The Top 10 Cheapest States To Buy a House in 2022

Starting your homebuying journey and wondering what state is most affordable? Whether it's your first home, forever home, or an investment - take note of where in the US you could grab a good deal!

We have ranked the following by median sale price within the state and its largest city (by population)...

Here are the 10 cheapest states to buy a house in 2022:

1. Delaware

It is the second-smallest and sixth-least populous state, but also the sixth-most densely populated. Delaware's largest city is Wilmington, while the state capital is Dover, the second-largest city in the state. Until 2020, and the COVID-19 recession, Delaware had steadily added jobs.  Delaware's economy relies more on the insurance sector than any other.

State median sale price: $214k

State median sale price to household income: 3.0x

Wilmington median sale price: $289k

Wilmington median sale price to household income: 4.2x

2. West Virginia 

West Virginia is the 41st-largest state by area and ranks 38th in population, with around 1.792 million residents. The capital and largest city is Charleston.  The state is noted for its mountains and rolling hills, and its historically significant logging and coal mining industries. West Virginia has the nation's fourth highest poverty rate at 17.8%, significantly higher than the 13.1% nationwide poverty rate.  Coal mining has been an integral part of West Virginia's economy for over a century, with large-scale mining operations beginning in the mid 1800's. With coal deposits in 53 of the state's 55 counties, West Virginia ranks as the second largest coal producer in the country, trailing only Wyoming.

State median sale price: $306k

State median sale price to household income: 6.0x

Charleston median sale price: $167k

Charleston median sale price to household income: 2.8x

3. New Jersey   

New Jersey is the densest state by population in the US, with the 47th largest area and the 11th highest population of the U.S. states.  NJ’s economy is known for biotechnology, pharmaceuticals, specialized agriculture, and informational technology. In 2020, New Jersey had the highest number of millionaires per capita in the United States, approximately 9.76% of households. It also is strong in agricultural production ranking second among states in blueberry production, third in cranberries and spinach, and fourth in bell peppers, peaches, and head lettuce.  It has the highest combined tax rate of any state.  

State median sale price: $322k

State median sale price to household income: 3.5x

Trenton median sale price: $499k

Trenton median sale price to household income: 4.7x

4. Nebraska  

Nebraska is composed of two major land regions: the Dissected Till Plains and the Great Plains. The Dissected Till Plains region consists of gently rolling hills and contains the state's largest cities, Omaha and Lincoln. The Great Plains region, occupying most of western Nebraska, is characterized by treeless prairie.  While employment growth has been strong and unemployment low in Nebraska, economic growth has been somewhat less impressive. Over the last five years, the state's GDP grew at an annualized rate of just 1.2%, below the 1.9% annualized national economic growth.  Nebraska's insurance industry has more than doubled in size in the last five years and now ranks as the state's largest industry, after real estate.  Notable companies in the industry headquartered in the state include Berkshire Hathaway and Mutual of Omaha -- which rank third and 337 on the Fortune 500, respectively.

State median sale price: $322k

State median sale price to household income: 4.8x

Omaha median sale price: $305k

Omaha median sale price to household income: 3.5x

5. Mississippi  

Mississippi is the 32nd largest and 34th-most populous of the 50 U.S. states. Jackson is both the state's capital and largest city.  Mississippi is the poorest state in the country. Nearly 20% Mississippi residents live below the poverty line, compared to 13.1% of all Americans.  Mississippi's largest industry after real estate is ambulatory health care services.  The industry -- which includes doctors, dentists, and diagnostic laboratories -- is large despite the lower likelihood of state residents to make regular doctor visits. Americans with insurance visit the doctor with greater frequency, and in Mississippi, one of a minority of states not to pass Medicaid expansion, 11.8% of the population is uninsured, a larger uninsured rate than in all but five other states.  Economic growth has also been slow in recent years.

State median sale price: $327k

State median sale price to household income: 6.5x

Jackson median sale price: $429k

Jackson median sale price to household income: 6.4x

6. South Dakota  

South Dakota is the seventeenth largest by area, but the 5th least populous, and the 5th least densely populated of the 50 United States.  Due in large part to COVID-19, there were fewer people working in South Dakota in June 2020 than the same time in 2019. Still, the state's employment decline of 3.1% was one of the smallest such declines of any state over that period. For context, employment fell 8.6% nationwide over that period.  Additionally, despite the slight decline in five-year employment, South Dakota's job market is healthier than that of most states.  After real estate, banking is the largest sector in South Dakota.  The state's large banking industry can be traced back to the economic recession of the early 1980s. In an attempt to attract new business, state lawmakers eliminated regulatory caps on interest rates and fees for banks. Citibank was the first major financial institution to take advantage, and has since brought thousands of jobs to Sioux Falls. Citibank was soon joined by other institutions, including Wells Fargo, Capital One, and First Premier.

State median sale price: $333k

State median sale price to household income: 5.0x

Sioux Falls median sale price: $304k

Sioux Falls median sale price to household income: 3.7x

7. Michigan   

Michigan is the tenth most populous state, the 11th most extensive state by area, and the largest by area east of the Mississippi River. Although Michigan developed a diverse economy, it is widely known as the center of the U.S. automotive industry, which developed as a major economic force in the early 20th century. It is home to the country's three major automobile companies (whose headquarters are all in Metro Detroit). While sparsely populated, the Upper Peninsula is important for tourism due to its abundance of natural resources, while the Lower Peninsula is a center of manufacturing, forestry, agriculture, services, and high-tech industry.  Though Michigan's GDP increased at an annual rate of 1.4% since 2015, this growth was likely hampered by people moving out of the state. From 2010 to 2019, over 73,000 more people moved out of Michigan than moved to it, equivalent to 0.7% of the 2010 population.  The state also is home to some of the largest hospitals in the country, including University of Michigan Hospitals and Health Centers in Ann Arbor and Butterworth Hospital in Grand Rapids.  Hospitals, nursing, and residential care facilities are the largest industry.  

State median sale price: $350k

State median sale price to household income: 5.5x

Detroit median sale price: $383k

Detroit median sale price to household income: 6.1x

8. Virginia  

The capital of the Commonwealth of Virginia is Richmond; Virginia Beach is the most-populous city, and Fairfax County is the most-populous political subdivision.  As is the case in most states, there are fewer people working in Virginia now than there were five years ago. Still, the 1.8% overall decline in employment in the state from June 2015 to June 2020 is less severe than the comparable 2.7% decline nationwide. For those who are working in the state, incomes are slightly higher than average.  While outpatient health care services is the largest industry in the state, it not as dominant as oil extraction is in Texas or computer manufacturing is in Oregon. Virginia's economy is heavily diversified.  

State median sale price: $352k

State median sale price to household income: 4.4x

Virginia Beach median sale price: $341k

Virginia Beach median sale price to household income: 4.2x

9. Georgia  

Georgia is the 24th-largest in area and 8th-most populous of the 50 United States.  Georgia's economy ranks as the second best on the East Coast or in the South, and 10th best among all states. Despite having higher than average employment in industries at high risk of slowdown during the pandemic, Georgia's unemployment rate compares favorably to that of the nation as a whole.  Georgia's broadcasting and telecom industry has surged ahead of the pack, particularly of television shows, due in part to the lucrative tax incentives that state lawmakers passed in 2007.  As a result, film and television production spending in the state climbed from $93 million in 2007 to $2.7 billion in fiscal 2018. Currently, Georgia is the third largest television and film production and shooting location, trailing only California and New York.

State median sale price: $357k

State median sale price to household income: 5.5x

Atlanta median sale price: $374k

Atlanta median sale price to household income: 4.4x

BROWSE: Homes for sale in Atlanta, Georgia here.

Cityscape of Atlanta

10. Missouri

Missouri is tied with Tennessee for being bordered by the most states, at 8.  The Missouri River, after which the state is named, flows through the center into the Mississippi River, which makes up the eastern border. With more than six million residents, it is the 19th-most populous state of the country. The largest urban areas are St. Louis, Kansas City, Springfield and Columbia; the capital is Jefferson City.  It is known for its jazz music, barbecue, and beer; it is a major center of beer brewing and has some of the most permissive alcohol laws in the U.S. It is home to Anheuser-Busch, the world's largest beer producer.   Missouri is the only state to have two Federal Reserve Banks: one in Kansas City (serving western Missouri, Kansas, Nebraska, Oklahoma, Colorado, northern New Mexico, and Wyoming) and one in St. Louis (serving eastern Missouri, southern Illinois, southern Indiana, western Kentucky, western Tennessee, northern Mississippi, and all of Arkansas).

State median sale price: $363k

State median sale price to household income: 5.8x

St. Louis median sale price: $392k

St. Louis median sale price to household income: 4.6x

READ NEXT: The Top 10 Most Expensive States to Buy a House in 2022

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