Costs connected with maintaining a home can differ greatly from one city to the next due to factors like taxes, utilities, and other fixed costs. Finding the least expensive state in which to buy a home can be challenging for a number of reasons. Some areas may have more costly housing prices, although this is often balanced out by salary disparities.
What characteristics make a state exceptional?
Not all investors will agree on which state is ideal for purchasing a rental property, but there are a few common criteria that are used by the majority of investors.
Increasing home prices and general market growth: Investing in reasonably priced rental property will help you maintain a steady flow of income and increase your equity, both of which will increase your long-term earnings.
Rising numbers of people who need homes, year after year: Growth in the job market and employment opportunities attract people and companies to one state over another. Occupancy rates for rental properties provide an indication of the proportion of available units that are unoccupied in any given market.
An increasing proportion of renter households is indicative of a housing market’s attractiveness to renters due to variables including housing affordability, lifestyle choices favouring renting over owning, and growth potential.
Cheap property tax rates in the states are a major factor in the low cost of living and strong cash flow from real estate investments that are common in these states.
Most Affordable Housing Markets
Kansas
In terms of the percentage of median family income needed to buy a house, Kansas and Nebraska are tied for fourth. On the other hand, Kansas is known for its affordable housing options. In this state, the average price of a house is $151,900. Kansas is jokingly called the “breadbasket of the United States” because of the state’s extensive wheat fields and high grain output. Major metropolitan areas in Kansas include Kansas City, Wichita, and Topeka.
Houses cost an average of $151,900
Monthly Mortgage Payment (estimated): $721.70
Nebraska
The median mortgage payment in Nebraska is $740.22, which is only 11.19 per cent of a household’s income. The median home price in the state is $156,000. Nebraska’s reputation as the “Cornhusker State” suggests that the state’s agricultural economy is heavily dependent on corn. The state is known as the “Beef State” because of its thriving cattle sector. Omaha and Lincoln are the two major cities of Nebraska.
The Average Price of a House in the United States is $155,800.
The Typical Monthly Mortgage Payment is $740.22
Ohio
Third on our list is another state from the Midwest: Ohio. To own a home in the Buckeye State, one needs only eleven per cent of the median salary. The median price of a home in today’s market is $145.7,000. Ohio has a lot going for it, being the birthplace of the Wright Brothers and the location of the Rock and Roll Hall of Fame. Most Ohioans root for either the Cincinnati Bengals, the Cleveland Browns, or the Ohio State Buckeyes in American football.
Average Cost of a House: $147,000
A mortgage payment of $692.24 per month is estimated.
Indiana
With a median house price of $141,700, Indiana ranks second. In Indiana, the required down payment is merely 11.03 per cent of the median income. The anticipated mortgage payment is somewhat more than $670 per month. Indiana, like many other Midwestern states, is mostly flat and used for farming. Large urban centres include Indianapolis, Fort Wayne, and Bloomington, and the state is home to prestigious educational institutions including Purdue, Ball State, and Indiana University.
The cost of a Typical Home in America is $141,700
Mortgage Payment ($673.23/month) Estimated
Iowa
We found that the cheapest housing in the United States was in the state of Iowa. Only 10.6 per cent of the median salary is needed to own a home in Iowa, making it one of the most affordable states in the country. The average price of a home here is about $147,000.
This state in the Midwest is responsible for more maize being grown in the United States than any other, and the vast stretches of farmland there attest to this fact. However, there are also several large urban centres to choose from. Des Moines, Iowa City, and Cedar Rapids are among the state’s most active real estate markets.
The National Average Household Spending in 2016 Was $147,800
Loan Payment Projection: $702 per Month