The 10 Cheapest States To Buy A House In 2022 + Money-Saving Moves

Did you know that down payments for a home are 3 – 6 times cheaper than most Americans think? As a potential home buyer, knowing where you can get the most bang for your buck can help you narrow down your list of options.

We analyzed data from measuring the movement of single-family house prices in Q4 2021,¹ cost of living index,² the house price index per state in Q4 2021³ and median household income⁴ to gather our estimates on the cheapest states to buy a house in 2022.

Note that your particular overall costs may not reflect your state's averages and medians, since each person's localized housing market, income, credit score and additional qualifying factors should be taken into consideration. To find more precise estimates, check your state or local county housing markets. To learn more about how we ranked the cheapest states to buy a house, jump to the methodology section.

Learn which states are the cheapest and most expensive to buy a house, plus ways to help save you cash when buying your new home. If you’re thinking about building your home from the ground up, learn which counties are the cheapest to build a home.

Key Findings

• Tennessee is the cheapest state to buy a house in 2022.
• Oregon is the most expensive state to buy a house in 2022.
• $514,568 was the average house price in the United States in Q4 2021.

Table Of Contents

• Cheapest States To Buy A House
• Most Expensive States To Buy A House
• Expert Money-Saving Moves
• Methodology

The states listed below ranked the highest on basis of the following factors:

• Movement of single-family house prices by state: The change in single-family house prices in Q4 2021 from Q3 2021
• Cost of living index by state: The amount of money needed for a comfortable lifestyle, with “100” marked as the United States national average
• House price index per state: Single-family home transactions with conventional and conforming mortgages in Q4 2021
• Median family income: Average household income

If you’re looking to improve your Southern hospitality skills, Tennessee may be the place for you. Tennessee is full of musical hotspots – like Nashville, the country music capital of the nation, and Memphis, the birthplace of rock 'n' roll and the blues.

If you enjoy spending time outdoors, Great Smoky Mountains National Park is at your doorstep. With its low cost of living, lack of income tax and low property taxes, it’s no wonder why this state is ranked number one on our list.  

Measure of movement of single-family house prices: 297.21

Cost of living index: 89

With a cost of living sitting considerably lower than the national average, it makes sense why Illinois sits high on our list. Illinois is also home to the Windy City – Chicago offers all the perks of city life, with plenty of restaurants to try the classic deep dish Chicago-style pizza. With a higher movement in single-family house prices, it’s clear that many Americans see Illinois as one of the best states to live in.

Measure of movement of single-family house prices:  305.98

Cost of living index: 94.3

Oklahoma is more than just one of the cheapest states to buy a house. With barbecue food galore and mid-sized city living in Oklahoma City and Tulsa, it’s hard to beat. If you can deal with striking changes in seasons, you may appreciate life amongst the Oklahomans. Plus, Oklahoma’s cost of living index sits notably lower than the national average at 87.9.

Measure of movement of single-family house prices: 305.55

Cost of living index: 87.9

Ohio may not be on your mind when it comes to relocating, but there is more there than meets the eye. Ohio offers small towns, bustling cities and outdoor activities to meet anyone’s needs.

If you love football, you’ll find no bigger fans than in Ohio – you’ll just need to choose between the Cincinnati Bengals and the Cleveland Browns before you move there. Ohio’s cost of living index is significantly lower than the national average, sitting at 91.3.

Measure of movement of single-family house prices:  227.64

Cost of living index: 91.3

As one of the largest states in the U.S., there are endless options for both cities and small towns to buy a home in Texas. If you enjoy Southern comfort cuisine and vibrant culture, this state has no limit. Plus, with a low cost of living and no income taxes, it makes it a cheaper option compared to nearby states like New Mexico.

Measure of movement of single-family house prices: 273.25

Cost of living index: 92.1

Virginia is full of rich American history, from Jamestown to colonial Williamsburg. Plus, it offers both mountainscapes in areas like Blue Ridge and beaches in coastal towns like Chesapeake and Portsmouth. The beautiful scenery, low cost of living and historic places to explore make Virginia a hard state to beat.

Measure of movement of single-family house prices:  271.16

Cost of living index: 101.8

If you prefer living somewhere that sees the changing of the seasons, Indiana may pique your interest. Indianapolis, the state capital of Indiania, is currently one of the largest cities in the United States and has plenty of economic opportunities.

If you love Midwestern comfort foods and living among friendly faces, Indiana is a great place to call home. Indiana’s cost of living also sits significantly below the national average, making it an affordable option.

Measure of movement of single-family house prices:  250.48

Cost of living index: 90.6

Delaware may not be on your radar to buy a house in, but if you’re looking for a tax-friendly state, it’s a great option. If you’re craving the capeside lifestyle, Delaware offers a whole coast against the Delaware Bay with plenty of beachy towns to explore.

There are countless state parks, including Cape Henlopen State Park and Delaware Seashore State Park for the avid hiker in you. From fishing to simple bird watching, there are plenty of fresh-air activities to take advantage of. Plus, the cost of living is just above the United States average, sitting at 107.9.

Measure of movement of single-family house prices:  272.6

Cost of living index: 107.9

Done with the city life and looking to move to the tranquil heart of America? Iowa offers a change of pace – with rolling hills of green and plenty of room to plant your roots. Des Moines and Cedar Rapids balance both city and countryside life.

If you’re a movie fan, you can even take weekly trips to the iconic Field of Dreams in Dyersville. With the low cost of living and low crime rate, Iowa can be an idyllic place to call home.

Measure of movement of single-family house prices: 390.94

Cost of living index: 89.9

If you’re looking for some all-year sun and great Southern cuisine, you may thrive in Mississippi. As one of the Gulf Coast states, there’s plenty of sandy beaches to explore, including the infamous Ship Island. Mississippi is known to welcome those who enjoy a slow-paced lifestyle with one of the lowest costs of living.

Measure of movement of single-family house prices: 318.87

Cost of living index: 83.3

Below are the top 20 cheapest states to buy a house in 2022.

Below are the 20 states ranked as the most expensive states to buy a house in 2022. 

Disclaimer: We used the most recent available data to gather our estimates on the most expensive states to buy a house in 2022. To find more precise estimates, check your state or local county housing markets.

1. Oregon
2. New Mexico
3. Alaska
4. Utah
5. Hawaii
6. Nevada
7. Kentucky
8. South Carolina
9. Massachusetts
10. New York
11. Nebraska
12. Arkansas
13. Louisiana
14. Maine
15. Idaho
16. New Hampshire
17. Arizona
18. Pennsylvania
19. Montana
20. West Virginia

There are plenty of ways to save money besides moving to a cheaper state to purchase your new home. Below are some tips and advice to follow from professional real estate experts and investors to help you leave more cash in your pocket.

If your budget allows, choose the better neighborhood

Better homes in highly desirable locations tend to appreciate faster and also hold their value when the market turns.⁵ Once you’ve settled on your ideal state, research the best neighborhoods with factors like educational systems, crime rates and average home value. This will help you narrow down your list of possible areas to investigate when searching for your new home.

Buying smaller may be better in the long run

When buying a home for yourself, buying a smaller, cheaper house in your ideal neighborhood will help you avoid extra taxes and utility costs that would come from a larger house, netting you a lower cost of living in the long run.⁶

Buying cheap vs. expensive will depend on what you’re looking for

Property is currently appreciating across the board, but how quickly and how much your property appreciates might depend on what you’ve put into it. For instance, more expensive homes may already have had the finishing touches completed, which doesn’t leave much room for implementing more home improvements.

Meanwhile, a cheaper home may require the buyer to put extra money into repairs and renovations, but the profit to be made on those renovations may be greater and may generate a quicker appreciation of the property. Whether to buy lower or aim higher depends on each buyer and what they’re hoping to get out of a home purchase.⁷

To keep more coins in your piggy bank, check out the infographic below for more money-saving tips.

If you’re ready to purchase a new home, be sure to check out your options before securing a home loan. See what today’s rates are and let us help you find the perfect fit for your homeownership journey.

To find the cheapest states to buy a house, we analyzed data from 2021 including the movement of single-family house prices in Q4 2021, cost of living index, the house price index per state in Q4 2021 and median household income.

Here are the factors we considered when weighing our rankings:

• Movement of Single-Family House Prices by State in Q4 2021 – 30%
• Cost of Living Index by State – 30%
• House Price Index Per State in Q4 2021 – 30%
• Median Family Income – 10%

Source List

¹FHFA

²MERIC

³FRED

⁴HUD  

⁵Direct communication with Bill Gassett, founder of Maximum Real Estate Exposure

⁶Direct communication with Leif Kristjansen, founder of FiveYearFIRE

⁷Direct communication with Matt Woods, co-founder and CEO of Sold.com