Not Michigan, not West Virginia: This is the cheapest state to buy a house in the U.S.
Buying a home in the U.S. is expensive, but if you know where to look, you might be pleasantly surprised: this is the cheapest state to buy a home.
Buying a home in the United States can be extremely expensive, especially in states like California, Florida, or New York, where the average property price can exceed one million dollars. However, if you look closely, you may be pleasantly surprised: there are several regions where the average home costs just over $200,000.
According to an analysis by Home Buyer, a home’s price depends largely on its location, though other factors, such as size and age, also play a role. As a prospective buyer, however, it’s important to consider more than just the sticker price—household income and the cost of living are equally crucial.
In this context, the analysis identified Iowa as the most affordable state to buy a home in the United States in 2025. Here’s why.
The Homebuyer report shows that the median home price in Iowa in 2025 is $258,200, while the median household income is $71,433, making it the cheapest state to own property. To put this in perspective, an Iowa family would need to spend roughly 2.3 times more of their income to buy a home in a state like California.
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Following Iowa, North Dakota ranks second, with a median home price of $307,800 and a median income of $76,525. Indiana comes in third, with a home cost-to-income ratio of $283,000 to $69,477. Delaware and Michigan round out the top five, with ratios of $379,900 / $81,361 and $280,000 / $67,769, respectively.
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