buying than in many parts of the Lower 48. For those who can handle long winters, it’s a rare blend of income strength and open space.
Quintin Soloviev, CC BY-SA 4.0, Wikimedia Commons
#17 North Dakota
Energy jobs, a sparse population, and a strong agricultural base help keep homes affordable in North Dakota. Even with fluctuating oil markets, most cities and towns maintain housing prices that align comfortably with local wages. If you’re after elbow room and low stress, it’s a top contender.
#16 Virginia
While the DC suburbs are notoriously expensive, the rest of Virginia offers a completely different picture. From the Shenandoah Valley to the coast, housing remains accessible, thanks to a balanced economy and a wide range of price points outside the urban core.
#16 Virginia
While the DC suburbs are notoriously expensive, the rest of Virginia offers a completely different picture. From the Shenandoah Valley to the coast, housing remains accessible, thanks to a balanced economy and a wide range of price points outside the urban core.
Bruce Emmerling, Wikimedia Commons
#14 Kentucky
In Kentucky, traditional charm meets modern affordability. Home prices remain moderate while wages have ticked upward, giving locals more breathing room in their budgets. It’s one of the few states where you can buy a farmhouse and still afford concert tickets.
Margaret Burlingham, Adobe Stock#13 Oklahoma
Oklahoma’s low cost of living extends naturally to its housing market. The state’s steady construction pace and abundant land keep prices practical. Families can find roomy properties near major cities like Tulsa and Oklahoma City without sacrificing lifestyle.
Nicholas J. Klein, Adobe Stock#12 Louisiana
Even with storm-related challenges, Louisiana stands out for affordability. Home prices remain well below the national median, and many areas—from Baton Rouge to Lafayette—offer great value for families seeking culture, space, and stability.
Cavan, Adobe Stock
#11 Minnesota
Minnesota balances rising wages with well-managed growth. Outside the Twin Cities, buyers find affordable homes in clean, well-connected communities. Its affordability owes as much to smart planning as to strong incomes.
Dee, Adobe Stock#10 Maryland
Maryland’s high median income helps offset its housing prices. While D.C. suburbs can be pricey, other areas—from Frederick to Hagerstown—offer more reasonable options. The combination of strong job markets and manageable prices keeps homeownership attainable for many families.
Sean Pavone, Shutterstock
#9 Pennsylvania
Pennsylvania offers value across its small cities and towns, where housing costs rise slowly but steadily. Places like Pittsburgh and Lancaster show that affordability and good quality of life can go hand in hand. For buyers, it’s a state where every dollar stretches further.
#8 Missouri
In Missouri, both rural and urban housing remain within reach. Property taxes are low, building costs are moderate, and incomes are keeping up with the market. St Louis and Kansas City suburbs deliver family-friendly affordability and solid growth potential.
#7 Kansas
Kansas combines low housing prices with plenty of space, creating a calm and cost-effective environment for homeowners. From Wichita to Topeka, homes remain well within middle-income budgets. It’s the kind of steady affordability that defines the Midwest advantage.
webherper, Pixabay
#6 Michigan
Michigan continues to attract buyers looking for big value. Affordable metros like Grand Rapids and Lansing balance strong job markets with reasonable mortgages. Even near the Great Lakes, it’s possible to find waterfront living that doesn’t break the bank.
#5 Illinois
Illinois surprises many with its affordability. While Chicago grabs headlines for high costs, much of the state offers accessible housing and solid infrastructure. Outside the metro area, first-time buyers can still find affordable homes and stable communities.
#4 Indiana
Indiana’s economy and housing market both deliver consistency. Affordable new developments around Indianapolis and Fort Wayne keep ownership rates high. The state’s balance of jobs, space, and low prices make it a standout in the Midwest.
Nicholas J. Klein, Adobe Stock
#3 Ohio
Ohio remains a housing sweet spot—even as cities like Columbus grow rapidly. Smaller metros and rural areas maintain accessible prices, offsetting tighter supply in urban cores. For most households, owning a home here is still a realistic goal.
Nicholas J. Klein, Adobe Stock
#2 West Virginia
In West Virginia, natural beauty meets down-to-earth affordability. Modest home prices and low property taxes allow families to buy more for less. Slower cost-of-living growth ensures that homeownership remains within reach for generations.
#1 Iowa
Iowa stands at the top of the list as the most affordable state in the nation. With a median home price around $295,000 and a strong median income, it offers one of the best home price-to-income ratios in America. Even with recent growth, the state continues to build enough homes to keep prices steady—a model the rest of the country could learn from.
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