With U.S. home values currently at $348,853, it's essential to consider cost-effective home ownership options without compromising quality of life.

These 10 states offer a wide range of housing options for all lifestyles and preferences, but make sure you do your research online and take your family and work needs into account.

 

What are the Best States in Buying a House?

1. Pennsylvania

• Average Home Value: $254,722

Currently, Pennsylvania is the best state to buy a house. There is a wide range of urban and rural areas in Pennsylvania, making it a suitable location for various lifestyles. It is an attractive option for homebuyers thanks to its rich history, vibrant culture, and affordable home prices. Furthermore, the state boasts a strong job market and excellent educational institutions.

2. North Carolina 

• Average Home Value: $323,487

North Carolina combines natural beauty, a mild climate, and a thriving economy. Beautiful beaches and majestic mountains provide endless opportunities for outdoor activities in the state's diverse geography. The low cost of living and a strong sense of community make North Carolina an appealing place to call home.

3. Utah 

• Average Home Value: $518,806

Its breathtaking landscapes, including national parks, mountains, and picturesque valleys, have made Utah a popular tourist destination. It has a strong economy, excellent healthcare, and low crime rates. Buying a home in Utah offers an active outdoor lifestyle, a family-friendly environment, and a relatively low cost of living.

4. Kentucky 

• Average Home Value: $197,948

While thousands of visitors flock to Kentucky for the Kentucky Derby, one of the world's most prestigious horse races, more than 4.5 million people live there. There's a good reason for this. Kentucky has a low cost of living and a high median home value. However, Kentucky is more than just low prices and horse races.

A massive underground cave system, lush forests, waterfalls, and mountains can also be found here. While city dwellers will find excitement in Louisville or Lexington, those who prefer a slower pace of life will be at home in one of the many rural areas.

5. Nevada

• Average Home Value: $415,689

Nevada's appeal extends beyond its famous entertainment hub, Las Vegas, to its many landscapes and outdoor recreation opportunities. The state is ideal for outdoor enthusiasts with its sunny climate, breathtaking desert scenery, and outdoor activities like hiking, skiing, and boating. Aside from this, Nevada does not have a state income tax, which makes it a desirable choice for those seeking financial benefits.

6. Iowa

• Average Home Value: $209,313

In addition to being one of the most affordable states in the U.S., Iowa is also considered one of the safest. The cost of living is around 90% of the national average, and housing costs are only 75%, so Iowa offers financial benefits and a diverse population.

The rolling hills are lush with greenery, and there is plenty of space to plant your roots. The cities of Des Moines and Cedar Rapids balance city life with country life. Its scenic landscapes make it an excellent destination for outdoor activities.

7. Indiana

• Average Home Value: $233,236

A mix of large cities and small towns makes Indiana a great place for everyone. The state's low cost of living, friendly residents, and relatively low crime rate encourage people to appreciate every season.

8. Ohio

• Average Home Value: $215,956

The state of Ohio consistently ranks high on multiple "best of" lists. Among Ohio's leading industries are steel production, motor vehicle assembly, agriculture, finance, and research and development.

Top employers include health systems, grocers, the military, and academic institutions, most notably Ohio State University. The Ohio landscape is just as diverse, surrounded by farmlands, big city skylines, and roller coaster summits. The cost of living in Ohio is also among the lowest in the nation.

9. Nebraska

• Average Home Value: $253,511

Nebraska ranks among the top 10 happiest states because of its happy residents. In its tourism tagline, it combines affordability with humor. Known for its beauty and recreational activities, including golf, the state has a relatively low cost of living.

10. Mississippi

• Average Home Value: $169,389

Mississippi has its appeal despite its low-ranking public schools. Its southern hospitality, cuisine, and blues music make it a popular tourist destination. It is also affordable to live in Mississippi.

Mississippi has the lowest cost of living among the cheapest states to buy a house, at 15% below the national average. Mississippi allows individuals to save money each month for work, retirement, or family needs.

Cheapest State to Buy a House

Choosing where to live is one of the many decisions in buying a house. When selecting a state based on affordability, buyers should consider home prices, taxes, and insurance costs.

1. West Virginia
2. Alabama
3. Mississippi
4. Arkansas
5. Louisiana
6. Indiana
7. Delaware
8. Oklahoma
9. Kentucky
10. Ohio

 

Expert Money-Saving Tips

Home buyers on a tight budget can benefit from moving to a city with lower home prices, but you can save money no matter where you live.

Get More Detailed Location Information

Search for real estate markets, home values, and living costs at a county - or even city level, and research the cheapest states to buy a house. Finding a low-cost location in an otherwise expensive state may surprise you.

Narrow Down Your Essential Needs

You can also be more flexible with your must-haves. If you can, consider purchasing a home with a smaller yard, less square footage, or a more distant location.

Enhance Your Financial Situation

An increased down payment could allow you to borrow less - or give you more spending power. You could also benefit from a lower interest rate on your mortgage if you increase your salary, pay off debt, and/or improve your credit score.

 

The Bottom Line

Choosing a home involves a lot of considerations. Selecting the right option depends on your needs, lifestyle, and goals. If price determines the home you buy and the area you purchase it in, don't decide solely based on price.

You need to also consider homeowners insurance, property taxes, and the area's cost of living. You'll be better prepared to buy a house if you've done your research, created a budget, and weighed the pros and cons.