10 States With the Lowest Home Prices in 2022

Grab a box of tissues -- we've crunched the numbers, and Hawaii still doesn't make the list.

Two years ago, the housing market started seriously heating up. With mortgage rates at all-time lows, buyers flocked to the market. As a result, home prices in the U.S. increased by more than 30% from 2020 to 2022, according to recent Motley Fool Money research. Despite this, homes continue to sell within days of being listed. 

However, housing in some states remains affordable. The following states have the most affordable home prices this year, way less than the national median of $428,700.

10 states with the most affordable homes

1. West Virginia has the lowest home prices in the United States. The typical single-family home costs $137,286. Bonus: West Virginia also boasts some of the lowest property taxes in the country.
2. Mississippi comes in a close second with a typical home value of $164,132. Even though Mississippians' incomes are less than one-third of the national median, the average mortgage payment is only 22.7% of the state's median income -- well below the 28% threshold advised by many financial experts.
3. Arkansas offers some of the most affordable homes in the U.S. The median home value is $177,710. That's a meager 41% of the typical U.S. home price.
4. Oklahoma is plenty affordable with a median home value of $181,574. And towns like Okmulgee, Okla., offer even more bang for your buck: The average price of a home in Okmulgee is a budget-friendly $69,800.
5. Iowa combines affordable housing with higher incomes. The typical home value is $192,568. Homeowners typically spend less than 17% of their income on mortgages.
6. Kentucky offers good value to prospective home buyers. The typical home value is $197,644. That's a mere 46% of the median price of a U.S. home.
7. Alabama homes are affordable. The typical home value is $204,965. Consider checking out the historic city of Huntsville "Rocket City," AL, which has a median home value of $184,500 and is the sixth-best city to buy a house in, according to Niche.
8. Kansas is another state that combines low housing prices with higher incomes. The median home value is $206,176. Homeowners typically spend less than 18% of their income on mortgages.
9. Ohio is an affordable place to purchase a home. The typical home value is $213,360. Cleveland, Ohio, rocks a median home value of $73,400 and has some of the lowest costs of living in America. Bonus: Niche also ranks Cleveland as one of the best cities for young professionals. 
10. Louisiana rounds out the top 10 states with the most affordable homes. A typical home in the Pelican State costs $214,522. Louisiana has replaced Indiana as the 10th-most affordable state to own a home as of 2022.

Is now the right time to buy?

If sky-high prices have you rolling your eyes and clucking your tongue, you're not alone. The home-buying market is cooling as buyers retreat from the blood-soaked, Zillow-fueled battlefield. It's rough out there. If you're thinking of buying a home in one of the above-mentioned states, you'll find them more widely affordable than homes elsewhere. Note: Even though home prices are high, mortgage rates remain historically low.

Before committing to buying a house, consider whether you're prepared for the big move. There are a few things you can do to prepare: 

• Brush up on how to boost your credit score to secure lower mortgage rates. Don't apply for new credit cards right before buying a home! You want to avoid negatively impacting your credit score while locking in mortgage rates.
• Have a down payment ready -- preferably at least 20% of the home's value. Paying a higher down payment will lower your mortgage rate and save you money in the long run. It also helps to protect you from going underwater on your mortgage.
• Pad your emergency fund. Be prepared for unexpected home-related expenses before they arrive.

Hopefully this guide will help you shop and compare home prices across the country. There are affordable homes out there for savvy shoppers. Plus, the sandy shores of Honolulu pale in comparison to the allure of sparkling Gulf Coast beaches when eye-watering mortgage expenses come calling.