Which States Have the Most Affordable Homes? Answer: Red States.

Red State ^ | 04/27/2025 | Ward Clark

[SeekAndFind]

I've often written about how real estate prices have affected members of my own family. Of our four kids, two live in Colorado and can only afford to live in a nice, peaceful town well outside the troubled Denver area because they combine not two but three incomes. Our other two live in deep-red Iowa, in the same small town, where they are easily able to afford nice homes.

They have a lot of company. Realtor.com has just released its latest Affordability and Homebuilding report cards, and I should note that, while Colorado comes in at #27 with a grade of C in the report, Iowa is in third place for affordability with an A-. Colorado has a median listing price of $599,104 and a median household income of $90,555; Iowa has a median listing price of $294,600 and a median household income of $73,122.

A look at all the rankings is revealing. The three states with A ratings are red states: South Carolina, Iowa, and Texas. The next five in the ranking are Indiana, North Carolina, South Dakota, Nebraska, and Arkansas.

Seven states come in with an F listing: Oregon, Connecticut, California, Hawaii, New York, Massachusetts, and Rhode Island. Notice anything those states have in common?

Now, while Hawaii is a deep-blue state, one can see how it would be an expensive place to live regardless; it's an island into which everything has to be shipped, making everything more expensive. We have something of the same problem here in Alaska, which comes in at #43 with a C-. Stuff does cost more in the Great Land.

But the only reason the other states have? Overbearing liberal state governments.

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See Also: Washington's Governor Ferguson Commits Reparations Outrage

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 Here's how the people of Realtor.com - headquartered in Texas - figure the scores:

It has become harder and harder to become a homeowner, with high prices and mortgage rates remaining the unfortunate reality, and increasing the supply of homes is the clear solution. States have a clear mandate to address housing affordability, so we are assigning grades based on how they are doing now and how well they are addressing the future by building affordable homes. Our score is a weighted average of percentile ranks across two affordability metrics and two new construction metrics:

• REALTORS® Affordability Score: 25%
• Median earner’s share of income spent on median-priced listing (ranked low to high): 25%
• Permit-to-population ratio: 40%
• New-construction premium (ranked low to high): 10%

Supply and demand, as always, apply. Many of our (Democrat-controlled) urban areas and even states have onerous building codes and zoning systems. In some places the permitting process for even starting a new build is shocking; a few years back, I was working in Silicon Valley, and an engineer at the client company was describing me how it could take three to five years even to get clearance to break ground where he lived, in San Jose.

Apparently, knowing the way to San Jose isn't enough. You have to know the way through a labyrinth of permits and reports.

Needless to say, all this has a bad effect on housing prices; restrict supply, prices go up. This is Economics 101. The lesson is clear: If it's home ownership you crave, you'll get a lot more bang for your real-estate buck in a red state.

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TOPICS: Business/Economy; Society
KEYWORDS: affordability; homes; housing; realestate

[Jonty30]

I’ve seen properties in red states sell for $10,000 on real estate websites, not the houses.

However, I’ve seen houses and properties sell for as little as $30,000 on these same sites.

[E. Pluribus Unum]

More importantly, which states have the most affordable property tax rates?

[SeekAndFind]

RE: ’ve seen properties in red states sell for $10,000 on real estate websites, not the houses.

They’re probably in the middle of nowheresville.

[Jonty30]

You save on fences.

[38special]

Not Texas

[CFW]

My parents’ house (1270 sq ft) located in a red state sold for less that $240,000 (and that included 9 acres and a concrete floored shop) in 2023. That price was comparable to other homes in the area. The young couple that purchased are delighted with their new home and their toddler son is growing up in a rural environment where he can run around outside and play to his heart’s content. They plan to build on an addition and grow their family there.

There is a 20 to 30 minute commute to the largest town nearby with manufacturing, large retail, and academia jobs. Pay in that town is pretty decent unless you want a “high dollar” lifestyle. It’s an hour job to the “big city” with even more opportunities.

You can find houses for a reasonable price in a red state unless you want big city living and 4000 sq ft (on 1/8 ac lot).

If you go to rural Mississippi, you can find homes for 100 to 150 thousand. If you have a WFH job, that would be an ideal place to live.

[Dr. Franklin]

You save on fences.

And if you want a fence, there is no zoning officer to tell you its illegal to have one.

[The Truth Will Make You Free]

I worked in Clarksdale Mississippi a few years back and looked at buying a home there. As you said $100k is possible and $150 can be quite nice.

[rellic]

One thing about house prices you ALL leave out is
nearby jobs that allow you to pay those prices!
No jobs, equals cheaper housing!

[napscoordinator]

Probably many in the sticks of any state.

[21twelve]

I recall a community in Northern Montana where one can buy a home for dirt cheap. $15,000 or so. It is a former military base and far from anything. The only trouble is they have an HOA.

Although I don’t think they would be much of a problem. From the photos it was difficult to tell the difference between the homes being lived in and the 80% that are abandoned and empty.

[napscoordinator]

I live in an HOA. It’s pretty cheap at 135 a month but they are not horrible Karen’s thankfully. I don’t think I could live in a place that I would have to drive an hour to get anywhere. It’s 7 minutes to Publix, 25 minutes to many stores and 40 minutes to Orlando for us.

[minnesota_bound]

California prices.... wow. These are single story on small 1/4 acre land. Crowded with 6ft walls for privacy from neighbors.

Median Price by Month, Latest 13 Months
https://www.laalmanac.com/economy/ec37.php

Former co-worker told me her home value has doubled in price in Ventura. She pays $1,500 a month total with taxes for 900sq/ft. Bought home less then 10 years ago. 1 mile from the beach. Part of a triplex. Rent for a 1 bedroom apt is over $2,200 for 700sq/ft.

Ventura average home price $940,000

[BobL]

“More importantly, which states have the most affordable property tax rates?”

If your house only costs $30k, do you even care what the rates are?

[oldtech]

I’ve seen “affordable” housing come with a lot of unaffordable incomes.

[oldtech]

That all depends on your income. A lot of the “affordable” housing comes with unaffordable property taxes which generally only go in one direction...UP. You buy a house after aprice is set until it’s paid for, but property taxes change constantly whether the ACTUAL property value does or not.

[BobL]

Can be, but the rates have been dropping in Texas, at least, thanks to the state government taking over some of the school funding.

[EQAndyBuzz]

I live in the Grande Dunes area of Myrtle Beach. Currently renting until we can find something. Homes here average around $750k. My wife says no problem, and I’m wandering if we can afford a refrigerator box behind a Luby’s to make our home.

[mewzilla]

Affordability clearly doesn’t include property taxes.

Go figure.