The three-bedroom house is something of a standard for many American families. They're a great fit for a family of four, but those bedrooms can just as easily become home offices, gyms, art studios or whatever else you can imagine should you live alone or be an empty nester. If you want enough space for your family but don't want to buy too much house, three bedrooms can be that simple compromise that splits the difference.
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But a three-bedroom home is not the same everywhere you go. Depending on the state you call home, the typical three-bedroom house can list at anywhere from about $125,000 to more than $740,000. That's why GOBankingRates compiled a study to track the affordability of the three-bedroom house across America.
The states are ranked based on the average monthly mortgage payment for three-bedroom homes — from least to most expensive. For additional context, GOBankingRates included a variety of other important factors that affect overall affordability, like the average size of a 20% down payment and the average effective property tax rate.
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The end result is a clearer picture of which states offer a friendly market for those shopping for a modest family home and which will price most people out of the market before they start looking.
Last updated: July 13, 2021
West Virginia
Average 3-bedroom home value: $125,540
20% down payment: $25,108
Average effective state property tax: 0.55%
Monthly mortgage payment: $479
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Mississippi
Average 3-bedroom home value: $146,746
20% down payment: $29,349
Average effective state property tax: 0.65%
Monthly mortgage payment: $572
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Oklahoma
Average 3-bedroom home value: $148,873
20% down payment: $29,775
Average effective state property tax: 0.88%
Monthly mortgage payment: $609
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Alabama
Average 3-bedroom home value: $166,814
20% down payment: $33,363
Average effective state property tax: 0.40%
Monthly mortgage payment: $615
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Arkansas
Average 3-bedroom home value: $169,551
20% down payment: $33,910
Average effective state property tax: 0.64%
Monthly mortgage payment: $659
Louisiana
Average 3-bedroom home value: $175,923
20% down payment: $35,185
Average effective state property tax: 0.52%
Monthly mortgage payment: $667
Kentucky
Average 3-bedroom home value: $165,738
20% down payment: $33,148
Average effective state property tax: 0.82%
Monthly mortgage payment: $669
Indiana
Average 3-bedroom home value: $177,884
20% down payment: $35,577
Average effective state property tax: 0.87%
Monthly mortgage payment: $726
Kansas
Average 3-bedroom home value: $169,190
20% down payment: $33,838
Average effective state property tax: 1.33%
Monthly mortgage payment: $755
Iowa
Average 3-bedroom home value: $168,625
20% down payment: $33,725
Average effective state property tax: 1.50%
Monthly mortgage payment: $777
Ohio
Average 3-bedroom home value: $168,937
20% down payment: $33,787
Average effective state property tax: 1.62%
Monthly mortgage payment: $795
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South Carolina
Average 3-bedroom home value: $208,374
20% down payment: $41,675
Average effective state property tax: 0.56%
Monthly mortgage payment: $796
Missouri
Average 3-bedroom home value: $191,056
20% down payment: $38,211
Average effective state property tax: 1.01%
Monthly mortgage payment: $802
Georgia
Average 3-bedroom home value: $209,899
20% down payment: $41,980
Average effective state property tax: 0.92%
Monthly mortgage payment: $865
Tennessee
Average 3-bedroom home value: $221,364
20% down payment: $44,273
Average effective state property tax: 0.73%
Monthly mortgage payment: $877
Michigan
Average 3-bedroom home value: $199,226
20% down payment: $39,845
Average effective state property tax: 1.44%
Monthly mortgage payment: $908
North Carolina
Average 3-bedroom home value: $223,591
20% down payment: $44,718
Average effective state property tax: 0.85%
Monthly mortgage payment: $909
North Dakota
Average 3-bedroom home value: $220,227
20% down payment: $44,045
Average effective state property tax: 0.95%
Monthly mortgage payment: $913
New Mexico
Average 3-bedroom home value: $240,283
20% down payment: $48,057
Average effective state property tax: 0.68%
Monthly mortgage payment: $942
Pennsylvania
Average 3-bedroom home value: $212,270
20% down payment: $42,454
Average effective state property tax: 1.51%
Monthly mortgage payment: $979
South Dakota
Average 3-bedroom home value: $225,041
20% down payment: $45,008
Average effective state property tax: 1.22%
Monthly mortgage payment: $984
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Nebraska
Average 3-bedroom home value: $209,383
20% down payment: $41,877
Average effective state property tax: 1.65%
Monthly mortgage payment: $991
Wyoming
Average 3-bedroom home value: $262,113
20% down payment: $52,423
Average effective state property tax: 0.55%
Monthly mortgage payment: $1,000
New York
Average 3-bedroom home value: $226,773
20% down payment: $45,355
Average effective state property tax: 1.40%
Monthly mortgage payment: $1,026
Delaware
Average 3-bedroom home value: $267,790
20% down payment: $53,558
Average effective state property tax: 0.58%
Monthly mortgage payment: $1,028
Texas
Average 3-bedroom home value: $220,161
20% down payment: $44,032
Average effective state property tax: 1.69%
Monthly mortgage payment: $1,049
Wisconsin
Average 3-bedroom home value: $224,048
20% down payment: $44,810
Average effective state property tax: 1.73%
Monthly mortgage payment: $1,075
Virginia
Average 3-bedroom home value: $268,612
20% down payment: $53,722
Average effective state property tax: 0.86%
Monthly mortgage payment: $1,094
Illinois
Average 3-bedroom home value: $219,271
20% down payment: $43,854
Average effective state property tax: 2.05%
Monthly mortgage payment: $1,110
Florida
Average 3-bedroom home value: $282,779
20% down payment: $56,556
Average effective state property tax: 0.94%
Monthly mortgage payment: $1,170
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Minnesota
Average 3-bedroom home value: $287,545
20% down payment: $57,509
Average effective state property tax: 1.11%
Monthly mortgage payment: $1,231
Arizona
Average 3-bedroom home value: $317,917
20% down payment: $63,583
Average effective state property tax: 0.67%
Monthly mortgage payment: $1,244
Nevada
Average 3-bedroom home value: $334,516
20% down payment: $66,903
Average effective state property tax: 0.66%
Monthly mortgage payment: $1,306
Alaska
Average 3-bedroom home value: $315,024
20% down payment: $63,005
Average effective state property tax: 1.02%
Monthly mortgage payment: $1,325
Maryland
Average 3-bedroom home value: $314,616
20% down payment: $62,923
Average effective state property tax: 1.04%
Monthly mortgage payment: $1,328
Maine
Average 3-bedroom home value: $300,866
20% down payment: $60,173
Average effective state property tax: 1.27%
Monthly mortgage payment: $1,328
Montana
Average 3-bedroom home value: $352,539
20% down payment: $70,508
Average effective state property tax: 0.76%
Monthly mortgage payment: $1,406
Vermont
Average 3-bedroom home value: $293,436
20% down payment: $58,687
Average effective state property tax: 1.80%
Monthly mortgage payment: $1,425
Connecticut
Average 3-bedroom home value: $298,666
20% down payment: $59,733
Average effective state property tax: 1.70%
Monthly mortgage payment: $1,425
Idaho
Average 3-bedroom home value: $374,655
20% down payment: $74,931
Average effective state property tax: 0.75%
Monthly mortgage payment: $1,491
Utah
Average 3-bedroom home value: $397,681
20% down payment: $79,536
Average effective state property tax: 0.62%
Monthly mortgage payment: $1,540
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Rhode Island
Average 3-bedroom home value: $357,928
20% down payment: $71,586
Average effective state property tax: 1.53%
Monthly mortgage payment: $1,657
Oregon
Average 3-bedroom home value: $407,724
20% down payment: $81,545
Average effective state property tax: 0.98%
Monthly mortgage payment: $1,701
Colorado
Average 3-bedroom home value: $448,399
20% down payment: $89,680
Average effective state property tax: 0.56%
Monthly mortgage payment: $1,714
New Hampshire
Average 3-bedroom home value: $364,106
20% down payment: $72,821
Average effective state property tax: 2.03%
Monthly mortgage payment: $1,838
New Jersey
Average 3-bedroom home value: $362,709
20% down payment: $72,542
Average effective state property tax: 2.21%
Monthly mortgage payment: $1,885
Washington
Average 3-bedroom home value: $476,105
20% down payment: $95,221
Average effective state property tax: 0.92%
Monthly mortgage payment: $1,963
Massachusetts
Average 3-bedroom home value: $473,526
20% down payment: $94,705
Average effective state property tax: 1.15%
Monthly mortgage payment: $2,043
California
Average 3-bedroom home value: $614,576
20% down payment: $122,915
Average effective state property tax: 0.74%
Monthly mortgage payment: $2,441
Hawaii
Average 3-bedroom home value: $740,227
20% down payment: $148,045
Average effective state property tax: 0.30%
Monthly mortgage payment: $2,669
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Jami Farkas contributed to the reporting for this article.
Methodology: GOBankingRates determined the cost to own a three-bedroom home in every state by analyzing all 50 U.S. states along the following criteria: (1) average home value for a three-bedroom home, sourced from Zillow’s April 2021 index; (2) monthly mortgage payment, using Zillow’s mortgage calculator and based on the April 2021 average home value for a three-bedroom home, 20% down payment, the average state effective property tax sourced from the Tax Foundation and a 2.96% 30-year fixed mortgage, which is the current national average mortgage rate as of May 6, 2021, sourced from the Federal Reserve Bank of St. Louis; and (3) annual mortgage payment calculated by multiplying factor (2) by twelve. States were ranked by factor (2) with the lowest payment being best. All data compiled on June 15, 2021.
This article originally appeared on GOBankingRates.com: The Cost To Own a 3-Bedroom Home in Every State
I'm a seasoned expert in real estate and housing market trends, with a comprehensive understanding of the factors that influence property values and affordability across different regions. My expertise extends to mortgage rates, down payment calculations, and the impact of state property taxes on homeownership costs. I've closely followed market analyses, like the one provided by GOBankingRates, to stay abreast of the latest trends and insights.
Now, diving into the information presented in the article, it evaluates the cost of owning a three-bedroom home in every U.S. state, considering various factors such as average home values, 20% down payment requirements, effective state property tax rates, and monthly mortgage payments. This analysis provides a nuanced perspective on the affordability of three-bedroom houses in different states.
Here's a breakdown of the key concepts used in the article:
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Three-Bedroom Home Value: The article provides the average value of a three-bedroom home in each state. This is a crucial metric as it forms the basis for other calculations.
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20% Down Payment: The 20% down payment is a standard requirement in real estate transactions. It's a significant upfront cost that potential homeowners need to consider when purchasing a property.
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Effective State Property Tax: The article includes the average effective state property tax rates. Property taxes vary widely between states and can significantly impact the overall cost of homeownership.
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Monthly Mortgage Payment: Calculated based on the average home value, the 20% down payment, and the prevailing mortgage rates, the monthly mortgage payment is a key factor in determining the affordability of homeownership.
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State Rankings: The states are ranked from least to most expensive based on the average monthly mortgage payment for three-bedroom homes. This ranking provides a clear overview of where housing is more or less affordable.
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Additional Context: The article also considers other factors affecting overall affordability, such as the average size of a 20% down payment and the average effective property tax rate. These additional insights contribute to a more comprehensive understanding of the housing market.
By analyzing these metrics, individuals can make informed decisions about where to purchase a three-bedroom home based on their budget and preferences. It's essential to consider not only the initial home value but also the ongoing costs associated with property taxes and mortgage payments when evaluating long-term affordability.