The largest cities in the United States—New York, Los Angeles, Chicago, Houston, and Phoenix—might have a high median annual income, but they also have very high median home prices. To get the final ranking, SmartAsset analyzed each state on the following criteria: average effective property tax rate, median listing price, median listing price per square foot, median home value for the bottom one-third of homes, and average closing costs. But with the cost of living on the rise across the US, tracking down affordable real estate can be a challenge. We sell cheap houses and our prices start from $4,999 only! Though itâs not the easiest task for an investor to find properties that are affordable and perform well at the same time, itâs definitely possible and worth the effort. Shutterstock. You should only invest your money in locations where investment properties can generate a good cap rate and good cash on cash return. Although you may not be situated in an urban centre or your home could use a little TLC, there's no denying the attractive price tags on these 12 properties in various parts of the country. What is different about this year so far is that prices are not rising as quicklyâ. There are four main reasons why. It has been a popular tourist destination for many years and has a growing population, which has expanded an extraordinary 6.8% between 2010 and 2015. With low Kansas housing prices and the decent $53,444 median income, just 2.77 years’ worth of income would buy a home outright, which makes Kansas one of the most affordable states to buy a home this spring. Also, according to the Iowa Association of Realtors, âhigher wages and favorable mortgage rates have been a terrific driver of housing stability in recent years. So, if youâre thinking of buying a cheap house for investment in West Virginia, you wonât be disappointed. Moreover, the property tax rate in Alabama of 0.42% is the second lowest in the country! Account active Employment. Rankings. In San Francisco, the median home costs more than $1.3 million.In New York City, it goes for nearly $700,000.Even the … West Virginia is not only the cheapest state to buy a home, but it’s also ranked number 6 for the cheapest land in the U.S. While the real estate market remains hot, it's possible to find some serious bargains out there. Before we start the list, we need to make one thing clear: while cheap real estate is attractive for getting into real estate investing, price alone does not guarantee high returns. Note that due to insufficient data, Delaware and Louisiana were not included in this study. There’s a catch of course: … Furthermore, the low cost of living, low home remodeling costs, and good quality of life are attractive variables to home flippers. If so, sign up to Mashvisor and use our tools to find and analyze profitable investment properties in your cities and neighborhoods of choice in a matter of minutes! Veterans Home Buying Guide; Real Estate Videos ... abs and a killer tan than owning their own piece of beachfront real estate—aka ... prices for the 12-month period of May 2018 to April 2019. If you’re on a budget but still want to buy, Money examined the data to see which states are the cheapest places to buy a home in— and which places you probably can’t afford to live in. Yet, housing inventory throughout the state is low which means you may have limited options for investment properties. South Carolina. 2020 Best Cities to Buy a House in America About this List Explore the best cities to buy a house based on home values, property taxes, home ownership rates, housing costs, and real estate trends. Besides being the most affordable housing market in 2019, West Virginia has a property tax rate of 0.59% which is one the lowest in the country according to WalletHub. However, while data indicates that itâs a buyer’s market, real estate investors should be careful and do their research before buying a house in Louisiana as the state is known to experience unpredictable fluctuations. So do you want to buy a home for under $150,000? The Midwest real estate market has been experiencing an increase in interest among real estate investors. After thorough research, we have found 20 states in the US housing market that have a median house price below the national price. New Mexico: $101/square foot, $315,000 average price 6. Besides being an affordable market, Indiana is also one of the most landlord friendly states in 2019 and has a low property tax rate of 0.87%. So, even though itâs a seller’s market, there are still excellent investment opportunities for buyers as well. This will help you choose the ideal investment strategy that will work for both the location and the property itself. You can start using this tool right now with a free Mashvisor account! Arkansas, $93/square foot, $183,000 average price 2. A roundup of uplifting stories about everyday heroes. Median list price per square foot: $110.90. T9. The average property tax rate of 1.01% is relatively low which is good news if youâre considering out-of-state real estate investing to reduce your tax costs and expenses. On the other side of the coin, some of the most expensive states to retire in include California, New York, Oregon, Washington, and most states in the New England area -- … State: West Virginia. ... Real Estate. While itâs often a forgotten Southern state, it has a rich history, natural resources, and a steadily improving economy which makes buying real estate here a solid investment. Looking at the median price and comparing it to the national median, youâll realize Indiana is actually among the cheapest states to buy a house for investment. All of this shows us that Oklahoma is a top location for real estate investors looking for profitable investments over the long-term! Read more: The 50 best suburbs in America, ranked. A Californian would need 7.3 times the state's $60,487 median household income to buy a home at $440,000, the median Zillow listing price of homes in the state. Every item on this page was hand-picked by a House Beautiful editor. Meaning, if you find a cheap house for sale but itâs not in a good location for making money in real estate, then forget about it. To learn more about us, click here. Where Do You Find the Best Dallas Investment Properties at the Beginning of 2018. real estate 12 Cheapest Small Towns in America Affordable small towns aren't necessarily the best places to live for everyone, but each cheap small town on our list has its charms. Missouri. Buying a home seems incredibly expensive these days, with decent houses reaching over $250,000. The cost of living and property tax rates in Mississippi are also some of the lowest in the country. since. So, to find the best opportunities, start your property search now! The results of this analysis offer a pretty diverse range of options in a multitude of states across the nation. A lot of this growth is due to Florida’s robust economy. If youâre among the many investors on a budget and donât have the liberty to take risks on expensive real estate, donât let this information discourage you from buying an investment property in 2019! If you havenât been following the stateâs revitalization, then you probably didnât expect to see Michigan on this list. West Virginia. Real estate prices here are among the most affordable in the country. 10. 1. Youâll notice that Mashvisorâs data includes the estimated returns for both traditional and Airbnb rentals. Here are the best cities to look in. Visit Business Insider's homepage for more stories. Besides the fact that youâll find cheap homes for sale here, the housing market has seen steady growth since the recession and is expected to keep growing at a sustainable pace. Contact. Furthermore, Wisconsin home prices are expected to increase â but only slightly! more and more millennials are heading to the south, The 10 most difficult places to invest in real estate in the US right now, The 10 best places in the US for first-time homebuyers to invest in real estate right now. Eman also writes about trends, forecasts, and tips for beginner investors to gain the confidence and knowledge they need to make wise decisions. The state’s leading job industries include automotive, aerospace, m… Use our Investment Property Calculator to analyze investment properties in Louisiana and see their projected returns to be safe in the long run. While it’s often a forgotten Southern state, it has a rich history, natural resources, and a steadily improving economy which makes buying real estate here a solid investment. You just need to know which the cheapest states to buy a house for investment are. This further proves that if youâre looking to buy cheap investment properties in 2019, Iowa is one place to consider. Hawaii and Rhode Island are the only states where no county has a median home value below the national median of $235,000. While investment properties here arenât as cheap as other states on this list, the median price is below the national median. as well as other partner offers and accept our. Arizona’s economy is quite stable and we can safely say that its job market is pretty healthy when compared to other states in the US. West Virginia: $101/square foot, $228,000 average price 4. Where? Home prices have skyrocketed in the last few years, leaving many Americans wondering if they will ever be able to afford buying a house. Best known for the Grand Canyon and its sunny weather, Arizona will give you a taste of the true southwest. Existing Home Sales Up 21% in June Amid... No US Housing Bubble Crash in Sight, Expert... How to Calculate the Rate of Return on a Rental Property. Another reason for real estate investors to buy Missouri homes for sale is that the state is landlord-friendly and gives you the option to rent out your property traditionally or on Airbnb for a great return on investment. Nebraska is also one of the 10 best states to live in 2019 according to US News and World Report! Related: 8 Best Cities for Airbnb Investment in 2019. Ranking based on data from the U.S. Census, FBI, and other data sources. Despite being relatively small, Iowa is one of the best states to invest in real estate in 2019. It is still possible to buy a home in the United States for less than the two-year appreciation on that $500,000 house. The demand for single family homes has been on the rise in the Sunshine State for quite some time. The Kansas housing market is doing well. Due to its overall low cost of living, Oklahoma is currently one of the cheapest states to buy a house in the US. However, inventory in Kansas has been low so far in 2019 which is why competition is fierce in the market and home prices are expected to see another increase. The cheapest state to buy a home in is once again West Virginia. Using Mashvisorâs Investment Property Calculator, we list data and analytics regarding what kind of profit you can expect from investing in each of the cheapest states to buy a house. The 10 cheapest states to buy a home in right now. Also, when comparing states based on Mashvisorâs data, youâll notice that Ohio has the highest Airbnb cash on cash return. This tells real estate investors that the rental market in Wisconsin is doing well. Eman is a Content Writer at Mashvisor. Not only does it offer cheap investment opportunities, but it has a low unemployment rate of just 2.4% and a booming economy. You can read a full breakdown of the methodology here. Unprecedented prices! The current Alaska real estate market is neutral and shows a healthy supply vs demand which could be beneficial to both buyers and sellers alike. After weighing each metric equally, SmartAsset found the average ranking for each state. Should You Invest in the South Carolina Real Estate Market 2019? And, given that more and more millennials are heading to the south, it may come as no surprise that all of the states that made the top 10 are located in the south or the midwest. Based on research, weâve listed the 20 most affordable real estate markets in 2019 with a brief description to help you decide where to invest. ... 2019. 1) Detroit, Michigan. In fact, it seems that rising home prices have done little to dampen investor demand as, according to The Wall Street Journal, real estate investors are buying more of the US housing market than ever before. The Sunshine State has consistently been one of the best states to invest in real estate since the ’08 market crash. The cheapest land in the Natural State can be found in Clay County, nestled in the northeast corner of Arkansas, where land sells for around … Itâs a quiet state that also thrives in terms of low crime rate and good medical care, making it one of the best places to retire in 2019. Indiana: $96/square foot, $250,000 average price 3. Itâs also very landlord-friendly and quickly growing both in popularity and development. Median list price per square foot: $110.90, Average effective property tax rate: 1.54%, Median list price per square foot: $131.25, Average effective property tax rate: 0.55%, Median list price per square foot: $122.22, Average effective property tax rate: 0.95%, Median list price per square foot: $118.96, Average effective property tax rate: 0.85%, Median list price per square foot: $109.22, Average effective property tax rate: 0.84%, Median list price per square foot: $106.17, Average effective property tax rate: 0.89%, Median list price per square foot: $95.75, Average effective property tax rate: 0.78%, Median list price per square foot: $103.38, Average effective property tax rate: 0.40%, Median list price per square foot: $101.19, Average effective property tax rate: 0.61%, Median list price per square foot: $98.38, Average effective property tax rate: 0.57%. Here are the ten cheapest states to buy a home based on home prices. In turn, this has a positive effect on the housing market. On top of great cash flow, values are on a… Next up on the cheapest places to buy a house for investment in the United States is Missouri. Sign up for Insider Life. Methodology: In order to find the cheapest places to buy a home in every state, GOBankingRates looked at every city in each state with a population over 30,000 (10,000 in select states due to low population or limited data availability), as sourced from the U.S. Census Bureau’s 2018 American Community Survey 5-year estimates. What’s the Best Airbnb Analytics Platform for 2019? Still, it’s possible to acquire fully renovated properties in good Florida neighborhoods for under $193,000. Note that, among these places, several counties appear more … If youâre interested in learning where the cheapest places to buy a house in the US are, just keep reading. Next up on our list of the cheapest states to buy a house in 2019 is Arkansas. Home values are typically a … The report shows that Alaska has a 24% likelihood of home price declines. Southern and Midwestern comforts.According to Census region and division delineations, seven of our top 10 states are in the South and three are in the Midwest. West Virginia also ranks first for its low median value of the bottom third of homes, at $53,600. Stay up to date with the latest tips for Traditional & Airbnb Investments, 20 Cheapest States to Buy a House for Investment in 2019, US Housing Market Forecast 2019 and Beyond: What You Need to Know, most affordable real estate markets in 2019, 8 Best Cities for Airbnb Investment in 2019, The Missouri Economic Research and Information Center, The 5 Hottest Cities in the Midwest Real Estate Market in 2019, The Texas Real Estate Market 2018: Interview with Agent Jenna Hernandez, Best Cities to Flip Houses for Profit in 2020. According to Zillow, as of April 2019 the median price per square foot is just $1.22 for a home in West Virginia, with an average size of 60,992 square feet. Joplin is home to the lowest real estate prices in the country—a four-bedroom home will cost you a little over $200,000. You should never sacrifice your return on investment for the sake of cheap properties! But itâs true â many cities in Michigan, even large ones like Detroit, have a low cost of living as well as extremely affordable homes for sale! A collection of super cheap houses from around the U.S.. Even with these great conditions, Ariz… However, in the 2019 Housing and Mortgage Market Review, Alaska topped the lists as the second state with a high probability of home prices declining in the coming two years! According to the Louisiana Economic Outlook, the stateâs economy is looking better by the day with more jobs now being added at an impressive pace. Related: US Housing Market Forecast 2019 and Beyond: What You Need to Know. And, according to Kentucky Realtors, the state is still running on strong sales activity and increasing home values. Many cities in Tennessee enjoy high appreciation rates and home values are expected to increase in 2019. So, if youâre wondering where the best places to invest in real estate on a budget are, Arkansas should be on your list of locations to consider. These states have the lowest cost of living and the most-affordable housing. With a focus on market reports, she enjoys researching the state of the real estate market in different cities across the US. Those looking to save a few bucks can head west of town, toward the Washington state border, and get a house on the Priest River for about $600,000—or significantly less. 360 Reviews. Ever Consider Investing in Gatlinburg Real Estate? So, if youâre looking for where to invest in real estate for Airbnb in 2019, Ohio is definitely a top location to consider. South Dakotaâs housing market has been on the up and up and will likely continue this trend in 2019. Wisconsin has one of the hottest housing markets in the country right now. Massachusetts was rated the most expensive place in the U.S. to buy a home. Median list price: $180,000. Now that you know how to find affordable properties for sale, letâs discover where you should be looking for them. And while experts predict a cool down in the US housing market this year, prices are not expected to drop any time soon â theyâre just rising at a slower rate. Unless you’re buying a tiny house, it’s not often you can snag a home for less than six digits. These Are the Best Cities for Airbnb Investment 2018, Raleigh Real Estate Market 2019: A Great Place to Invest, Traditional Rental Strategy: Go for These Cities for Cap Rate, The Most Affordable Neighborhoods to Buy Property in the Most Expensive Cities, Buying an Investment Property 2018: The Highest Price to Rent Ratio Markets in California, 6 Reasons to Buy Minneapolis Real Estate Before 2019, Why and Where to Invest in Denver Real Estate 2018, Best Multifamily Investment Markets 2019: 5 US States. An extended lack of inventory over the last three years has contributed to fewer homes bought in 2019. This shows you that there are still money-making opportunities in real estate which you should not miss out on. 21 Cheap Old Houses You Can Buy For Under $25,000. For starters, Florida’s population, already situated as the third highest, is expected to increase. According to Realtor.com, the national median price of homes listed for sale in the United States is $310,000 which is a 7% year-over-year growth. As more people are relocating to Illinois, investors are turning their eyes to this state as well. According to the Indiana Association of Realtors, the median price of homes for sale in the state grew by 4.2% last year and is expected to keep growing in 2019 and outperform the national average. While these real estate analysis metrics depend on the property and how you buy it, the real estate market heavily influences them as well. This makes Illinois among the cheapest states to buy a house for investment as buyers have multiple options to choose from and the upper hand in negotiation. The city of Detroit came in as the cheapest market to buy a home. Back in the 1960s, the median price for a home was $11,900, or $96,681 when adjusted for inflation, Business … Fortunately, not every state's housing market is as out of reach as, say, California's, where major markets show trends of competitive prices and low inventory. Michiganâs low median price has been attractive to flippers and, according to MichiganRadio.org, homes are flipping faster in the state relative to the rest of the US. Average effective property tax rate: 1.54%. They might be haunted but I don't even care. It’s worth noting that the national average home price fell sharply in mid-2019, down to just $227,000, from $280,000 according to Business Insider. When it comes to investing in the cheapest states to buy a house in 2019 for appreciation, Alabama is a good candidate. Buying a rental property in Florida, for traditional or Airbnb investing, will remain a profitable investment in 2019. Both the affordability and profitability of Tennessee investment properties make it an ideal location for any real estate investor, seller or buyer. Wondering where the cheapest place to buy a house in the United States is? By clicking ‘Sign up’, you agree to receive marketing emails from Business Insider Beautiful natural areas and rich history are not the only things this state has to offer. Some would think this means Indiana homes are expensive, but thatâs not the case! Median prices have been rising steadily, but the increases aren’t as large as they are in other parts of the country. Ever wonder about the cheapest place to buy a house in Canada? To start looking for and analyzing the best investment properties in the city/neighborhood of your choice, click here. West Virginia is your answer. Another good reason to invest in property here is that property taxes are among the lowest in the country â only 0.63% according to WalletHub! West Virginia is the cheapest state to buy a home in America. Not only is Mississippi one of the cheapest states to buy a house in the US, but real estate investors here also enjoy a landlord-friendly environment. Keeping reading to see a list of the top 10 cheapest states to buy a home right now. The median listing price in the Mountain State is $165,000 – the lowest median price in the study. Nebraska is one of the best states to invest in real estate for many reasons. 1. According to The Missouri Economic Research and Information Center, the state has the 4th lowest cost of living and an unemployment rate of 3.2% which is below the national average. As you can imagine, this is causing rental rates to rise (over 6% in just a year) and is expected to keep increasing in 2020. Airbnb Occupancy Rate Up 13% as Market Recovers. See our unbeatable deals inside & find cheap houses for sale today. Not in any particular order, here are the top 11 cheapest places in the US to buy a home. Coastal states, such as Massachusetts and California, comprised the majority of the top ten most expensive places to buy a home. The 10 Most Affordable Places to Buy a Mountain House The tool will then give you a list of homes for sale in that location that best meet your criteria along with data that projects how well they would perform as investment properties. Do you know which of these cheapest states to buy a house for investment you want to invest in? We may earn commission on some of the items you choose to buy. So, if youâre looking to invest in real estate here, we suggest you start looking for an investment property for sale now! Buying a home isn't usually cheap. The good economy, growing job market, and low unemployment rate are the main reasons why thereâs an influx of people coming into Nebraska, increasing the demand for housing.