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.

couple after buying new house
Updated Sept. 24, 2024
Fact checked

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

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.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

How to become a member today:

  • Go here, select your free gift, and click “Join Today”
  • Create your account (important!) by answering a few simple questions
  • Start enjoying your discounts and perks!

Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.

Become an AARP member now

Georgia

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.

Michigan

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.

Resolve $10,000 or more of your debt

Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.

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.1

How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.

Try it

Tennessee

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.

Virginia

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.

Indiana

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.

Pennsylvania

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.

Ohio

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.

Minnesota

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.

Earn cash back on everyday purchases with this rare account

Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2

With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!

This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.

Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.

Apply for a Discover Cashback Checking account today

Texas

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.

Lucrative, Flat-Rate Cash Rewards

5.0
info

Wells Fargo Active Cash® Card

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn unlimited 2% cash rewards on purchases

Benefits and Drawbacks
Card Details


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 FoxSports.com.