Where Iowa, Minnesota, and South Dakota Homes Rank among Cheapest in U.S.
When it comes to buying a house, price is an important consideration but so is what impact the cost of that house has on your take-home pay.
HomeBuyer.com, using data from the Department of Housing and Urban Development and World Population Review, has compiled a list of the 'Cheapest State to Buy a House in 2022' based on house prices, mortgage payments, and what percentage of a homeowner's income is swallowed up by those payments.
After all of the numbers were crunched, only one state had a scenario where less than 11 percent of the average income was eaten up by house payments.
In the Hawkeye State, the median price of a home is $147,800, with a monthly payment of $702. That means the average Iowan allocates 10.6 percent of their income for housing each month, which is the lowest rate in America.
CHEAPEST STATES TO BUY A HOUSE (percentage of income to house payment)
- Iowa: 10.60%
- Indiana: 11.02%
- Ohio: 11.03%
- Nebraska: 11.09%
- Kansas: 11.19%
- Mississippi: 11.31%
- West Virginia: 11.31%
- Oklahoma: 11.64%
- Michigan: 11.73%
- Arkansas: 12.00%
Homes in South Dakota fell just outside the list of the top ten cheapest in America.
The median home price in the Mount Rushmore State is $167,100 with an average monthly payment of $793.91. That's 12.62% of average incomes in the state, which is 15th best overall.
Homes in Minnesota are 22nd in the nation, with a median price of $223,900.00 and an average monthly payment of $1,063.78. That translates to 13.71% of the average income in the North Star State.
As for the most expensive state to buy a house, there's no contest.
Residents of Hawaii pay a steep price to live in paradise.
The median home price in the Aloha State is $615.300, with an average monthly payment of $2,923.36, which eats up a whopping 35.13 percent of the average income.
In all, there are eight states where the average house payment will eat up more than one-fifth of your salary each and every month.
MOST EXPENSIVE STATES TO BUY A HOUSE (percentage of income to house payment)
- Hawaii: 35.15%
- California: 32%
- Oregon: 21.92%
- Washington: 21.2%
- Colorado: 21.1%
- New York: 20.53%
- Massachusetts: 20.49%
- Nevada: 20.34%
- Utah: 18.65%
- Montana: 18.23%