1. Cheapest States to Buy a House May 2021

2021 has seen one of the largest real estate spikes in U.S history due to a massive shortage of housing and rental supply. Many people are moving out of what once were affordable states such as Arizona to other more affordable states. Click on THIS to open an excel sheet I created for a compilation of states from cheapest to most expensive to purchase a house as of May 2021. The excel sheet also includes the percentage and dollar change from 12 months ago. One thing to note is that many of these more affordable states have cities within that are some of the most violent in America and usually do not have the same jobs opportunities as other more expensive states depending on the industry. Cheapest States Houses and Condos

Alternatively, if you hate excel, I’ve copied the information below. House hacking is another great way to curve against rising home prices. When you house hack, you purchase a 2-4 plex multifamily home and rent out the other units while living in one of the units. If you do the math and purchase an undervalued multifamily home, the rent from the other units should be able to cover your housing expenses if not turn a slight profit. If the multifamily home is overpriced from an investment perspective, then once you move out of the unit and rent it out, you will most likely cash flow negatively although the appreciation and amortization may make up for it. This is still a lot better in terms of building long term wealth as opposed to purchasing a single family home to live in, in this market. However, in virtually all markets, single family homes appreciate at a much faster rate than multifamily homes so it is important to look at the appreciation and rental data in your market. You could also do this by purchasing a single family home or condo and renting out the other bedrooms while living in one of the bedrooms.

If buyers in Phoenix Metro Arizona are priced out of the market, I would recommend house hacking, purchasing a used or manufactured home, looking far out such as Coolidge, Casa Grande, Eloy, Tucson etc, moving out of state, purchasing from FSBO’s on Zillow and waiting a few years for the supply of homes to increase as the housing industry nationwide is short of millions of homes. Arizona has seen the second highest year over year change in the past 12 months at nearly 20% and $74,000 only second to Idaho. The state should consider changing the name of Arizona to Skid Row or California 2.0. All kidding aside, if you’re moving out of state and need an agent referral to purchase a home outside of Arizona, give me a call at 480-779-8579 or email me at [email protected]

States Average Home Price 1 Year % Change 1 Year $ Change

West Virginia $117,000 6.2% $7,254
Mississippi $138,000 7.1% $9,798
Arkansas $145,000 8.5% $12,325
Oklahoma $146,000 8.5% $12,410
Iowa $163,000 5.8% $9,454
Alabama $165,000 10.3% $16,995
Kentucky $166,000 9.1% $15,106
Kansas $173,000 9.8% $16,954
Ohio $176,000 12.6% $22,176
Indiana $180,000 11.3% $20,340
Louisiana $183,000 5.4% $9,882
Missouri $188,000 11.6% $21,808
Nebraska $201,000 9.5% $19,095
Michigan $202,000 11.5% $23,230
South Carolina $217,000 10.5% $22,785
Tennessee $218,000 11.8% $25,724
Wisconsin $223,000 11.4% $25,422
Pennsylvania $225,000 12.1% $27,225
Illinois $230,000 8.9% $20,470
Georgia $236,000 11.7% $27,612
South Dakota $236,000 8.1% $19,116
Texas $236,000 10.7% $25,252
North Carolina $238,000 12.3% $29,274
New Mexico $240,000 13.4% $32,160
North Dakota $244,000 3.9% $9,516
Wyoming $269,000 4.2% $11,298
Florida $283,000 11.0% $31,130
Vermont $287,000 9.4% $26,978
Maine $292,000 15.0% $43,800
Minnesota $292,000 9.4% $27,448
Delaware $298,000 12.3% $36,654
Alaska $300,000 2.8% $8,400
Connecticut $305,000 16.0% $48,800
Virginia $319,000 9.8% $31,262
Montana $341,000 14.2% $48,422
Nevada $349,000 10.6% $36,994
New Hampshire $352,000 15.0% $52,800
Maryland $358,000 12.0% $42,960
Rhode Island $358,000 14.7% $52,626
New York State $359,000 9.6% $34,464
Arizona $375,000 19.8% $74,250
Idaho $378,000 25.0% $94,500
New Jersey $395,000 13.2% $52,140
Oregon $425,000 13.2% $56,100
Utah $430,000 18.1% $77,830
Colorado $468,000 12.1% $56,628
Washington $497,000 14.9% $74,053
Massachusetts $498,000 13.2% $65,736
New York City $652,000 2.5% $16,300
California $655,000 12.5% $81,875
Hawaii $708,000 7.2% $50,976