The Best U.S. States to Buy a Home Under $150K

Feeling discouraged by the housing market? Homeownership is more attainable in these five states.

For many people, buying a house is a goal post of success. It can also be a great way to build long-term wealth. However, with Zillow indicating the current average U.S. home value as $339,048 and Indeed.com reporting the average annual salary as $55,640, homeownership is out of reach for an increasingly large number of people. According to CNN, increasing home prices in 2022 priced out 4 million Americans from being able to afford a home.

Finding an affordable home that meets a family’s needs in today's housing market takes extra patience and research. Apart from the initial sticker price, other factors, such as taxes and utility costs in a given state, also contribute to the decision to buy. However, if you’re in the market for a home, finding one below half the national average is challenging but not altogether impossible. So, below we've rounded up the states where you’re most likely to succeed.

Related: 6 U.S. Islands Where You Can Buy a Home for Under $150k

West Virginia

Average home value:$151,886

According to Zillow’s Home Value Index (ZHVI), West Virginia is a great place to search for an affordable family home. As of March 2023, nearly 60 percent ofhomes sold under list price. The state also boasts both a low tax burden and cost of living.

The capital, Charleston, offers a variety of homes between 1,000 and 3,000 square feet under $150,000. If you’re looking for a home within commuting distance of the Washington, D.C. area, you can find a fixer-upper in Martinsburg, Charles Town, or Harper’s Ferry. At this price point, you can also find an affordable home built in the early 1900s within commuting distance of the Pittsburgh, Pennsylvania area in Wierton. The state is full of affordable outdoor recreation with many great state parks.

Other key places to find accommodation in West Virginia includes Riverfront Parkersburg and Morgantown, home to West Virginia University.

Mississippi

Average home value:$166,966

The Magnolia State is known for being extremely affordable to live in. Farmers and fishers have always enjoyed the bountiful nature of the state, which offers access to the Gulf Coast and great tailgating. For value per square foot, consider Gulfport, the state’s second-largest city. The town offers many major attractions, but you would be wise to research FEMA’s flood zone map to understand the risks or possible insurance costs involved in any home close to the water.

With just shy of 150,000 residents, the state capital of Jackson, Mississippi offers solid home values in a strong job market. For the target price, there are many two- and three-bedroom freestanding homes available for purchase.

And for anyone with a DIY spirit or a restorers heart, Mississippi finds always pop up on Cheap Old Houses. A recent fave is a 3,400-square-foot, four-bedroom, three-bathroom, wood-framed Victorian built in 1900 in Winona.

Oklahoma

Median home price:$188,453

Oklahoma is one of America's top producers of crude, petroleum, and natural gas. With a competitive job market and many universities to consider, Oklahoma City, the capital, has a strong housing market. Although the median sale price for single-family homes in April 2023 was $269,500, anyone looking for a condo or co-op can easily find one for around $120,000 or a townhouse for around $150,000.

Apart from the capital, there are also affordable homes in Tulsa, where many healthcare companies are headquartered. Remote workers can also check out the Tulsa Remote program, an initiative that can earn its winners $10,000 in grants if they move to Tulsa to work remotely or start a business.

Ohio

Median home sale price:$227,600

With major cities like Cleveland, Cincinnati, and Columbus towering in our minds, it is hard to imagine reasonably priced homes in the state. But it is very possible, even in those very cities. Columbus, for example, has diverse listings under $150,000. Although it is harder to find move-in ready stand-alone homes in Cincinnati at this price point, there are condominiums available and houses that could use a touch of TLC. Cleveland also offers over 500 homes at this price point, at the time of writing, including many multi-family homes—ideal for intergenerational living or house hackers. If you’re looking to get away from the big cities, try Toledo with over 250 available listings (at the time of writing) and Lebron James’ hometown of Akron with nearly 200 homes within budget.

Kentucky

Median home sale price:$243,100

You might be surprised to know that you can nab a home under $150,000 in a state known for great bourbon and even better bluegrass. It is true that you can get houses in Louisville, the biggest city in Kentucky. Whether a condo or a stand-alone bungalow is right for your family, the Kentucky Derby destination has hot homes within budget. Alternatively, opt for a move-in ready home measuring around 1,000 square feet for under $150,000 in Lexington, the second-largest city in the state.

Related: 10 Early Steps to Take Before You Decide to Buy a Home

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