- New study reveals Illinois as the cheapest US state to buy a house.
- Ohio lands in second place while Oklahoma follows in third.
- Hawaii rounds up the list as the most expensive state in the US to buy a house.
Illinois is the US state where it is cheapest to buy a house, a new study reveals.
The study, conducted by Studio City realtors, analyzed data from Zillow on the median sale price of houses in each US state in 2022 to find which of the 50 states are the cheapest to buy a house.
In first place comes Illinois, where the monthly median sale price of houses in 2022 was $133,750. It is also the state with the highest median household income on this ranking, resulting in a household income to sale price ratio of 1.69. On that note, Galesburg has appeared to be the cheapest city in Illinois to buy a house, which saw a median sale price of $90,000 in 2022, while its most expensive city, Chicago, was $282,750.
The second cheapest state in the US to buy a house is Ohio, where the monthly median sale price was $155,000 and a household income to sale price ratio of 2.47. Its cheapest city, Portsmouth, saw a monthly median sale price of houses at $120,000 in 2022, while its most expensive city Wooster was $355,000, around 25% more expensive than Chicago, Illinois.
Oklahoma lands in third place with a monthly median sale price of $175,063 and a household income to sale price ratio of 2.91. Ponca City, located in the northern area, saw a monthly median sale price of $126,000, making it the cheapest city in Oklahoma to buy a house. On the other hand, the state capital, Oklahoma City, appeared to be the most expensive with a median sale price of $236,000.
Fourth on the list is Michigan, where the median sale price of houses in 2022 was $179,125 with a household income to sale price ratio of 2.78, followed by Missouri in fifth place at $182,000 with 2.86. However, Missouri’s most affordable city, Sikeston, had a median sale price of $123,000, which is $13,250 less than Alma in Michigan, which was $179,125.
In sixth place is Indiana, where the median sale price of houses in 2022 was $182,100 and a household income to sale ratio of 2.86. Richmond is its cheapest city to buy a house, where the house median sale price was $118,850 — approximately $148,000 cheaper than Bloomington, its most expensive city.
Ranking in seventh place is Arkansas, where the median sale price of houses in 2022 was approximately 2.15% higher than in Indiana. Its house median sale price of $188,713 and a yearly median household income of $50,784 result in a household income to sale ratio of 3.72.
Further down the list is West Virginia at eighth with a median sale price of $191,500 and New York at ninth with $192,500. While there is only a $1000 price difference between the two, the median yearly income in West Virginia is approximately 35.7% less than in New York, resulting in a household income to sale ratio of 4.09.
Alabama rounds up the top list of cheapest US states to buy a house, where it saw a median sale price of $200,000 in 2022 and a household to income sale ratio of 3.51. The cheapest city Ozark had a median sale price of houses at $154,375, while its most expensive city to buy a house in, Daphne, was $369,350 — approximately 30% cheaper than the highest median sale price of houses in New York City, which was $535,000.
Tony Mariotti, Studio City realtor commented on the findings:
“House prices across America have seen a significant increase as market turbulence continues. However, this study offers useful information on the most affordable locations alongside the yearly median household income, which makes it a helpful guide for those looking to relocate as well as for those who are currently looking to buy their first home.”
Cheapest US States in the US to Buy a House (The Cheapest to Most Expensive)
