In 2020, the housing market witnessed mortgage rates at all-time lows, thanks to the global pandemic that hit the world at large. But as normalcy restores, home prices, as per reports, have now increased by over 30%, with the median home price in the U.S. currently benched at $428,700.
Expensive homes are no doubt still selling out within days of being listed, but not everyone can afford them.
But thankfully, it has been found that housing in some states remains affordable this year, even way less than the national median of $428,700. Mississippi has a typical home value of $164,132, and while their income is less than one-third of the national median, the average mortgage payment is only 22.7% of the state’s median income.
West Virginia has the lowest home prices and boasts some of the lowest property taxes. A typical single-family home costs $137,286.
Oklahoma is pretty affordable, with a median home value of $181,574. And in towns like Okla and Okmulgee, an average-priced home is budget-friendly at $69,800. Alabama homes are also affordable, and their typical home value is $204,965. Its historic city of Huntsville, ‘Rocket City,’ has a median home value of $184,500 and allegedly is the 6th best city to buy a house in.
Arkansas offers some of the most affordable homes too. Its median home value is $177,710, a meager 41% of the typical U.S. home price.
Ohio’s typical home value is $213,360. Cleveland, Ohio, rocks a median home value of $73,400 and has some of the lowest living costs in America. Kentucky offers good value to prospective home buyers as its home value is $197,644. This is a mere 46% of the median price of a U.S. home. Lowa’s typical home value is $192,568 & homeowners spend less than 17% of their income on mortgages.
Kansas is another state that combines low housing prices with higher incomes, and its median home value stands at $206,176.
Lastly is Louisiana. A typical home in the Pelican state sells for $214,522. However, buying a home in one of the states mentioned above is worth giving a shot, and even if you consider the home prices as high, it’s best to note that their mortgage rates remain historically low. In all, you will have to be fully prepared before committing to buying a house.