Affordable homes still exist: States like West Virginia, Arkansas, Mississippi, and Ohio remain among the cheapest places to buy a home.
Look beyond the sticker price: Property taxes, insurance costs, and everyday living expenses can have a major impact on long-term affordability.
Remote workers have more options: A salary earned in a high-cost city can go much further in lower-cost markets, potentially making homeownership far more attainable.
For many Americans, homeownership feels increasingly out of reach.
Between higher mortgage rates, rising home prices, and stubborn inflation, buying a house can seem impossible in many parts of the country. But according to a new analysis from NetCredit, affordable housing still exists if you're willing to broaden your search beyond the hottest real estate markets.
The study found that many of the nation's most affordable housing markets are clustered throughout the South and Midwest, where home prices, property taxes, and overall living costs remain far below the national average.
The real question isn't simply where homes are cheapest. It's where buyers can stretch their dollars the furthest without sacrificing quality of life.
The states where homeownership is still attainable
According to NetCredit's analysis, some of the most affordable states for homebuyers include:
West Virginia
Arkansas
Mississippi
Louisiana
Indiana
Kentucky
Michigan
Missouri
Ohio
These states generally combine lower home prices with below-average costs of living, making monthly housing expenses far more manageable than in many coastal markets.
For example, NetCredit found median home prices in several of these states remain below $270,000, a stark contrast to many West Coast and Northeast markets where median prices can exceed $500,000.
Look for overlooked cities
Recent affordability studies have highlighted cities such as Flint, Michigan; Toledo, Ohio; Peoria, Illinois; and Springfield, Illinois among the most affordable housing markets in the country.
While these cities don’t generate the flashy headlines, they definitely offer significantly more house for your money, which is attractive to many buyers right now.
This is especially the case for remote workers, retirees, first-time buyers, and families seeking lower living costs.
Watch property taxes carefully
Property taxes can dramatically impact affordability.
Some states with relatively low home prices offset those savings with higher tax bills. Others offer surprisingly low annual property taxes that can save homeowners thousands of dollars over time.
Over a 30-year mortgage, the difference can add up to tens of thousands of dollars.
Compare actual tax bills, not necessarily tax rates. A lower tax rate doesn't always mean a lower bill. Always look at the actual annual tax payment on homes you're considering.
Don't ignore insurance costs
Insurance has quietly become one of the fastest-growing housing expenses.
States prone to hurricanes, wildfires, floods, tornadoes, or severe weather often have significantly higher insurance premiums. In some areas, homeowners’ insurance can add hundreds of dollars per month to housing costs.
Pro tip: Get insurance quotes before making an offer. Many buyers wait until after signing a purchase contract to shop for insurance. That's a mistake. Get quotes early in the process so there are no surprises later.
Consider remote work opportunities
One reason affordable housing markets are attracting new attention from buyers is the rise of remote work, especially if your salary is based on the cost of living in a more expensive area.
For example, a worker earning a salary based in San Francisco, Seattle, or New York may suddenly find that a home in West Virginia, Indiana, or Ohio becomes dramatically more affordable.
It's smart to follow the paycheck, not the housing market. If your employer allows remote work, calculate what your current salary could buy in a lower-cost market. The results can be eye-opening.