Cheapest Housing in the States: Where to Find Real Deals

• by Corbin Fairweather
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The dream of owning a home is easy to give up on—especially if you live anywhere with endless zeroes in the price tag. But the truth is, not every city or state plays by the same expensive rules. There are whole regions of the country where a mortgage payment can cost less than rent for a cramped apartment in bigger cities. The trick is knowing where to look—and why these places are dishing out deals that seem too good to be true.

Start with the obvious: location shapes price more than almost anything else. Think quiet rural towns, or former industrial cities where factories shut down years ago. These spots might not be on every influencer’s bucket list, but they offer real homes for way less. In some towns, you can find solid three-bedroom houses for less than the cost of a new SUV.

Here’s where things get interesting. Cheap doesn’t always mean run-down. Some of these areas are seeing new faces and businesses show up, dragging prices up over time. Other towns stay cheap because jobs are scarce or the local economy never bounced back after the last big crisis. You have to weigh the low price against things like job opportunities and quality of life.

• Why Housing Is So Cheap in Some States
• The Top 5 States for Bargain Homes
• Hidden Gems: Small Towns Worth a Look
• Real Price Examples and What You Get
• Tips for Snagging a Cheap House
• What to Watch Out for When Buying Cheap

Why Housing Is So Cheap in Some States

Ever noticed how a house in Detroit can go for the price of a crusty old sedan, while out in California you're barely getting a shed for half a million? That’s not just random luck. It comes down to a mix of jobs, population trends, local economies, and even plain geography.

The basics are supply and demand. If people are leaving a place—maybe factories closed or there aren't enough good jobs—prices fall. Fewer buyers means less competition. On top of that, some states just have loads of land and fewer zoning rules. In places like Mississippi or Ohio, it’s way easier (and cheaper) to put up a new house, so prices never get out of hand the way they do in tight, crowded cities.

There’s a big difference in median home prices across the country. Take a look at the average numbers from early 2025:

You can see where the cheap houses actually are—it’s not just rumor. But keep in mind, there are reasons behind these prices:

• Local Job Market: States with fewer high-paying jobs usually have lower home prices.
• Population Growth: Areas that are losing people tend to see falling prices.
• Cost of Living: Cheaper overall living costs usually means cheaper housing.
• Old or Overbuilt Housing Stock: If there’s an oversupply (too many houses for not enough buyers), you’ll find deals.

One other big factor: taxes. States like Texas have no income tax but crazy property taxes, while others keep it low across the board. That changes the math for what you really pay in the long run. So cheap up front can be not-so-cheap if you’re not careful.

The Top 5 States for Bargain Homes

If you’re searching for the cheapest places to score a house, you gotta look where the price tags make you do a double-take—in a good way. Some states keep popping up on every list, and it’s not just talk. The numbers back it up. A few places stand out for their seriously low average home prices, making them go-to spots for anyone chasing affordable housing.

• West Virginia: Year after year, West Virginia sits at the top for lowest median home price. Housing prices have stuck around $155,000 as of early 2025, according to Redfin data. In some towns, you’ll find homes under $100k that are move-in ready. Low property taxes and rolling hills don’t hurt, either.
• Mississippi: Here, the average home price sticks around $165,000. Jackson and smaller cities like Vicksburg give buyers the most bang for their buck. The state isn’t seeing wild population growth, which keeps things affordable.
• Ohio: Don't skip Ohio. With a median house price under $200,000, you can actually afford a place in cities like Toledo, Akron, and even certain neighborhoods in Cincinnati. There’s a solid mix of urban and small-town vibes.
• Arkansas: In Arkansas, $180,000 will still get you a three-bedroom home in many neighborhoods. Smaller towns have even crazier deals. Plus, lower insurance and taxes help keep monthly costs down.
• Iowa: The average home price hovers around $210,000—not the absolute cheapest, but still a steal compared to most coasts. Small cities like Waterloo and Des Moines offer affordable options, plus job growth is steady, so you’re less likely to feel stuck.

To give you a clearer picture, here’s a rough breakdown of 2025’s median home prices in these bargain states:

Keep in mind, these prices are averages—some small towns may have even sweeter deals, especially if you’re okay with a fixer-upper. While you’re comparing, remember that the cheap houses in these states usually come with way lower property taxes and insurance, helping your budget stretch even further.

Hidden Gems: Small Towns Worth a Look

If you're serious about finding affordable housing, small towns are where you start to see just how far your dollar can stretch. These places aren't just backroads and empty lots—many have real communities, schools, and often more character than you'd guess. Some of the best deals hide away from the big city lights, right in towns you probably never thought to look up.

Take Coffeyville, Kansas, for example. Homes there regularly go for under $60,000, and you’ll even find some listed at half that. This isn't a fluke. According to data from Realtor.com, the average list price in June 2025 hovers below $70,000. Even in 2024, the numbers barely nudged upward. Over in Johnstown, Pennsylvania, you’ll spot roomy houses in move-in condition for around $50,000. And if you head down south, Pine Bluff, Arkansas, is yet another standout—buyers here report grabbing three-bedroom homes for less than $85,000 as recently as this spring.

"You can find a whole house in some of these small towns for less than the cost of a parking space in San Francisco," says David Stevens, a real estate analyst at HousingWire. "But don’t wait forever; more people are catching on."

Why are these towns so cheap? Here’s the quick rundown:

• Remote locations mean less job competition, but also less demand.
• Local economies either never boomed or are still bouncing back from decades-old downturns.
• Younger folks moved out for jobs, leaving behind more housing than buyers.

But cheap doesn’t always mean risky. Some towns with low home prices also have steady schools, decent hospitals, and even growing small business scenes. You just have to know what you’re diving into. Here’s a look at recent average home prices in a few of these hidden gems:

If you’re on the hunt for cheap houses for sale, dig beyond just zillow’s front page. Local listings, town Facebook groups, and even old bulletin boards sometimes have the unlisted gold nobody else is seeing. Don’t underestimate a good drive around—Elara and I once spotted a "for sale by owner" sign on an evening stroll, and by the next week, it already had two offers. The secret’s out, but there are still deals for folks who look where others skip.

Real Price Examples and What You Get

If you’re searching for cheap houses in the U.S., the numbers can surprise you. Let’s look at what your dollars can actually buy right now as of mid-2025. Prices change often, but these are based on reliable data from national listings and recent home sales in affordable states.

Here’s a snapshot of average home prices and examples in five of the cheapest states for housing:

So what’s the catch? Most homes at these prices are outside big metros. Some need repairs, but most are totally livable straight away. You’ll usually get a bigger lot, more bedrooms, or even a garage—things that would cost you double or triple in places like California or New York.

Don’t just skim the price. Check for property taxes, insurance, and whether there’s an HOA fee. Small towns might have fewer services or less nightlife, but you get way more home for your money.

And here’s a tip you won’t hear on TV: look at county websites for foreclosures or special auctions. Homes sometimes sell there for less than half the market price because banks want them off the books. If you’re okay with rolling up your sleeves, a fixer-upper through these channels can stretch your budget further than you thought possible.

Tips for Snagging a Cheap House

Getting a house for way less than the market average isn’t about luck—it’s about working smarter. Even if you don’t have a trust fund stashed away, you can get in the game if you do a couple of things right. Here’s what actually gets results:

• cheap houses often pop up in auctions and foreclosure sales. Check websites like Auction.com, HUD Homes, and even county courthouse listings. There’s less competition, but you’ve got to do your homework on what you’re buying.
• Look for homes sitting on the market for months. Owners might drop the price just to move on. Ask your agent for a list of these properties, or filter online searches to show homes that have been listed longest.
• Work with a local real estate agent who has dirt on unlisted properties or pocket listings. Some of the best deals never even get posted online.
• Consider homes that need a little work. Minor fixes like paint or new carpet can scare off casual buyers, but a little elbow grease saves you thousands. Just check for major issues like roofs or foundations before you commit.
• Look for deals in off-peak times. Late fall or winter, when fewer people are shopping, means sellers are often more desperate. You might snag a lower price just because the competition’s thinned out.

People always want to know if it’s worth jumping right in or waiting for the perfect deal. Here’s a quick look at how pricing really drops in overlooked spots:

Remember, closing costs and property taxes can hit harder in some states. Always ask your lender or agent to walk you through what you’ll pay on top of the sale price. Armed with these tips, you’re not just hoping for a deal—you’re narrowing in on one.

What to Watch Out for When Buying Cheap

Chasing the lowest home price might sound like a no-brainer, but it can come with some surprises if you aren’t careful. There’s a reason some houses and areas stay cheap—the problems aren’t always on the surface. Before you get excited and jump into an offer, pay attention to these real-world gotchas.

• Cheap houses often mean older homes. Think leaky roofs, ancient plumbing, or outdated electrical work. Even if the listing photos look fine, repairs can add up fast, sometimes costing more than what you saved initially.
• Location is everything. A rock-bottom price might come with high property taxes, expensive insurance, or super slow resale potential. Some of the least expensive places in America—like certain counties in West Virginia—have struggled with job losses, which keeps home values from climbing anytime soon.
• Look out for HOAs (Homeowners’ Associations). In some areas, monthly fees can be higher than the mortgage, and rules might be more headache than help.
• Vacant homes can come with hidden problems like mold or old damage that wasn’t fixed right. If a house has been empty for years, double-check for issues you can’t see, especially if you’re buying online or out of state.

Here’s what you should always do before buying:

1. Get a real inspection—don’t skip it to save money. An inspector should find things you’d never spot on a walk-through while giving you solid numbers for repair costs.
2. Research the neighborhood. See what’s going on with crime rates, school rankings, jobs, and local tax rates. A great deal can lose its shine if you realize there’s no grocery store within 30 miles or the job market is non-existent.
3. Consider resale value. If the low price is because everyone’s leaving town, you might have a hard time selling when you want to move on.

Bottom line: getting a cheap house isn’t just about paying less upfront. Protect yourself by checking every angle before you buy, so your bargain doesn’t end up costing way more than you planned.