The Cheapest States to Build a Homestead In

Here are the cheapest states to build a homestead, according to home research done by Agent Advice. Is your state in the top ten?

We’ve shown you how much a homestead can cost, but if you are looking for a deal, real estate experts Agent Advice, analyzed the typical price of homes throughout the country from March 2021 to March 2023 and found where the least expensive homes were. This can give you a great idea of the cheapest states to build a homestead in.

West is Best

Ranking at the top of the list, the research found that West Virginia was the least expensive state to own a home. Typical house prices were $146,578 as of March 2023. That’s 57% less than the national average ($338,649), according to the analysis. 

A Homestead in Mississippi is Affordable

Mississippi is the second cheapest state to own a home. As of March 2023, in the Magnolia State, the average house price stood at $162,292, which is 52% below the national average. Over the period between March 2021 and March 2023, the state saw a modest 12% increase in house prices, amounting to $17,966. However, there was a slight depreciation of 2% and $2,523 in typical house prices from March 2022 to March 2023, indicating a minor decrease in the past two years.

Arkansas is the Third Cheapest

Arkansas holds the third position among the states. In this state, as of March 2023, the average house price was $178,744, which is 47% below the national average. Over the period from March 2021 to March 2023, the typical cost increased by 11%, amounting to $18,000, making it the fourth lowest monetary increase among states. Interestingly, from March 2022 to March 2023, there was a decrease of 4% in typical prices, resulting in an additional savings of $6,646 for house hunters.

More Cheap States for Homesteading

Louisiana is the fourth most affordable state to own a home in the whole of America. As of March 2023, the typical house prices there are just $182,959, which is a whopping 46% less than the national average. 

Here’s something even more interesting – while most places in America saw increases in house prices, Louisiana went against the trend and experienced a reduction. Between March 2021 and March 2023, house prices fell by 2%, which translates to a savings of $3,363. And get this – from March 2022 to 2023, there was an 8% decrease, which means homebuyers saved a massive $15,648! 

Coming in at fifth place, we have Oklahoma. As of March 2023, typical home prices there were $188,453, which is a fantastic 44% below the national average. It’s worth noting that this represents a 21% increase compared to March 2021, with a rise of 5% or $8,428 in the last two years.

Next up, we have Kentucky in sixth place. In March 2023, typical house prices were benchmarked at $190,037, which is 44% below the national average. Over the years, property values increased by 3%, adding $5,413 from March 2022, and a total of 15% or $24,627 from March 2021. Quite an impressive feat, ranking it as the seventh-lowest monetary rise in the country.

Iowa follows closely as the seventh most affordable state to own a home. As of March 2023, typical house prices were reported at $200,038, a whopping 41% below the national average. Over the span of March 2021 to March 2023, property values witnessed a significant 17% increase, amounting to $29,356, and a 5% rise of $10,005 from March 2022 to March 2023.

Ohio takes the eighth spot with a typical home value of $205,800 as of March 2023, making it the eighth cheapest state to own a home. Alabama grabs the ninth position with a typical price of $206,044, while Kansas rounds out the top ten at $210,742.

Chris Heller, Co-founder of Agent Advice, has commented on the findings: “The U.S. housing market is estimated to be worth $43.4 trillion in 2023. To take advantage of this, consumers and agents alike must understand the ever-changing nature of the real estate market.”  

The Top Ten Cheapest States to Own a Home in America 

Use this information gathered by Agent Advice to find the best place to buy a homestead: