(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|
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.