Philadelphia, PA - If you are looking to buy a home, it is important to find one within your budget. Buying a house in a state where prices are below your income is essential to your long-term success as a homeowner. West Virginia is the most affordable state to buy a house, followed by Texas and Kansas.
West Virginia Is The Cheapest State To Buy A Home
The price of a home is a major factor in determining where to purchase a home, and West Virginia is the cheapest state to buy in 2023, according to a recent study. The national average home price increased from $246,000 in January 2020 to $269,000 in January 2021. West Virginia is a beautiful state with miles of unspoiled nature and majestic mountain views. The cost of living is low, and West Virginians can afford to spend weekends at the beaches and major cities of neighboring states.
Housing costs are also affected by utilities and state income taxes. For example, Hawaii has four times the electricity that Louisiana does. In addition, homestead protections are important, especially in states like Florida. West Virginia's incredibly low taxes are one of the reasons why West Virginia is the cheapest state to buy a home in 2023.
In 2023, prices should remain low. Housing inventory is expected to increase slightly in 2023. New home builds are expected to increase. However, some homebuyers may wait a few years before purchasing a home. This strategy can be smart, depending on your financial situation and life goals.
Texas Is The Second-cheapest State To Buy A Home
Texas is the second-cheapest state to buy your first home in 2023, and it has plenty of room to grow. With a median price of $230,253, the state is less expensive than its neighbor, Georgia. The unemployment rate is lower than the national average, but the poverty rate is 13.8%. One of the most appealing factors for buyers is the state's lack of state income tax, which can be expensive in some states.
Texas has one of the country's lowest cost of living, with a cost of living index of 92.1 and a median household income of $75,100. The median home price in Texas has grown 18.6% since the first quarter of 2021, making it the fifth cheapest state to buy a home in 2022.
While Texas is experiencing a housing crisis, home prices have risen over the past year, and the Austin-Round Rock area's average price is $450,000. Despite the affordability of homes in Texas, property taxes are still very high in this area.
Arkansas Is The Fifth-cheapest State To Buy A Home
While many Americans are wary of rising real estate prices, the average home price in Arkansas is currently the fifth lowest in the country. This results from a combination of factors, including median household income, cost of living index, and home prices. In addition, the state has low unemployment rates and a relatively low poverty rate.
The average price of a home in a state will also vary depending on the region. Some neighborhoods can cost as little as $50,000, while others can run up to $1 million. Another important factor is property taxes, which most buyers will pay yearly. For example, in New York City, property taxes are notoriously high.
Other factors that affect the cost of living include the cost of utilities. For instance, the cost of electricity in Louisiana is almost four times higher than that in Arkansas. State income taxes also have a large impact on the cost of housing.
Kansas Is The Fourth-cheapest State To Buy A Home
The Kansas City, KS housing market is one of the most affordable in the nation. However, the current market is not as cheap as it was just a few years ago. The average price of a home in Kansas City is now nearly $316,700 - almost double the price of the same property a decade ago. But that doesn't mean that Kansas isn't growing: the average home price in the Kansas City metropolitan area increased 11.6% this year and 2.7% in the last quarter, according to the Kansas CityMLS.
The recent housing market climate is largely due to a combination of factors. Rising demand and a lack of inventory have combined to keep prices high. As a result, the median home value in the U.S. was $450,600 in February. Fortunately, there are still some bargains to be had. The following list is based on each state's projected to change in home values from February 2022 to February 2023.
While the prices of homes in Ohio are relatively high (average prices in Ohio are $145,700), the home prices in Kansas are low, at only $155,300. The state property tax rate in Kentucky is just 0.78 percent, which means a typical homeowner will pay just under $1,500 in state property taxes per year. Furthermore, Kentucky has a high homeownership rate, making it a great place to buy a home. The largest cities include Louisville, Lexington, and Frankfort.
