Saving & Spending Home & Auto

The 10 States Where You Can Still Afford To Buy a New Home

Unlock the door to homeownership in these surprisingly affordable states.

By Jenny Cohen , Edited by Ellen Cannon

Updated Sept. 1, 2026

Add Us On Google

Dream of owning a low-maintenance newer home? While affordability can vary by location, several states offer a sweet spot: a chance to find a recently built house without breaking the bank.

This guide explores states where you might find your perfect blend of affordability and new construction. Owning a home can be a great path to building wealth, so let's explore your options.

Set up direct deposit - pocket $400

Set up an eligible direct deposit with SoFi Checking and Savings and you could pocket a bonus of up to $400. Make the switch, set up direct deposit, earn the bonus. It basically takes no extra work at all other than following these steps.

Why people are switching: This account earns up to an insane 4.00% APY¹ Earn up to 4.00% Annual Percentage Yield (APY) on one SoFi Savings account with a 0.90% APY Boost (added to the 3.10% APY as of 5/28/26) for up to 6 months. Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/26. Rates are variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#4">sofi.com/banking#4</a>. SoFi Bank, N.A. Member FDIC. on savings for up to six months (3.10% APY standard + 0.90% APY boost) on top of that $50 or $400 bonus.² New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/26. See full bonus and annual percentage yield (APY) terms at <a href="https://www.sofi.com/banking/checking-offer/">sofi.com/banking/checking-offer/</a> That's way better than the measly 0.38% APY (as of 06/15/26)³ Based on <a href="https://www.fdic.gov/national-rates-and-rate-caps">this</a> FDIC data, as of 6/15/26. national average savings accounts offer.

No monthly fees and no surprises. Open your account and earn up to a $400 bonus

Georgia

Georgia's population has grown in recent years, notably around Atlanta.

According to the real estate website Redfin, the average home value in Georgia is $360,200. That compares favorably with the average home value in the United States of $411,887.

Shopping for cheaper auto insurance? Enter your zip code here to get started.

Michigan

The Mitten State may be a good option if you're looking for new construction and affordable housing.

Home prices in the state are also more affordable compared to other states, which could make it easier for you to find an affordable home that's also new. The state's average home value is $236,100, around $175,787 less than the national average.

North Carolina

Florida's population is growing, but its housing costs have also increased with the average home price higher than the national average.

So, if you're considering moving south or retiring early, you may want to consider North Carolina instead.

But those new and existing homes cost less than either Florida or California. The average home value in North Carolina is $360,100, which is lower than the national average and much lower than California's average home value of $785,500.

Resolve $10,000 or more of your debt

National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.⁴ Please note that all calls with the company may be recorded or monitored for quality assurance and training purposes. Clients who are able to stay with the program and get all their debt settled realize approximate savings of 45% before fees, or 20% including our fees, over 24 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating. "Debt-Free" applies only to enrolled credit cards, personal loans, and medical bills. Not mortgages, car loans, or other debts. Results vary.

Tennessee

Tennessee saw an 8.6% decline in new home permits in 2022 compared to a year earlier, but the actual number of permits still puts the state among the top 10 in the U.S.

The average home value in Tennessee sits at $368,00, which is over $40,000 less than the national average.

Virginia

One area spurring growth in Virginia is the northern Virginia region near Washington, D.C. For example, the area of Arlington and Alexandria saw an 18.2% increase in new home permits in 2022 compared to a year earlier.

The state has an average home value of $419,500, which is only around $7,613 higher than the national average.

Indiana

The average home value in Indiana is $241,600, more than $150,00 below the national average of $411,887. However, the Indiana home value increased 4.0% compared to a year earlier.

Now may be a good time to buy a home if you plan to stay in it and see your investment increase.

Make Money: 8 things to do if you're barely scraping by financially

Pennsylvania

The Keystone State may be an inviting option for buyers who want to get a new or newer home at an affordable price.

The state ranked 12th in new home permits issued and made it into the top 20 states with new permits in 2022. Cities like Pittsburgh helped boost permits, with an 8.5% rise in 2022 compared to a year earlier.

The average value of a home in Pennsylvania is $262,700, a 7.8% increase from a year earlier.

Ohio

Cities in northeast Ohio helped boost new housing permits, with Cleveland seeing an 11.8% increase in 2022 and nearby Akron seeing a whopping 150.8% jump that year.

Homes in Ohio are affordable for potential buyers, with the average home value at $227,600, well below the national average.

Minnesota

Minnesota may be a great option if you're looking for an affordable new home and don't mind the cold too much.

The average home value for a place in Minnesota is $330,200, less than the national average. The state was among the top 20 states based on new home permits issued in 2022.

Earn $100 cash rewards bonus with this incredible card

The Wells Fargo Active Cash^® Card (Rates and fees) has no annual fee and you can earn a $100 cash rewards bonus after spending $500 in purchases in the first 3 months.

Cardholders can also earn unlimited 2% cash rewards on purchases.

The best part? There's no annual fee.

Click here to apply now.

Texas

The Lone Star State may not be so lonely if you decide to join the throngs moving there. And they need new homes.

The state topped the list of new home permits in 2022, with more than 260,000 permits issued for new home builds. Cities Houston and San Antonio each saw a 9.3% increase in permits.

According to Redfin, Texas also has plenty of affordable housing, with the average home value at $340,500.

Bottom line

Owning a home is a significant financial commitment, and budgeting for the long term is key. Factor in property taxes, insurance, maintenance, and potential future upgrades alongside your mortgage payment.

While a high-yield savings account can help grow your down payment, consider if this will be your forever home or a stepping stone. Either way, smart saving habits will ensure you're prepared for ongoing expenses and future improvements.

More from FinanceBuzz:

Intro APR on purchases and balance transfers
$0 annual fee
Apply Now

Get a 0% intro APR for 15 months on purchases and balance transfers; balance transfer fee applies. Then 17.49% to 26.49% Standard Variable Purchase APR applies, based on credit worthiness
INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300
Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases
Redeem cash back for any amount. No annual fee
Terms and conditions apply

4.7

Apply Now

on Issuer's secure website

Read Card Review

Intro Offer

INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300

Annual Fee

Why we like it