10 States Where You Can Still Buy a $200,000 Home

In a recent video, real estate expert Nicholas Gerli of Reventure Consulting highlights the top 10 states in America where you can still buy a home for around $200,000 or less. Despite the current housing bubble, these states offer affordability and opportunity for both homebuyers and real estate investors.

10.Alabama

According to Gerli, Alabama is an affordable state with a typical home value of $226,000. The monthly mortgage payment is around $1,400, making it an attractive option. Alabama has low property taxes, around $800 per year, and is expected to add 36,000 people by 2023 due to affordability and inbound migration.

9.Arkansas

Arkansas offers a typical mortgage payment of around $1,300 per month. However, Gerli notes that affordability varies across the state. For example, while northwest Arkansas can be more expensive, areas like Little Rock offer more affordable housing options. The state added 22,000 people in 2023, indicating growing interest in the affordable real estate market.

8.Indiana

Indiana is known for its affordable housing, particularly in metros like Indianapolis, where home prices hover around $240,000 in good school districts. The state is set to add more than 20,000 people by 2023, showing a steady influx due to affordability and the economic opportunities it offers.

7.Louisiana

Louisiana is a unique case of falling home prices, particularly in New Orleans. The state lost 20,000 people last year, partly due to hurricanes and outward migration. Despite these challenges, Gerli found that a four-bedroom house in New Orleans could be purchased for $240,000 with a monthly payment of $1,400.

6.Kansas

Kansas offers affordable housing with a median home value of $223,000. The state capital, Topeka, even offers $15,000 cash incentives to movers to attract new residents. This can significantly help with home purchases, making Kansas an attractive option despite its lower inbound migration rates.

5.Oklahoma

Oklahoma stands out with a typical monthly mortgage payment of $1,300. Areas like Edmond, near Oklahoma City, offer affordable homes with good school ratings. Oklahoma gained 32,000 residents due to its affordability and attractive living conditions, making it a popular choice for new residents.

4.Kentucky

Kentucky offers a typical home value of $201,000, with areas like Louisville, Lexington and Bowling Green showing significant affordability. Gerli highlights a three-bedroom home in Bowling Green priced at $200,000 with a monthly payment of less than $1,000, making Kentucky an attractive state for home buyers.

3.Mississippi

Mississippi has some of the lowest home prices in the country, with a median home value of $178,000. Despite being the poorest state in America with a median income of $56,000, it offers significant discounts on homes. The state added 2,000 people in 2023, but generally sees a net loss of residents.

2.Iowa

Iowa has a typical home value of $214,000 with a median income of $74,000, giving it a low home value-to-income ratio of 2.9. Areas like Cedar Rapids offer homes for under $200,000, making it a very affordable state. Iowa’s affordability and growing economy make it a strong contender for home buyers.

1. West Virginia

West Virginia tops the list as the most affordable state, with home prices significantly lower than the national average. Despite its reputation, the state has seen residents increase three years in a row, driven by its affordability. Gerli shows a five-bedroom mansion in Charleston for $687,000, illustrating the state’s incredible value for money.

Affordability and growth potential

These states offer a unique mix of affordability and growth potential, making them attractive to homebuyers and investors. While moving to a new state can be challenging, exploring these options can lead to finding a dream home within your budget.

Economic potential

What do you think? How might the influx of new residents to these affordable states impact their local economies and labor markets? Will the affordability of these states continue to attract new residents in the future, and what might the long-term implications be for housing prices? How are these states managing the increased demand for infrastructure and services that comes with growing populations?
For more information, watch the full video on Reventure Consulting’s YouTube channel here.