It's no secret that the housing market varies widely depending on where you are in the U.S. For the price of a one-bedroom condo in Manhattan, you could buy a beachfront four-bedroom home in much of the Southeastern U.S.
There are good reasons for these differences, and you'll pay more for proximity to city centers, good schools, beaches, or whatever the case may be. As real estate professionals like to say, "location, location, location."
A recent GOBankingRates study evaluated home affordability in all 50 U.S. states and the District of Columbia. Specifically, the study analyzed how much house, in square footage, you can buy with a maximum budget of $300,000. Obviously, this has its shortcomings, as home prices can vary dramatically depending on your location within a certain state. Clearly the price per square foot you'll pay in Manhattan is higher than you'd pay in rural areas of upstate New York.
Having said that, here are the seven states where a $300,000 budget will buy the most house, listed in ascending order. If you're in a high-cost area, you might be surprised at how far your money could go in one of these states.
In Oklahoma, $300,000 will buy you a 3,175-square foot home, on average. However, be aware that Oklahoma has an average sales tax rate of 8.82% -- one of the highest in the U.S. -- and it can be up to 11%, depending where you are in the state.
6. Alabama
Alabama's median home price of $92 per square foot translates into a 3,256-square-foot home for $300,000.
In addition to cheap real estate, Alabama has the second-lowest property tax rate in the U.S., at just 0.43% of the home's value, on average -- about a third of the national average. Furthermore, homeowners aged 65 and older don't pay any property taxes at all (but may pay at the city and county level).
5. West Virginia
With West Virginia's $89 median price per square foot, your $300,000 budget could buy a 3,360-square-foot home.
West Virginia also has one of the lowest property tax rates in the U.S., with the average bill amounting to just 0.59% of a home's value. However, the state's top income tax rate of 6.5%, average sales tax rate of 6.2%, and income-dependent Social Security taxes may offset the savings.
4. Ohio
Ohio's housing market as a whole is just slightly cheaper than West Virginia's, as a $300,000 budget could buy a 3,366-square-foot home. However, while Ohio's top income tax rate of 4.997% doesn't sound terribly high, it's worth noting that Ohio residents also pay income tax to municipalities as well, with rates as high as 3.38%.
3. Arkansas
In Arkansas, $300,000 can buy a 3,390-square-foot home, and the state's 0.62% average property tax rate is among the lowest in the nation. Arkansas has some of the lowest property taxes in the U.S., with the average homeowner paying just $716 per year, but the average combined (state and local) sales tax rate of 9.3% may offset this somewhat.
2. Mississippi
Mississippi is the second-cheapest state to buy a home. A $300,000 budget could buy a 3,402 square-foot home for you to spread out in. Mississippi is also a good place to be a business owner, as the state ranks in the top quartile for corporate tax-friendliness. Mississippi is also one of the most tax-friendly states for retirees, with no tax on Social Security benefits or any qualified retirement income.
1. Indiana
With a median price of $86 per square foot, Indiana is the most affordable state to buy a home. A $300,000 budget could purchase 3,478 square feet of living space. The state is also ranked as one of the 10 most tax-friendly states by The Tax Foundation due to its low individual income tax rate (a flat rate of 3.3%) and low average property tax.
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1. Indiana. With a median price of $86 per square foot, Indiana is the most affordable state to buy a home. A $300,000 budget could purchase 3,478 square feet of living space.
The majority of states in the Midwest and South offer a lower cost of living than states in the Northeast and West. The 'biggest bang for your buck' comes in Mississippi where, compared to the national average, you can actually purchase $115.74 worth of goods for $100.
Tax benefits. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, and some of the costs involved in buying a home.
Appreciation. Historically, real estate has had a long-term, stable growth in value. ...
The state with the highest property tax rate is New Jersey. Homeowners in New Jersey may pay more than $8,000 per year in property taxes, depending on the value of their home.
All of the data below comes from the Census Bureau's 2021 1-year American Community Survey (ACS) Estimates. Hawaii has the lowest property tax rate in the U.S. at 0.27%. The Aloha state has a home median value of $722,500.
Mississippi is the state with the lowest cost of living in the US, with a cost of living index of 85. This means that the cost of living in Mississippi is 15% lower than the national average. The state has a low cost of housing, groceries, and utilities.
The three cheapest states to move to in terms of housing costs are: West Virginia, with an average price of $123,000; Mississippi, with an average price of $125,000; and Arkansas, with an average house price of 133,600. You can view the 10 cheapest states to move to below.
A person who makes $50,000 a year might be able to afford a house worth anywhere from $180,000 to nearly $300,000. That's because annual salary isn't the only variable that determines your home buying budget. You also have to consider your credit score, current debts, mortgage rates, and many other factors.
Billionaire mogul Byron Allen, CEO of Entertainment Studios and perhaps best known for buying The Weather Channel, purchased a Malibu mansion for $100 million, reports the Wall Street Journal.
Removing clutter from the home's exterior, touching up paint, adding plants, and improving the landscape should be a priority. These are all significant improvements to increase a home's value. You want the exterior to look great. Remember that you don't need to go overboard with the landscaping.
Age and condition. Typically, homes that are newer appraise at a higher value. The fact that critical parts of the house, like plumbing, electrical, the roof, and appliances are newer and therefore less likely to break down, can generate savings for a buyer.
They evaluate credit and payment history, income and assets available for a down payment and categorize their findings as the Three C's: Capacity, Credit and Collateral.
“Property taxes in Texas are so high because that's the price we pay for not having a personal income tax in this state,” Craymer said. State tax systems are usually looked at as a three-legged stool — one leg is property tax, the second leg is sales tax, and the third leg is the personal income tax.
Kansas, Florida, Iowa, and Texas provide an unlimited dollar value homestead exemption. Florida and Texas, in fact, are well known as debtor-friendly states because of their homestead exemptions.
How Florida Has No Income Tax. In 1968, the Florida Constitution was ratified to prevent the state from collecting an income tax. And the state constitution protects taxpayers from having the state impose new taxes or raise them.
The most common destinations for California migrants were Texas, Arizona, and Nevada. Texas had the most California transplants from 2020 to 2021: 105,000. Arizona (with 63,000 California transplants) and Nevada (55,000) were next highest.
The bottom line is Florida is a far less expensive state to live in than California because it has less expensive homes, lower sales tax on things you buy, and lower income taxes on money you earn.
Washington state has the highest quality of life in all 50 states. The state has no income tax, a thriving job market, and great international business opportunities.
Hawaii. Hawaii is truly a paradise, but it is also the most expensive state in America to live in. The cost of living in Hawaii overall is 86% higher than the national average, and the cost of housing in Hawaii is a jaw-dropping 207% above the national average.
According to several studies on cost of living, Hawaii is the most expensive U.S. state to live in. Prices are typically double in Hawaii compared to those on the mainland, and the continued rise in inflation is making costs ranging from housing to health care much more expensive.
The ten most expensive states to live in are Hawaii, Massachusetts, California, New York, Alaska, Maryland, Oregon, Connecticut, New Hampshire, and Vermont. Hawaii is the most expensive state to live in, with a cost of living index of 184.
Regarding affordability, the report indicates that Connecticut, Massachusetts, and New Jersey are the most affordable states with Arizona, Nevada, and Florida being the least affordable.
In its report, Niche also ranked the cheapest places to live in the U.S. At the top of the list this year is Brownsville, Texas. Brownsville has been steadily rising in Niche's Lowest Cost of Living ranking over the past few years, placing number six in 2021, number three in 2022 and finally, number one in 2023.
Is it expensive to live in Florida? Though the state has long had a reputation for being an inexpensive place to live, housing costs are high. Rents and sale prices are both well above national averages. However, the overall cost of living in the state is about on par with the national average.
Assuming a 30-year fixed conventional mortgage and a 20 percent down payment of $80,000, with a high 6.88 percent interest rate, borrowers must earn a minimum of $105,864 each year to afford a home priced at $400,000.
What income is required for a 200k mortgage? To be approved for a $200,000 mortgage with a minimum down payment of 3.5 percent, you will need an approximate income of $62,000 annually.
On a $70,000 income, you'll likely be able to afford a home that costs $280,000–380,000. The exact amount will depend on how much debt you have and where you live — as well as the type of home loan you get.
The seven-bedroom, 10-bathroom, prime-Beverly Hills-location home is the brainchild of developer Adnan Sen, who has also become a reality presence in his own right. The house, which is still available and listed on The Oppenheim Group website, has become an internet sensation.
If you sell your home for $1, the sale is perceived as a gift. This means that the house has not been resold, only gifted. For tax purposes, that means the tax basis stays the same. A house you bought for $100,000 may now be worth $400,000 at fair market value.
Here's why rich people don't buy properties free and clear
The simple reason why most rich people do not pay cash for properties is that they can make a better investment with their money elsewhere rather than putting a large sum down on a home. * Points are equal to 1% of the loan amount and lower the interest rate.
If you haven't renovated your home in the past 30 years or so, it won't show well when you put it on the market. In other words, it won't get the same price as a similar home that's been maintained and updated.
They say the three most important things to think about when buying a home are location, location, location. You can change almost everything else, but you can't change your home's location.
However, there are three important numbers you should know before you buy a home, as they provide a snapshot of your financial profile and your ability to carry the debt associated with a new home. These numbers include your credit score, debt-to-income ratio, and loan-to-value ratio.
California leads the nation for fastest home sales, with the average property snapped up in just 52 days. Compare that to Vermont, the slowest of all 50 states, where it takes nearly half a year — 161 days on average — just to lock down a buyer.
Mississippi, “The Magnolia State,” is the birthplace of Elvis Presley and the delta blues. It's also the cheapest state to buy a house in 2023. As of 2020, the total state population was 2,961,279, making it the 32nd most populated state. The most populated city is Jackson, with 153,701 residents.
There are plenty of building supplies available for new homes. The cost of living is affordable, the state has low tax rates, and it has a strong economy. These reasons and more make Texas a cheap state and a great place to live. What is this?
If you look in the long-term, it's always a good investment to buy in Los Angeles. It is said that you will always get your money back or you would make a profit, as Los Angeles has a track record of being a great long-term investment.
The hottest housing markets include those markets in North Carolina, Colorado and Texas that were also popular during the pandemic, including Raleigh and Durham, Denver and Austin. Markets to watch that improved the most between November and December 2022 include Portland, Oregon, Richmond, Virginia, and St.
Sellers can net thousands of dollars more if they sell during the peak months of May, June and July versus the two slowest months of the year, October and December, according to a 2022 report by ATTOM Data Solutions.
A few states across the country have relaxed building codes, and Texas is one of them. Endless permits and red tape do not hold up developers and construction crews. Consequently, homes are built faster, increasing the supply and keeping overall home prices more affordable.
Cost of Living in California vs. Texas. In Texas, you can get a lot more bang for your buck. A MyMove study evaluating the cost of living in the United States in 2022 shows that California has a cost index of 151.7, while Texas has a cost index of only 91.5.
As NerdWallet's mortgage expert Tim Manni explains: “If you plan to stay in your home for a longer time period, buying usually becomes more fiscally attractive. Your home has more time to appreciate in value, and you have a longer time to spread out all the costs you incur when buying and selling a home.”
According to the study, a Los Angeles resident without children would need to make $76,710 after taxes to live comfortably. The study is based on the MIT Living Wage Calculator, which uses the cost of housing, food, transportation, medical care and more.
The data used in the study analyzed the cost of living in each city as of 2022. For California cities like Los Angeles, Berkeley and San Diego, a single person must make more than $76,000 to “live comfortably,” the data shows.
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