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

Unlock the door to homeownership in these surprisingly affordable states.

couple after buying new house
Updated July 18, 2024
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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.

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Smole/Adobe couple standing outside their new house

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.


hedgehog94/Adobe couple talking with real estate agent

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

bernardbodo/Adobe couple moving in

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.

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Jacob Lund/Adobe couple renting a new house

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.


LIGHTFIELD STUDIOS/Adobe happy family outside new house

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.


Dragana Gordic/Adobe couple getting keys from their realtor

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.


Aldeca Productions/Adobe keys with house door background

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.


simona/Adobe beautiful woman wearing sun hat showing keys of new apartment

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.


alfa27/Adobe couple looking at new countryhouse

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.

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Rido/Adobe woman hugging man while holding keys with moving boxes in background

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

Andy Dean/Adobe hispanic family in front of their home

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.

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Author Details

Jenny Cohen

Jenny Cohen is a freelance writer who has covered a bit of everything, from finance to sports to her favorite TV shows. Her work has been featured in The Wall Street Journal, USA Today, and