Buying a home is a goal for many people, but home prices, high interest rates and high construction costs combined with lagging income growth have put owning a home out of reach, especially for young people. Fortunately, however, there are some states in the U.S. that offer more affordable housing options.
A recent analysis by BestBrokers points to the Midwest as the part of the country with the most affordable home prices. The team analyzed median home sale prices for residential properties across the U.S. in 2023, based on data from Redfin. These prices were correlated with per capita personal income figures for the third quarter of 2023 (sourced from the U.S. Bureau of Economic Analysis) to determine how many years of savings it would take the average American to buy a home in each state.
Topping the list of the ten most affordable states is North Dakota, with average home prices hovering under $300,000. Following North Dakota are Iowa, Illinois, Ohio, Pennsylvania, Michigan, Missouri, Kansas, Oklahoma and Indiana. The least affordable states to buy a home are Hawaii, California, Utah, Idaho, Montana, Oregon, Washington, Colorado, Arizona and Rhode Island.
Find the full analysis and more relevant stats on the BestBrokers website.