Study: 10 cheapest states to buy a home in 2022

(NEXSTAR) – The pandemic hasn’t been kind to potential home buyers – skyrocketing prices and a lack of inventory have made buying a house impossible for some – but for those willing to move, a new study ranking the cheapest states to buy a home may offer some hope.

Experts don’t expect the eye-popping prices for homes in cities across the nation to go down any time soon, so it may be worth considering a move that would provide more house for one’s hard-earned cash. A new study from Rocket Mortgage projects the 10 cheapest states to buy a house in 2022.

The study’s authors analyzed data measuring the 2021 movement of single-family house prices, the cost of living index, the house price index per state, and the median household income in all 50 states.

The study projects Tennessee to be the cheapest state to buy a home in this year, citing a low cost of living, lack of income tax and low property taxes.

Rank	State	Q4 2021 Measure Of Movement Of Single-Family House Prices	Q4 2021 All-Transactions House Price Index	Median Household Income
1	Tennessee	297.21	310.42	$68,600
2	Illinois	305.98	280.26	$85,000
3	Oklahoma	305.55	407.56	$67,000
4	Ohio	227.64	543.83	$75,300
5	Texas	273.25	519.47	$75,100
6	Virginia	271.16	451.12	$93,000
7	Indiana	250.48	630.57	$73,300
8	Delaware	272.6	409.83	$83,000
9	Iowa	390.94	363.17	$79,500
10	Mississippi	318.87	582.98	$60,000

(Rocket Mortgage)

The most expensive state was Oregon, followed by New Mexico, Alaska, Utah and Hawaii.

When it comes to buying in this red-hot market, the mortgage company suggests favoring a better neighborhood over the house itself wherever possible – the property will hold more value when things slow down.

A smaller house in a choice neighborhood may mean long term savings because it will come with less taxes, utility costs and upkeep.

Lastly, consider buying a cheaper home that you can improve over time, raising the value of the home.

See the complete study for the full list of states.