Best Property Bargains: Cheap Real Estate Property in US Market

Did you know the median home cost in the United States as of the beginning of 2023 was $467,700? That’s a whopping $250,000 increase over the last 20 years.

It doesn’t help that average wages in the country only increased by $6,005 over that same time. It’s made homeownership inaccessible to many would-be buyers. Because of this, a lot of people are looking to live more frugally and looking to find cheap real estate.

Interested in finding the cheapest home prices in the US? Curious about what’s the cheapest housing market in the US?

If you’re looking for cheap real estate, you’re in the right place.

I’ve compiled data from sources like the U.S. Census Bureau, Zillow Research, The World Population Review, Bankrate, and Homebuyer.com, to find a number of attractive cities and places to live that feature some of the cheapest property in the US.

Cheapest Houses in the US: The Bottom Line

The bottom line: The cheapest houses in the US aren’t in major cities, which have a relatively high cost of living.

The prices in markets in New England, The Pacific Northwest, and The Mountain States and inordinately high as well.

That said, there are numerous opportunities in The Midwest and The Southeast for new buyers and buyers that want to save money. These regions are historically host to some of the cheapest houses in the U.S. and offer a surprising amount of cheap real estate.

Not surprisingly, cheap real estate is more abundant in small towns and rural areas so when researching, consider things like employment opportunities, population, crime rates, and quality of life in those areas.

If real estate isn’t your thing, here are the best cheap stocks to buy now.

What is Cheap Real Estate?

Cheap real estate essentially refers to the average price to buy a home in a certain area compared to the national median U.S. home price of $467,700.

It also refers to homes that may need a little work (fixer-uppers), or homes that can be purchased from auctions, foreclosures, or any other extenuating factor that lowers the price of a home.

That said, these houses may not be in good areas, they may be irreparable or they may have something else wrong with them denoting the bargains, so low prices are not necessarily always a win.

What’s the Cheapest Housing Market in the US in 2023?

Overall, the states with the cheapest home prices in the U.S. are…

• West Virginia
• Mississippi

Both states are home to beautiful sweeping scenery, quiet towns, and strong communities but these states have also been host to poorer schools, less adequate public transportation, and deteriorating public services. As a result, crime has gone up and people and businesses are moving out.

For the sake of this list, we’ll focus on cities with populations of 50,000 or more as they have more to offer in terms of opportunity and quality of life. The U.S. Census Bureau doesn’t consider less populated areas as cities.

1. Youngstown, Ohio

• Average home price: $149,900
• Average household income: $31,020
• Average down payment: $29,980

At the top of the list is Youngstown, Ohio. Halfway between Pittsburgh and Cleveland, it has a history in steel manufacturing but today hosts start-up tech companies, a vibrant art and culture scene, and features museums, state parks, and nature trails.

2. Syracuse, New York

• Average home price: $217,250
• Average household income: $40,076
• Average down payment: $43,450

Syracuse, New York is known for its natural beauty and abundance of wineries. It’s located just south of Lake Ontario and hosts some 20,000 students at Syracuse University. It also features a thriving art scene, museums, and live music festivals.

3. Scranton, Pennsylvania

• Average home price: $225,000
• Average household income: $54,279
• Average down payment: $45,000

Third on the list of cheap real estate and the cheapest property in the U.S. is Scranton, Pennsylvania.

Home of Dunder Mifflin Paper Co. (not really but we wish), Scranton was a coal town in the early 20th century but has seen a resurgence in development, restoration, and population in recent years.

Montage Mountain Ski Resort is also home to winter sports, and year-round concerts and festivals.

4. McAllen, Texas

• Average home price: $270,000
• Average household income: $57,359
• Average down payment: $54,000

McAllen, Texas, the fourth cheapest housing market in the U.S. sits at the southern tip of Texas with a population of over 142,000. Originally agricultural, McAllen has grown significantly in the last few decades into a thriving city and is consistently ranked as one of the safest cities in Texas.

5. Little Rock, Arkansas

• Average home price: $298,873
• Average household income: $53,565
• Average down payment: $59,775

Boyhood home to former president Bill Clinton, Little Rock is Arkansas’ state capital and an economic hub of the South with several large banks headquartered there. It’s also home to a University of Arkansas campus and the Wildwood Park for the Arts.

6. Jackson, Mississippi

• Average home price: $299,000
• Average household income: $35,070
• Average down payment: $59,800

Also a state capital, Jackson is home to HBCU Jackson State University, The Mississippi Civil Rights Museum, and the Mississippi Freedom Trail. It has a rich historical heritage and is an economic center set beside the Pearl River.

7. Indianapolis, Indiana

• Average home price: $300,000
• Average household income: $58,479
• Average down payment: $60,000

Yet another capital city, Indianapolis is home to more than 1 million residents. It is home to several Fortune 500 Companies, multiple universities, and museums.

The Indy 500 and the Colts and the Pacers. It has grown significantly in the last few decades to the third most populated city in the entire Midwest.

8. Wichita, Kansas

• Average home price: $304,475
• Average household income: $56,293
• Average down payment: $60,895

At the convergence of the Arkansas River and the Little Arkansas River, Wichita is Kansas’ largest city. It’s home to many attractions, like The Wichita Art Museum and The Botanica Gardens. It hosts many events in the summer and has a variety of live music venues.

9. Columbia, South Carolina

• Average home price: $308,900
• Average household income: $47,524
• Average down payment: $61,780

Columbia is South Carolina’s Capital and is the second most populated city in the state. It is home to more than 10 universities including The University of South Carolina.

It welcomes more than a million visitors a year, primarily to the famous Riverbanks Zoo & Garden, a landmark on the National Register of Historic Places.

10. Augusta, Georgia

• Average home price: $311,575
• Average household income: $43,009
• Average down payment: $62,315

Augusta hosts The Masters, one of the largest professional golf championships in the world. Sitting on the Savannah River along the South Carolina border it is also home to the Augusta Riverwalk and Phinizy Swamp Nature Park which offer incredible trails for hiking and biking

Cheapest and Most Expensive States to Buy a House

Home prices vary drastically based on location in the U.S. They depend on a multitude of socioeconomic factors, natural scenery, and community infrastructure.

Based on all these factors we’ve included the top 3 cheapest as well as the top 3 most expensive states to buy real estate in the U.S.

Cheapest Housing Markets in the US

• West Virginia
• Mississippi
• Arkansas

Most Expensive Housing Markets in the US

• Hawaii
• California
• Washington

Coastal and mountain states tend to have the highest real estate prices owing perhaps to the desirability of living near natural beauty. On the inverse, States in the Midwest and Southeast tend to have the cheapest housing markets in the U.S.

Why Invest in Cheap Real Estate? Pros and Cons

What are the pros and cons of investing in cheap real estate and the cheapest property in the U.S.?

While pros like wider financing options and less money spent sound attractive it’s important to be cognizant of some of the cons…

Pros	Cons
Finance with low down payments	Lower demand
Easy real estate diversification	Population and economic decline
Avoiding rising interest rates	Low Incomes
Flexible financing alternatives	Poor schools
Less money spent	Community deterioration

Cheap Real Estate Alternatives

Not convinced that investing in cheap real estate is the way to go?

Happily, you have options.

Real estate investment apps offer the opportunity to invest using small minimum investments as opposed to the outsize down payments you’d be paying on actual real estate.

While you may not get to live where you invest, you can still make money in real estate.

These are the best cheap real estate alternatives:

Arrived Homes

• Overall rating: ⭐⭐⭐⭐
• Minimum investment: $100 (10 Shares of $10 each)
• Expected returns: 5.5-15% per year

Arrived Homes is an investment company that allows investors to buy shares of homes they’ve analyzed and as the best upside investment properties in certain areas.

It allows investors to own part of a rental home that pays dividends, creating a nice way to earn passive income.

Fundrise

• Overall rating: ⭐⭐⭐⭐
• Minimum investment: $10
• Expected returns: 5-22% per year

Fundrise is a REIT investing app that allows its investors to purchase shares of a fund that then goes to buy and service a portfolio of industrial and residential real estate.

It’s great for beginning investors because of its low barrier to entry and its impressive number of properties.

Streitwise

• Overall rating: ⭐⭐⭐⭐
• Minimum investment: $4400
• Expected returns: 5-6% per year

Streitwise is another REIT investing app that works like Fundrise but only invests in commercial real estate. It’s a good option for passive income but the barrier to entry is high at $4400 or 500 shares of the fund.

It’s good for seasoned investors who don’t want to put a lot of time or energy into investing in real estate.

Final Word: Cheap Real Estate

If you’re looking for cheap real estate and the cheapest houses in the US, there are a multitude of options … Whether you want to live rurally or in more urban areas, there are markets that can work for any budget.

Of course, if you don’t want to live in these areas, there are always other options — like investing in crowdfunded real estate or building up your savings so you can afford your dream home in a region of your choosing.

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