Best States for First-Time Homebuyers 2023

Table Of Content

• Housing Market 2024: Why Americans Pay Higher Real Estate Commissions Than the Rest of the World
• How We Evaluated the Best & Worst States for Real Estate Investing
• What To Look For When Buying A House: A Guide For Home Buyers
• Cheapest ZIP Codes for Housing in Every State
• Could You Afford a Vacation Home in Portugal? Check Out the Prices in These 7 Cities

What are the cheapest states to buy a house in, and what are the most affordable states to live in? That depends on what list you look closely at, as the latest findings will vary. To help you make a more informed decision, we consulted with several real estate experts and trusted industry sources. Buying in Bethlehem is projected to give you one of the best one-year returns on your money at 9.6 percent. And if you’re younger and looking in the Empire State, you might need alternatives to the Big Apple, one of the worst cities for millennials looking to buy homes. Cambridge’s median home value in excess of $1.5 million is the highest in the study, so you could find a great value given that the median list price is about half that.

Housing Market 2024: Why Americans Pay Higher Real Estate Commissions Than the Rest of the World

Find your place of belonging by checking out the homes for sale in Kentucky. When it comes to choosing a place to unpack and stay awhile, affordability is often top of mind for many home buyers. Whether it’s drawing from a need to find cheaper real estate or the goal to get the biggest bang for their buck, today’s buyers are on the hunt for real estate that is within stricter budgets.

How We Evaluated the Best & Worst States for Real Estate Investing

Once you have a location in mind, work with a licensed real estate agent so you can buy with confidence. Fast growth trends in particular tend to overheat housing markets and lead to unaffordable prices, per Martin Orefice, CEO of Rent To Own Labs. Bedford’s 90 represents the highest livability score in the entire study, so this city tucked in between Fort Worth and Dallas appear to have a lot to offer to potential residents.

What To Look For When Buying A House: A Guide For Home Buyers

The median home sale price in Indianapolis is $209,983, while Fort Wayne is slightly higher at $220,000. The two largest cities in Mississippi are Jackson, where the median home sale price is $96,333, and Gulfport, which touts a median home sale price of $197,650. Homes in Jackson, for example, typically range from $20,000 for a fixer-upper to over $3 million for an extravagant mansion. That’s because mortgage interest rates have climbed much higher over the past year and the average sales price remains out of reach for many prospective purchasers. But if you look closer at the cheapest states to buy a house, you may find a market where you could find a bargain.

Cheapest ZIP Codes for Housing in Every State

Looking for Your Forever Home? These Are the Best Cities to Buy a House in America - Martha Stewart

Looking for Your Forever Home? These Are the Best Cities to Buy a House in America.

Posted: Wed, 10 Aug 2022 07:00:00 GMT [source]

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. “Buyers should consider broadening their home search to more affordable areas. Or, instead of moving out of state, explore looking for a home in an adjacent county where homes may be less expensive,” Evangelou recommends. That projected return of over 9 percent in the first year alone is among the best in the study, but that could just be a symptom of how buying a home in Tennessee is often a pretty solid investment.

Pennsylvania offers a diverse range of cities and rural areas, making it suitable for various lifestyles. With a rich history, vibrant culture, and affordable home prices, it presents an attractive option for homebuyers. Additionally, the state provides excellent educational institutions and a strong job market. The right choice will depend on your needs, lifestyle and individual goals. If price is one of the factors that will determine the home you buy and the area you purchase it in, don’t just make your decision based on home price. Consider homeowners insurance, property taxes and the area’s cost of living, too.

Working with an adviser may come with potential downsides such as payment of fees (which will reduce returns). There are no guarantees that working with an adviser will yield positive returns. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest. When you’ve done your research, created a budget and weighed the pros and cons, you’ll have better prepared yourself to buy a house. When you’re ready, get started on an application today and take one step closer to homeownership. We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.

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. Ask Muoki Musau, a Realtor with Houwzer, and he’ll tell you that the biggest influences on affordability are the state’s economy, wages, and unemployment rates. Parkersburg is a great buyer’s market for its area, and the low listing price is a clear indication of why West Virginia is one of the states where millennials can actually afford to buy a home.

These programs also tend to offer down payment and closing cost assistance, usually in the form of a loan with favorable terms and conditions. State-level programs specific to first-time homebuyers — or other homebuying programs that are available to eligible first-time homebuyers — were a key factor in our study. But since these programs were considered along with 11 other factors, it was not an end-all-be-all in deciding whether a state is one of the best for first-time homebuyers. The offers for financial products you see on our platform come from companies who pay us.

It’s important to note that affordability factors can vary widely and our list is based on the median sale price in the 10 cheapest states to buy a house. We have also included some general metrics and the median days on market to give you a better idea of how active the real estate market is in each particular state. Property appreciation and growing rental income are strong indicators of a state’s need for housing.

Housing Market Predictions For 2024: When Will Home Prices Be Affordable Again? - Forbes

Housing Market Predictions For 2024: When Will Home Prices Be Affordable Again?.

Posted: Thu, 25 Apr 2024 16:49:00 GMT [source]

With affordable housing options, a low cost of living, and a warm community spirit, Kentucky provides an inviting atmosphere for homebuyers. Thinking about buying real estate, either as a primary residence or investment property? The capital, Charleston, offers a variety of homes between 1,000 and 3,000 square feet under $150,000.

With major cities like Cleveland, Cincinnati, and Columbus towering in our minds, it is hard to imagine reasonably priced homes in the state. 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.

Nationally, home prices have declined by 1.3% since their peak in June 2022. Regionally, the majority of housing markets are expected to see price drops toward the end of this year. For prospective buyers and current owners, this could signal opportunities to make the most of the housing market.

Homebuyers can expect to pay roughly $2,700 in closing costs (third-lowest). Homeowners can expect to pay under $1,400 in property taxes (eighth-lowest). This is the second year in a row Indiana has made our list of cheapest states to buy a home and is the top Midwestern state for affordability in 2024. At $62,743, its median household income is the highest on the list, but still below the national median, which was $74,580 in 2022, according to the census. If you’re interested in buying a house in the Hoosier State, check out homes for sale in Indiana.

In addition to the Hoosier State's low cost of living, the state is full of friendly people, has a relatively low crime rate, and offers four-season weather. It's all about getting out there and appreciating each season as it arrives. Homebuyers come to the state for its overall affordability, welcoming people, access to the Appalachian Mountains, and outdoor activities such as hiking, whitewater rafting, fishing, skiing, and more. 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.

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. When you’re looking in markets where the sellers are fighting for you, it can mean getting a better deal on a place that will make you and your family happy for some time. Pendleton has modest home prices with a strong livability score and decent projections for growth in home value.