Finding the Cheapest Houses in the USA

Only one New York city makes this list. Kanjana Kawfang / Shutterstock

Finding a place to live shouldn't cost your life savings. This list of the cheapest houses in the USA highlights cities and states where you can buy a home without spending millions of dollars (or in some cases, not even hundreds of thousands of dollars).

If you're chasing affordable housing, low property taxes, and reasonable monthly mortgage payments, these spots deserve a look.

Contents

Birmingham, Alabama ($148,000)
Peoria, Illinois ($150,000)
West Virginia ($152,000)
Toledo, Ohio ($157,000)
Mobile, Alabama ($210,000)
Buffalo, New York ($232,000)
Amarillo, Texas ($250,000)
Kansas City, Missouri ($305,000)
Key Factors That Affect Affordability

1. Birmingham, Alabama ($148,000)

Birmingham pairs job opportunities in healthcare and finance with some of the lowest home prices in the South. The cost of living is low, and mortgage payments tend to be affordable compared to higher-priced markets.

Alabama also boasts low property taxes and affordable homeowners insurance, making it one of the most affordable states to buy a house in the country.

2. Peoria, Illinois ($150,000)

Peoria is a Midwest city offering housing affordability and a low cost of living. The median home price is far below national averages, and property taxes are balanced by affordable mortgage payments and insurance.

Compared to popular areas with higher prices, Peoria delivers value for home buyers looking to spend less without sacrificing city conveniences.

3. West Virginia ($152,000)

According to Zillow, West Virginia consistently ranks as the cheapest state for housing in the U.S. The median home price is well below the national average, and the cost of living is among the lowest in the country.

Affordable places like Beckley and Huntington attract buyers with low housing costs, low property tax rates, and lower homeowners insurance.

Compared to other states, the housing affordability in West Virginia allows more people to buy homes on a modest budget. It's a good fit for families and retirees looking to stretch their dollars.

4. Toledo, Ohio ($157,000)

With cheap houses and one of the lowest living index scores in the Midwest, Toledo is an excellent choice for buyers on a budget. The city offers affordable housing and modest property taxes. Median rent and home prices are both significantly lower than the national average.

Home buyers can find affordable properties in family-friendly neighborhoods while enjoying the benefits of living near a major metro area.

5. Mobile, Alabama ($210,000)

Located on the Gulf Coast, Mobile offers a blend of low housing costs and access to coastal living. The median home value in Mobile is among the lowest in the region, and property taxes are low

However, homeowners insurance costs in coastal Alabama tend to be high due to hurricane risk.

Buyers can find homes well below the national median price while still enjoying job opportunities and a moderate climate. Mortgage lenders in Mobile offer interest rates that generally align with national averages, meaning buyers have access to standard competitive financing options.

6. Buffalo, New York ($232,000)

Buffalo offers one of the lowest median home prices in the Northeast. Despite being in a state known for high taxes and higher home prices, Buffalo remains an affordable option for those looking to buy a house without breaking the bank.

The low cost of living and proximity to major job markets add to the appeal. The city is ideal for first-time buyers and anyone looking for low-cost housing in a region with rich history and culture.

7. Amarillo, Texas ($250,000)

Texas has some of the most affordable cities in the U.S., and Amarillo is one of them. With a low cost of living, Amarillo offers affordable housing options for a range of income levels, though Texas’s property tax rates are relatively high.

The housing market here is attractive to families, retirees, and anyone seeking a slower pace of life in an affordable region.

8. Kansas City, Missouri ($305,000)

Kansas City is a hidden gem when it comes to affordable housing.

The median home value is low compared to other cities, and many homes fall well below the national median price. Mortgage payments and property taxes here are relatively affordable for families earning the median household income.

Thanks to its stable job market and reasonable housing costs, Kansas City offers great value in both urban and suburban neighborhoods.

Key Factors That Affect Affordability

When looking to buy a house, it's important to review factors like mortgage rates, property tax rates, homeowners insurance, and the overall cost of living. Areas with low home prices and low housing costs tend to offer the most affordable living options.

Affordable housing isn't just about the price tag—it's also about your monthly mortgage payments, utilities, taxes, and the median household income in that area. Comparing these across states helps buyers find the right balance of budget and lifestyle.

We created this article in conjunction with AI technology, then made sure it was fact-checked and edited by a HowStuffWorks editor.