Map Shows 5 Most and Least Affordable States

The Midwest and South dominate a list put together by real estate website Zoocasa for the most affordable states in the country to live in this year, where residents don't have to break the bank to buy a home.

The list evaluated states based on their average monthly mortgage payment and how much of a median household's monthly income would be required to cover that expense. Zoocasa also considered the house price-to-income ratio in each state, which determines how affordable properties are in each state for local homebuyers.

Why It Matters

With mortgage rates still ticking up and home prices remaining near their pandemic peaks across much of the country, aspiring homebuyers are struggling to get on the property ladder.

Newly sworn-in President Donald Trump has promised to improve affordability in the housing market by increasing inventory and lowering mortgage rates, but experts are still waiting to see what policies he will actually implement in the following months, and what impact they'll have.

Most Affordable States

These are the most affordable states in the entire country, according to Zoocasa, in terms of house price-to-income ratio and the percentage of income needed to pay the average mortgage there.

1. West Virginia:

- House Price-to-Income Ratio: 2.9

- Percentage of Income Required to Cover Avg. Mortgage: 18.7 percent

2. Oklahoma:

- House Price-to-Income Ratio: 3.0

- Percentage of Income Required to Cover Avg. Mortgage: 19.5 percent

3. Mississippi:

- House Price-to-Income Ratio: 3.1

- Percentage of Income Required to Cover Avg. Mortgage: 20.1 percent

4. Iowa:

- House Price-to-Income Ratio: 3.2

- Percentage of Income Required to Cover Avg. Mortgage: 20.6 percent

5. North Dakota:

- House Price-to-Income Ratio: 3.2

- Percentage of Income Required to Cover Avg. Mortgage: 20.7 percent

According to Zoocasa, West Virginia boasts the lowest median home price in the nation at $163,700, "a major draw to settling" in the state. This massively helps affordability in the state, where the median household income is also quite low at $55,948.

"Housing affordability depends on balancing sufficient income growth and accessible home prices," Zoocasa wrote. "However, the five states with the lowest house price-to-income ratios have relatively low median household incomes, illustrating the role of home prices in determining affordability."

States with much higher median household incomes than the one listed above don't necessarily have more housing accessibility—in fact, housing costs might eat away at much of those wages.

Least Affordable States

Zoocasa's list of the least affordable states in the country would hardly surprise anyone keeping an eye on the U.S. market, as it features some of the most expensive housing markets in the country.

1. Hawaii:

- House Price-to-Income Ratio: 10.6

- Percentage of Income Required to Cover Avg. Mortgage: 67.9 percent

2. California:

- House Price-to-Income Ratio: 8.9

- Percentage of Income Required to Cover Avg. Mortgage: 57.2 percent

3. Montana:

- House Price-to-Income Ratio: 7.7

- Percentage of Income Required to Cover Avg. Mortgage: 49.3 percent

4. Washington:

- House Price-to-Income Ratio: 6.5

- Percentage of Income Required to Cover Avg. Mortgage: 41.5 percent

5. Massachusetts

- House Price-to-Income Ratio: 6.4

- Percentage of Income Required to Cover Avg. Mortgage: 40.8 percent

Hawaii is at the top of the list due to "a combination of limited land, home building regulations, international and out-of-state demand, and its remote location," Zoocasa wrote. It's the only state with a house price-to-income ratio of above 10.

The median home price of a home in Hawaii, at $1,009,810, it's even higher than in California, at $852,880. The two states have the highest home prices in the country, which chip away at their relatively high median household incomes.

What People Are Saying

Moody's Analytics economist Matthew Walsh previously told Newsweek: "Places like Arizona, Idaho, and some markets in Texas, where there was a lot of building and there was a very quick home price appreciation after the pandemic which led to this overvaluation. We would expect to see some greater slowing there or home price declines, depending on the market."

Danielle Hale, chief economist at Realtor.com, said in a recent report talking about the most affordable markets in the U.S. this year: "While home prices remain high and mortgage rates are forecasted to stay above 6 percent throughout 2025, the year is expected to see more inventory hit the market—a silver lining for shoppers who will see more or less choice depending on where they are."

What Happens Next

Most housing experts believe that home prices will continue creeping up this year, though at a slower pace than previously recorded due to dwindling demand. In states like Florida and Texas, which have build more new housing than any other in the past few years, a flood of inventory is expected to give homebuyers an advantage.