Housing Costs by State 2026
Housing drives 60-70% of the variation in cost of living between states. Median home price, average 2-bedroom rent, mortgage affordability at current rates, and the income required to comfortably buy in each state.
All 50 states
Housing affordability ranked
Sorted by median home price (cheapest first). Required income assumes 20% down at a 6.58% 30-year fixed rate, with property taxes and insurance escrowed.
| State | Housing index | Median home | Avg 2BR rent | Median income | Price-to-income | Mortgage P&I | Required income |
|---|---|---|---|---|---|---|---|
| West Virginia | 56.8 | $145,600 | $780 | $50,884 | 2.9x | $742/mo | $38,056 |
| Mississippi | 56.2 | $162,100 | $810 | $46,511 | 3.5x | $827/mo | $42,369 |
| Arkansas | 62.0 | $192,800 | $830 | $52,528 | 3.7x | $983/mo | $50,393 |
| Oklahoma | 60.8 | $196,500 | $880 | $56,956 | 3.5x | $1,002/mo | $51,360 |
| Louisiana | 72.5 | $198,200 | $930 | $52,295 | 3.8x | $1,011/mo | $51,804 |
| Kentucky | 66.2 | $198,500 | $870 | $55,573 | 3.6x | $1,012/mo | $51,883 |
| Kansas | 62.0 | $207,600 | $940 | $64,521 | 3.2x | $1,058/mo | $54,261 |
| Iowa | 69.8 | $208,700 | $890 | $65,573 | 3.2x | $1,064/mo | $54,549 |
| Ohio | 68.5 | $210,500 | $960 | $61,938 | 3.4x | $1,073/mo | $55,019 |
| Alabama | 66.8 | $216,500 | $920 | $56,950 | 3.8x | $1,104/mo | $56,587 |
| Missouri | 67.5 | $222,300 | $950 | $61,043 | 3.6x | $1,133/mo | $58,103 |
| Indiana | 72.1 | $227,800 | $970 | $61,944 | 3.7x | $1,161/mo | $59,541 |
| Michigan | 72.8 | $235,400 | $1,050 | $63,498 | 3.7x | $1,200/mo | $61,527 |
| Nebraska | 74.5 | $246,800 | $1,010 | $65,720 | 3.8x | $1,258/mo | $64,507 |
| North Dakota | 81.2 | $248,500 | $920 | $66,519 | 3.7x | $1,267/mo | $64,951 |
| Illinois | 80.7 | $262,500 | $1,220 | $72,205 | 3.6x | $1,338/mo | $68,610 |
| Wisconsin | 79.2 | $265,800 | $1,080 | $67,125 | 4.0x | $1,355/mo | $69,473 |
| Pennsylvania | 93.5 | $268,500 | $1,180 | $67,587 | 4.0x | $1,369/mo | $70,179 |
| South Carolina | 79.5 | $278,600 | $1,180 | $59,318 | 4.7x | $1,420/mo | $72,819 |
| South Dakota | 86.5 | $285,400 | $920 | $63,920 | 4.5x | $1,455/mo | $74,596 |
| New Mexico | 81.2 | $287,500 | $990 | $53,992 | 5.3x | $1,466/mo | $75,145 |
| Tennessee | 75.8 | $298,500 | $1,180 | $59,695 | 5.0x | $1,522/mo | $78,020 |
| Wyoming | 86.2 | $298,500 | $920 | $65,003 | 4.6x | $1,522/mo | $78,020 |
| Texas | 81.5 | $298,700 | $1,320 | $67,321 | 4.4x | $1,523/mo | $78,072 |
| Georgia | 80.7 | $310,200 | $1,340 | $65,030 | 4.8x | $1,582/mo | $81,078 |
| Minnesota | 88.5 | $318,500 | $1,220 | $77,706 | 4.1x | $1,624/mo | $83,247 |
| North Carolina | 85.5 | $318,600 | $1,220 | $62,891 | 5.1x | $1,624/mo | $83,273 |
| Alaska | 128.3 | $345,700 | $1,330 | $77,640 | 4.5x | $1,763/mo | $90,357 |
| Delaware | 96.5 | $355,400 | $1,310 | $72,724 | 4.9x | $1,812/mo | $92,892 |
| Maine | 115.2 | $365,800 | $1,280 | $64,767 | 5.6x | $1,865/mo | $95,610 |
| Vermont | 123.5 | $378,500 | $1,380 | $65,792 | 5.8x | $1,930/mo | $98,930 |
| Virginia | 112.8 | $385,200 | $1,480 | $80,615 | 4.8x | $1,964/mo | $100,681 |
| Arizona | 107.8 | $394,200 | $1,380 | $69,056 | 5.7x | $2,010/mo | $103,033 |
| Connecticut | 113.0 | $395,100 | $1,520 | $83,771 | 4.7x | $2,014/mo | $103,269 |
| Florida | 107.3 | $398,500 | $1,620 | $63,062 | 6.3x | $2,032/mo | $104,157 |
| Maryland | 140.5 | $398,500 | $1,620 | $87,063 | 4.6x | $2,032/mo | $104,157 |
| Montana | 103.8 | $415,200 | $1,120 | $62,043 | 6.7x | $2,117/mo | $108,522 |
| Rhode Island | 118.5 | $418,500 | $1,520 | $71,169 | 5.9x | $2,134/mo | $109,385 |
| Idaho | 96.1 | $420,300 | $1,150 | $63,527 | 6.6x | $2,143/mo | $109,855 |
| New Hampshire | 120.2 | $425,800 | $1,580 | $83,449 | 5.1x | $2,171/mo | $111,293 |
| Nevada | 115.8 | $435,600 | $1,480 | $66,274 | 6.6x | $2,221/mo | $113,854 |
| New York | 155.8 | $435,800 | $1,780 | $74,314 | 5.9x | $2,222/mo | $113,906 |
| New Jersey | 128.5 | $472,500 | $1,720 | $85,245 | 5.5x | $2,409/mo | $123,499 |
| Utah | 115.2 | $475,800 | $1,380 | $74,197 | 6.4x | $2,426/mo | $124,361 |
| Oregon | 132.5 | $498,500 | $1,520 | $70,084 | 7.1x | $2,542/mo | $130,295 |
| Colorado | 118.9 | $525,600 | $1,680 | $82,254 | 6.4x | $2,680/mo | $137,378 |
| Washington | 130.2 | $568,500 | $1,780 | $82,228 | 6.9x | $2,899/mo | $148,591 |
| Massachusetts | 210.5 | $598,700 | $2,280 | $89,645 | 6.7x | $3,053/mo | $156,484 |
| California | 196.5 | $785,300 | $2,120 | $84,907 | 9.2x | $4,004/mo | $205,256 |
| Hawaii | 318.6 | $978,200 | $2,350 | $84,857 | 11.5x | $4,988/mo | $255,675 |
Sources: US Census ACS 5-year estimates, Zillow ZHVI, Apartment List rent reports. Reference 30-year fixed mortgage rate 6.58% (Freddie Mac PMMS, 23 July 2026).
Cheapest 10 for housing
Where homes are most affordable
- #1West Virginia$145,600
- #2Mississippi$162,100
- #3Arkansas$192,800
- #4Oklahoma$196,500
- #5Louisiana$198,200
- #6Kentucky$198,500
- #7Kansas$207,600
- #8Iowa$208,700
- #9Ohio$210,500
- #10Alabama$216,500
Most expensive 10 for housing
Where homes cost the most
- #1Hawaii$978,200
- #2California$785,300
- #3Massachusetts$598,700
- #4Washington$568,500
- #5Colorado$525,600
- #6Oregon$498,500
- #7Utah$475,800
- #8New Jersey$472,500
- #9New York$435,800
- #10Nevada$435,600
Frequently Asked
Housing costs, answered
What is the cheapest state for housing in 2026?
West Virginia at a median home of $145,600 (housing sub-index 56.8). Mississippi ($162,100) and Arkansas ($192,800) follow. All three offer median household incomes that, while below the national average, support comfortable home ownership.
Is it cheaper to rent or buy in 2026?
Depends on the state. With 30-year fixed mortgage rates around 6.58%, the breakeven price-to-rent ratio sits around 18-20. States below that ratio favour buying (Mississippi, West Virginia, Ohio, Indiana). States above 25 favour renting (Hawaii, California, Washington, Oregon). New York is split: NYC favours renting; upstate favours buying.
How much income do I need to afford a median home?
Using the standard 28% debt-to-income rule, 20% down, and current rates, the required income to afford the national median home (~$295,000) is around $77,105. In Hawaii it climbs past $255,675. In West Virginia it drops to $38,056.
What's the home-price-to-income ratio?
Median home price divided by median household income. A ratio of 3 is healthy and historically common. Anything above 5 is stretched. Hawaii's ratio is 11.5, California's 9.2, both signs of severe affordability stress. Iowa, Indiana, Ohio sit at 3.2-3.7, the most affordable in the country.
Why is housing the biggest factor in cost of living?
Because it's the largest single line item in most household budgets (typically 28-33% of pre-tax income at the median) AND has the highest variance between states. Groceries cluster within 25 points of average; housing ranges from 56 (Mississippi) to 318 (Hawaii). The housing sub-index essentially defines the COLI for most states.