Hunting for an affordable house? You might want to consider these states
Homebuyers aiming to get houses that won’t break their bank may find some states are home to less-expensive properties than others.
A recently-released analysis from Redfin found Iowa stood at as the state offering the most affordable homes, based on the median price that properties have gone for in March.
The four other states that appeared among the top-five for home affordability were located in the Midwest, Mid-Atlantic and South-Central regions of the U.S.
All five have seen sale prices significantly lower than the $428,000 national median, according to the real estate company.
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Redfin said the top-five states with the most affordable homes included:
Homes in the Hawkeye State are being bought for a median of $227,500, helping it earn its No. 1 spot on Redfin’s ranking. More than 3.2 million people call the state home, according to an estimate by the U.S. Census Bureau.
Ohio is the second-most affordable state when it comes to getting a home, with Canton, Youngstown and many other Ohio locales seeing affordable prices, per Redfin. The real estate company pegged the state’s median sale price at $231,400 and its median monthly housing payment at $1,472.
Redfin said Oklahoma ranked No. 3, with homes there selling for a median $236,700.
The Mountain State boasts a median sale price of $243,100, according to the analysis. It derives its nickname from the well-known Appalachian Mountains that run through it.
Households in Michigan earn a median of $71,149, Redfin reported, citing the U.S. Census Bureau. Its No. 5 spot for buying a home is thanks to its $248,000 median sale price.
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Mississippi, Missouri, Louisiana, Indiana and Arkansas were the five other states that Redfin ranked among the 10 cheapest when it came to homes.
Meanwhile, with homes going for a median of $785,200, California earned 50th place on the ranking, meaning it was the priciest state, the analysis found.
Some Americans have had difficulty purchasing homes in recent years amid the housing affordability crisis that the U.S. has been contending with.
Last month, a survey released by Bankrate found 81% of Americans "who have owned a home in the past or never owned a home but want to some day" called down payments and closing costs a "significant obstacle" to getting a place.
About 76% of aspiring homeowners estimated the amount of time it will take them to sock away sufficient funds for a house down payment at one year or more, according to Bankrate.
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Many U.S. adults — 75% — still consider homeownership to be a component of the American Dream, Realtor.com found in a separate January survey.