Average House Prices By State in 2024: The Least and Most Affordable U.S. States
May 19th, 2024
The Least and Most Affordable U.S. States
What are the least and most affordable states in the U.S.? If you're interested in buying, here are the average house prices by state in 2024!
Affordability is the number one factor to consider when buying a home. Generally speaking, many homeowners can afford a mortgage between two and two and a half times their annual gross income.
To calculate the amount of housing debt one should agree to, most lenders use the 28%/36% rule, which states that a maximum of 28% of one's gross monthly income should be spent on housing expenses while no more than 36% should be spent on debt payments, including loan payments and credit cards.
As of the beginning of 2024, mortgage rates have come down from their peak, but they are still high. Low inventory levels also mean that sellers have the upper hand in the market.
If you are among the many who are interested in buying a home but are concerned about the cost, it is very important to consider average house prices by state when deciding where to live.
According to current moving trends, states such as California and New York, which are notorious for their high cost of living and expensive housing prices, are seeing a decline in population as more and more people choose to move to cheaper areas.
The Southeast, on the other hand, is known for its affordable housing prices. As young professionals and families are looking to buy homes, the region continues to experience population gains rather than losses.
While affordability is a driving factor for people to relocate to another state, it is also important to understand regional nuances regarding affordability, especially since some states offer sought-after amenities and lifestyle offerings that are known to come with premium prices.
With that said, let us look at the states in the country that offer the least and most affordable housing options in 2024 and the difference in price over the last year and the last five years so that you can make an informed moving decision.
The average home price in the United States by the end of 2023 was $495,100 based on sales price. This year, West Virginia has the cheapest homes in the country, with an average house price of $152,373.
These low housing prices can be attributed to the state's rural way of life, low property taxes, and low state income tax, which helps keep land and housing prices affordable.
All of the states with the lowest house prices are located in the Southern, Southwest, or Midwest regions of the country. Housing is cheaper in these parts of the country because there is more land, lower taxes, and relatively fewer people than in the Northeast or popular areas on the West Coast.
| U.S. State | Average House Price (USD) in 2024 |
| 1. West Virginia | $152,373 |
| 2. Mississippi | $169,792 |
| 3. Louisiana | $192,173 |
| 4. Kentucky | $192,245 |
| 5. Arkansas | $195,502 |
| 6. Oklahoma | $196,095 |
| 7. Iowa | $205,988 |
| 8. Ohio | $213,323 |
| 9. Kansas | $214,347 |
| 10. Alabama | $217,750 |
While the states listed have the most affordable housing prices, these areas may not have the same job opportunities or popular amenities as compared to states with higher prices.
Whether you are renting or buying a home, moving to an affordable state with low housing costs can save you and your family a lot of money in the long run. If you are moving with kids, consider how much money you will save by moving to a state with lower expenses and if it will be worth relocating.
2. States With The Most Expensive House Prices
Hawaii has the highest average house price in the United States in 2024 at $828,058. Considered the most expensive place to live in the country due to its high cost of living, expensive shipping of goods, and overall limited availability, prices are known to be double in Hawaii than other states on the mainland.
California is relatively close behind, with an average house price of $750,709. Housing costs here might be the biggest contributor to its notorious high cost of living, but healthcare, taxes, food, gas, and other daily expenses are not far behind. Many celebrities have had to reduce the prices of their homes to find a homebuyer.
Generally, the closer you are to the ocean in California, the higher the cost of housing. Home to over 39 million residents, California is the most populous state in the country and the third largest by area, meaning it is possible to find affordable housing in less popular cities.
Los Angeles, San Francisco, San Diego, and San Jose are the most expensive cities in California, with the highest cost of living and the highest house prices. All of these cities are relatively close to the Pacific Ocean and are known for their beautiful weather, top-rated amenities, and excellent job opportunities. The intense competition of people wanting to live in these areas drives home prices higher.
| U.S. State | Average House Price (USD) in 2024 |
| 1. Hawaii | $828,058 |
| 2. California | $750,709 |
| 3. Massachusetts | $586,204 |
| 4. Washington | $563,764 |
| 5. Colorado | $527,413 |
| 6. Utah | $501,653 |
| 7. New Jersey | $497,292 |
| 8. Oregon | $480,428 |
| 9. New York | $450,431 |
| 10. New Hampshire | $445,263 |
3. Investment Return
Return on Investment, or ROI, is a percentage that measures the overall profit earned on a real estate investment after deducting all costs. If you invest in real estate at a young age, the higher the chances of getting a good investment return and the ability to build wealth over time.
If you want to increase your chances of earning more money on your real estate investment, buying a house in a state with a higher investment return is ideal.
Here are the states with the highest investment return over the past year compared to the last five years:
| U.S. State | Average House Price (Jan 2023) | Average House Price (Jan 2024) | Price Difference (1 Year) |
| 1. Connecticut | $341,532 | $378,114 | 10.71% |
| 2. New Jersey | $458,081 | $497,292 | 8.56% |
| 3. Maine | $348,074 | $377,025 | 8.32% |
| 4. New Hampshire | $412,461 | $445,263 | 7.95% |
| 5. Rhode Island | $400,963 | $432,687 | 7.91% |
| 6. Massachusetts | $544,210 | $586,204 | 7.72% |
| 7. Wisconsin | $266,030 | $281,969 | 5.99% |
| 8. Ohio | $201,352 | $213,323 | 5.95% |
| 9. Illinois | $234,045 | $247,809 | 5.88% |
| 10. Vermont | $356,333 | $375,726 | 5.44% |
| U.S. State | Average House Price (Jan 2019) | Average House Price (Jan 2024) | Price Difference (5 Years) |
| 1. Montana | $258,357 | $441,925 | 71.05% |
| 2. Idaho | $254,267 | $434,540 | 70.90% |
| 3. Maine | $221,745 | $377,025 | 70.03% |
| 4. New Hampshire | $267,082 | $445,263 | 66.71% |
| 5. Florida | $233,535 | $388,454 | 66.34% |
| 6. Tennessee | $185,088 | $306,156 | 65.41% |
| 7. Georgia | $192,343 | $317,982 | 65.32% |
| 8. Arizona | $256,894 | $421,939 | 64.25% |
| 9. North Carolina | $194,414 | $318,266 | 63.71% |
| 10. South Carolina | $197,877 | $284,797 | 58.33% |
Here are the states with the lowest investment return over the past year compared to the last five years:
| U.S. State | Average House Price (Jan 2023) | Average House Price (Jan 2024) | Price Difference (1 Year) |
| 1. Louisiana | $198,002 | $192,173 | -2.94% |
| 2. North Dakota | $248,059 | $245,182 | -1.16% |
| 3. Idaho | $438,380 | $434,540 | -0.88% |
| 4. Texas | $298,624 | $296,582 | -0.68% |
| 5. Mississippi | $169,798 | $169,792 | 0.00% |
| 6. Colorado | $526,152 | $527,413 | 0.24% |
| 7. Utah | $500,008 | $501,653 | 0.33% |
| 8. Hawaii | $824,054 | $828,058 | 0.49% |
| 9. Alaska | $345,986 | $348,323 | 0.68% |
| 10. Nevada | $417,012 | $419,993 | 0.71% |
| U.S. State | Average House Price (Jan 2019) | Average House Price (Jan 2024) | Price Difference (5 Years) |
| 1. Louisiana | $167,916 | $192,173 | 14.45% |
| 2. North Dakota | $208,185 | $245,182 | 17.77% |
| 3. Alaska | $280,882 | $348,323 | 24.01% |
| 4. West Virginia | $122,276 | $152,373 | 24.61% |
| 5. Mississippi | $130,207 | $169,797 | 30.40% |
| 6. Maryland | $301,569 | $401,305 | 33.07% |
| 7. Minnesota | $235,856 | $316,980 | 34.40% |
| 8. Illinois | $183,718 | $247,809 | 34.89% |
| 9. New York | $331,174 | $450,431 | 36.01% |
| 10. Hawaii | $602,706 | $828,058 | 37.39% |
According to the data, Connecticut had the highest investment return after one year, while Montana had the highest investment return after five years. On the other hand, Louisiana had the lowest investment return after one year and five years, followed by North Dakota.
If you want to make a good investment and make the most money when purchasing real estate, these numbers are very important to pay attention to. While Louisiana might be the third state in the country with the lowest house prices, it might not be the best option in 2024 for investment properties.
Ryan Fitzgerald, Founder of Raleigh Realty, states, "The real estate market is constantly evolving, influenced by various factors including economic conditions, demographic shifts, and consumer preferences."
4. Economic Factors That Influence Housing Affordability
The economy greatly impacts housing affordability, and certain economic factors play a big role in either driving up or lowering housing costs. Considering these factors, people can predict real estate trends and prepare for what's ahead.
Supply and Demand
When the demand for housing is high but supply is limited, prices tend to rise, making homes less affordable. Meanwhile, home sellers may lower their prices if demand is low and supply is high. The law of supply and demand is why house prices are known to be so high in sought-after areas and cities with high populations.
Mortgage Interest Rates
The interest rate on a mortgage is the percentage charged on the amount you borrowed to buy a home. When interest rates are low, borrowing costs are more affordable, which leads to less expensive homes and more people looking to buy.
Employment and Incomes
A healthy economy means a healthy real estate market. When the job market is strong, and there are more opportunities for people to work and make high wages, the more likely someone will be able to afford a home mortgage in areas that are known for having a high cost of living.
Government Policies and Programs
The government offers many programs, from first-time homebuyer assistance programs to low-income housing tax credits that can help people obtain mortgages. These policies and programs can help someone achieve their homeowner dreams.
Methodology
We found the average house price for 2024, 2023, and 2019 per state and then the percentage increase and decrease over the last year and five years to determine the least and most affordable states and the states with the highest and lowest investment returns. Data was pulled in March 2024 and is subject to change.
We also used data and information from the following sources:
FAQs
What state has the cheapest houses in 2024?
With an average house price of $152,373, West Virginia has the cheapest houses in the country, making it a great place for homeowners looking for affordable options.
What is the best month to buy a house?
The best month to buy a house, specifically if you are looking for lower prices and better deals, is November or December since there will be less competition and fewer homes to choose from than during the summer months.
Is 2024 a good time to buy a house?
The housing market is on the rebound as of the beginning of 2024 which is why it might be a good idea for homebuyers looking for a primary residence to buy a property sooner rather than later.
The Least and Most Affordable U.S. States - Final Thoughts
Consider what states offer the highest and lowest prices as well as the highest and lowest investment returns in order to make an informed moving decision. If you are looking to find your dream home in Raleigh, contact the experts at Raleigh Realty. We are here to help and are prepared to answer your questions.
Ryan Fitzgerald
Hi there! Nice to 'meet' you and thanks for visiting our Raleigh Real Estate Blog! My name is Ryan Fitzgerald, and I'm a REALTOR® in Raleigh-Durham, NC, the owner of Raleigh Realty. I work alongside some of the best Realtors in Raleigh. You can find more of my real estate content on Forbes, Wall Street Journal, U.S. News and more. Realtor Magazine named me a top 30 under 30 Realtor in the country (it was a long time ago haha). Any way, that's enough about me. I'd love to learn more about you if you'd like to connect with me on Facebook and Instagram or connect with our team at Raleigh Realty. Looking forward to connecting!
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