(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.
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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.
See the complete study for the full list of states.