Owning a home is as American as apple pie. Although purchasing a house is a major component of the American Dream, it’s becoming increasingly difficult. The current state of the economy presents significant problems for Americans wanting to buy a home or upgrade.
Unfortunately, economic issues are multilayered, so interested parties must juggle multiple challenges. For example, interest rates remain stubbornly high. Rates for a 30-year fixed-rate mortgage are roughly 4% higher than they were in 2020, according to the Federal Reserve Bank of St. Louis. Higher rates can easily add hundreds of dollars to a monthly mortgage payment.
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Additionally, housing inventory remains low. Although improving, inventory is still 20% lower than pre-pandemic levels, according to Zillow. This leaves fewer homes for interested parties to consider when looking to buy.
Worse yet, property taxes are a problem for many Americans. Such taxes have increased in nearly all of the 50 most populous metro areas in the United States over the past five years, according to Redfin. It is possible to file an appeal, but there’s no guarantee you’ll successfully receive a lower rate.
Despite the current struggles many Americans face in buying a home, hope is not lost. Where you purchase a house can play a significant role in housing affordability. Some states are better than others, thanks to a combination of median incomes and affordable housing. In a recent study, Roofing Craftsmen highlighted the top 10 cheapest states to buy and own a home using those two variables.
For Americans facing difficulties purchasing a home, they may want to consider one of the following states, which offer more opportunity.
Utah
- Median household income: $79,449
- Average annual homeowner cost: $16,406
- Average homeowner cost as % of median income: 20.65%
Maryland
- Median household income: $90,203
- Average annual homeowner cost: $20,052
- Average homeowner cost as % of median income: 22.23%
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Minnesota
- Median household income: $77,720
- Average annual homeowner cost: $17,506
- Average homeowner cost as % of median income: 22.52%
Wisconsin
- Median household income: $67,125
- Average annual homeowner cost: $15,350
- Average homeowner cost as % of median income: 22.87%
Delaware
- Median household income: $71,091
- Average annual homeowner cost: $16,624
- Average homeowner cost as % of median income: 23.38%
Wyoming
- Median household income: $65,204
- Average annual homeowner cost: $15,488
- Average homeowner cost as % of median income: 23.75%
Nevada
- Median household income: $66,274
- Average annual homeowner cost: $15,931
- Average homeowner cost as % of median income: 24.04%
Virginia
- Median household income: $80,963
- Average annual homeowner cost: $19,723
- Average homeowner cost as % of median income: 24.36%
Oregon
- Median household income: $71,562
- Average annual homeowner cost: $17,545
- Average homeowner cost as % of median income: 24.5%
Washington
- Median household income: $84,247
- Average annual homeowner cost: $20,848
- Average homeowner cost as % of median income: 24.75%
Buying a home in the current economic landscape is challenging, but not impossible. Identifying the right place to buy can turn the problem on its head and help achieve a lifelong goal.
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This article originally appeared on GOBankingRates.com: 10 Cheapest States To Buy and Own a Home (Even in This Economy)
