10 Most Affordable States to Buy a Home in 2021
The cost of living varies widely across the country. Knowing how much homes cost, what the property taxes are, and what the job outlooks are in each state can help you decide where you’d like to live. Here are the 10 most affordable states to live!
1 - Indiana
About 6.7 million people are happy to call Indiana, the most affordable state in the country, their home. The median value of a home in Indiana is just $156,000 and the cost of living is below the national average. The median household income isn’t too shabby either, coming in at about $57,600. While you may not think of there being a whole lot to do in Indiana, you’re just a train ride away from Chicago. That means you can get the perfect mix of affordable living and exciting big city life.
State taxes are just 3.23%, one of the lowest in the country, and property taxes average 0.85% which is below the national average. Some of the cheapest cities in the state include Gary, Anderson, and Muncie.
2 - Iowa
Just west of Indiana (with Illinois in between), Iowa is another Midwestern state topping the list of the cheapest places to buy a home. Iowa is known for farming and rural living, so if you want to be surrounded by rolling fields, there are lots of options for country or small-town living. At the same time, if you enjoy city life, Des Moines, Cedar Rapids, and Iowa City are great places to live!
Unemployment is very low, the cost of living is below average, and the median household income is a little over $60,000. With a median value of $159,000, owning a home here is also very affordable. The cheapest places to live in Iowa include Waterloo, Davenport, and Sioux City.
3 - Ohio
Another great Midwest state is Ohio. With a population of a little under 12 million, though, it’s much more populous than many of its neighbors. Median household income is slightly lower than Iowa, coming in at under $60,000, but the cost of living is still below average here. If you love adventuring in the great outdoors, you’ll feel right at home in Ohio. You can enjoy the beauty of Lake Erie as well as the views of Hocking Hills State Park.
Some of the cheapest cities to live include Warren, Youngstown, and Dayton. Ohio is also one of the top 10 most affordable states for income tax with residents paying between 1.98% and 5%.
4 - West Virginia
If you want to head east, West Virginia is the next affordable state on our list with the median house being valued at about $125,000. However, the median household income is much lower than the above states, being less than $50,000. It’s one of the least populated states in the country with only about 1.8 million residents. The cost of living here is just a hair higher than in Ohio, and the property taxes are some of the lowest in the country at only 0.58% on average. Some of the cheapest cities in West Virginia include Clarksburg, Beckley, and Bluefield.
5 - Michigan
If you head north looking for affordability, you’ll find Michigan where the median home value is about $170,000, and the median household income is a little under $60,000. This state has stunning nature and plenty of charm. The population is just a little under 10 million. If you’re wanting to find the most affordable cities in this state, look into Flint, Detroit, and Bay City. Michigan is fourth in affordability for state income tax rate with all residents paying 4.25% flat.
6 - Wyoming
Known for agriculture and mineral extraction industries, this sparsely populated Western state has lots of wide-open spaces! Since Wyoming is the least populated state in the country (only about 582,000 residents!), it makes sense it’s one of the most affordable. Wyoming is the first state on our list where the median home breaks $200k with a median value of just over $235,000.
Incomes in Wyoming are the highest on the list thus far at just above $65,000 and the cost of living is below average for the country. Residents enjoy the 10th most affordable property taxes in the country, just 0.61% on average. Because there’s no state income tax in Wyoming, you’ll also be saving money in that area. Some of the most affordable cities include Riverton, Casper, and Evanston.
7 - Wisconsin
Back in the Midwest, the next state for affordable homes is Wisconsin where the median home value is about $197,000, the median household income is about $64,000, and the cost of living is lower than average. The state is a major force in manufacturing and agriculture. Milwaukee is a booming metropolitan area while Madison is a consistent contender for the best cities to live in the country. Some of the most affordable cities in the state with a 5.8 million population include Fond du Lac, Racine, and Beloit.
8 - Missouri
Next on the list is Missouri where the median household income is over $57,000, the median home is valued at $168,000, and the cost of living is the fifth most affordable in the country. The state has a population of over 6 million people and has ample ways to keep residents busy. There are great sports and shopping. Missouri is known for being a hotspot for aerospace and manufacturing.
The most affordable cities in Missouri to live include St. Joseph, Independence, and Joplin. State income tax isn’t too shabby here either with residents paying between 1.5% and 5.4%. Property taxes are also below the national average.
9 - North Dakota
One of the quieter states on the list is North Dakota with a population of about 762,00. Residents of North Dakota enjoy a very low unemployment rate and fairly high median household incomes of a little under $65,000. There’s no shortage of outdoor activities to enjoy all year round.
The median home value in the state once again breaks 200k by being just over $205,000. Some of the cheapest cities to live here include Jamestown, Minot, and Fargo. Cost of living is just a bit higher than Wisconsin, but residents enjoy the lowest income taxes in the entire country, ranging from 1.1% to 2.9%.
10 - South Carolina
We might be a little biased, but we definitely think that South Carolina is the best state on the list! South Carolina is a fantastic place to visit thanks to the sunny weather, beautiful landmarks, and gorgeous nature. However, it’s an even better place to live and over 5 million people agree with us.
The median home value is just under $180,000 while the median household income is over $56,000. The cost of living is also below average. Florence, Myrtle Beach, Sumter, and Spartanburg are just a few of the most affordable cities to live in this affordable state. While state taxes vary, some residents pay as little as 1.1%. Property taxes here are also among the most affordable in the country, on average just 0.57%.
Apply for a Loan in One of the Most Affordable States with the Carolina Mortgage Team