In a recent video, real estate expert Nicholas Gerli from Reventure Consulting highlights the top 10 states in America where you can still purchase a home for around $200,000 or less. Despite the current housing bubble, these states offer affordability and opportunities for both homebuyers and real estate investors.
10. Alabama
According to Gerli, Alabama is an affordable state with a typical house value of $226,000. The monthly mortgage payment is approximately $1,400, making it an attractive option. Alabama boasts low property taxes, about $800 a year, and added 36,000 people in 2023 due to its affordability and inbound migration.
9. Arkansas
Arkansas offers a typical mortgage payment of around $1,300 per month. However, Gerli notes that affordability varies within the state. For instance, while northwest Arkansas can be more expensive, areas like Little Rock offer more affordable housing options. The state added 22,000 people in 2023, indicating a growing interest in its affordable real estate market.
8. Indiana
Indiana is known for its affordable housing, particularly in metros like Indianapolis, where home prices are around $240,000 in good school districts. The state added over 20,000 people in 2023, showing a steady influx due to its affordability and the economic opportunities it offers.
7. Louisiana
Louisiana presents a unique case where home prices are declining, particularly in New Orleans. The state lost 20,000 people last year, partly due to hurricanes and outbound migration. Despite these challenges, Gerli found that a four-bedroom house in New Orleans could be bought for $240,000 with a monthly payment of $1,400.
6. Kansas
Kansas offers affordable housing with a typical home value of $223,000. The state capital, Topeka, even offers movers $15,000 cash incentives to attract new residents. This can significantly help with home purchases, making Kansas a compelling option despite its lower inbound migration rates.
5. Oklahoma
Oklahoma stands out with a typical monthly house payment of $1,300. Areas like Edmond, near Oklahoma City, offer affordable homes with good school ratings. Oklahoma added 32,000 people due to its affordability and attractive living conditions, making it a popular choice for new residents.
4. Kentucky
Kentucky offers a typical home value of $201,000, with areas like Louisville, Lexington, and Bowling Green showing significant affordability. Gerli highlights a three-bedroom house in Bowling Green priced at $200,000 with a monthly payment of less than $1,000, making Kentucky an appealing state for homebuyers.
3. Mississippi
Mississippi has some of the lowest home prices in the country, with a typical value of $178,000. Despite being the poorest state in America with a median income of $56,000, it offers substantial discounts on homes. The state added 2,000 people in 2023, but typically sees a net loss of residents.
2. Iowa
Iowa features a typical home value of $214,000 with a median income of $74,000, giving it a low home value-to-income ratio of 2.9. Areas like Cedar Rapids offer homes for under $200,000, making it a highly affordable state. Iowa’s affordability and growing economy make it a strong contender for homebuyers.
1. West Virginia
West Virginia tops the list as the most affordable state with home prices significantly lower than the national average. Despite its reputation, the state has added residents for three consecutive years, driven by its affordability. Gerli showcases a five-bedroom mansion in Charleston priced at $687,000, illustrating the state’s incredible value for money.
Affordability and Growth Potential
These states offer a unique blend of affordability and growth potential, making them attractive for homebuyers and investors. While moving to a new state can be challenging, exploring these options could lead to finding a dream home within budget.
Economic Potential
What do you think? How might the influx of new residents to these affordable states impact their local economies and job markets? Will the affordability of these states continue to attract new residents in the future, and what might be the long-term consequences for housing prices? How are these states managing the increased demand for infrastructure and services due to the growing populations?
See the full video on Reventure Consulting’s YouTube channel for more details here.
