This Map Shows The Cheapest States To Buy A House And We're Moving To Iowa

Over the past several years, the housing market has become increasingly unaffordable to families. Mortgage rates have skyrocketed while wages have remained flat, and then sprinkle in supply shortages, the pandemic, and inflation. It's a perfect brew for making owning a home seem legitimately impossible. But there's a new map that might help.

The financial reality for a lot of parents seems grim. Studies have shown that most people can't afford a home in their state, which holds true whether they're buying a home or renting. Mortgage rates have increased, with the "typical" monthly payment rising by 39% in the last year, pushing people to look for rentals.

The reality is that rent payments aren't much better in terms of affordability. In some cities, rental prices have increased by 40% over the past year. And while the national average asking price for both one- and two-bedroom apartments have fallen slightly, experts have warned that we shouldn't hold our breath for prices to drop back to affordability.

Given this market, Homebuyer.com compiled data to narrow down which states were the cheapest to buy a house and which were the most expensive. Then, they looked at each state's median home value and median household income data to determine affordability.

"We assumed all home mortgages were bought with a 30-year loan and a four percent interest rate for the purpose of this study," Homebuyer.com explained.

Each state's income-to-mortgage ratio was then calculated to determine the percentage of income used each month to cover the mortgage payments. And that calculated percentage was used to help rank the states, including the cheapest states to buy a house and the most expensive ones. Here's what Homebuyer.com found.

Cheapest States to Buy a House:

1. Iowa

• Median home price: $147,800
• Median household income: $79,500
• Estimated monthly mortgage payment: $702.22
• Income-to-mortgage: 10.60%

2. Indiana

• Median home price: $141,700
• Median household income: $73,300
• Estimated monthly mortgage payment: $673.23
• Income-to-mortgage: 11.02%

3. Ohio

• Median home price: $145,700
• Median household income: $73,300
• Estimated monthly mortgage payment: $692.24
• Income-to-mortgage: 11.03%

4. Nebraska

• Median home price: $155,800
• Median household income: $79,400
• Estimated monthly mortgage payment: $740.22
• Income-to-mortgage: 11.19%

5. Kansas

• Median home price: $151,900
• Median household income: $77,400
• Estimated monthly mortgage payment: $721.70
• Income-to-mortgage: 11.19%

Rounding out the top ten cheapest states to buy a house includes Mississippi, West Virginia, Oklahoma, Michigan, and Arkansas.

It's also important to know which states have the highest income-to-mortgage ratio, especially for families looking to move to allow for more financial stability. Looking at the top five most expensive states to buy a house, the affordability measure is double — triple in some states — what the cheapest states' income-to-ratio sits at.

Most Expensive States to Buy a House:

1. Hawaii with an income-to-mortgage ratio of 35.15%
2. California with an income-to-mortgage ratio of 31.96%
3. Oregon with an income-to-mortgage ratio of 21.92%
4. Washington with an income-to-mortgage ratio of 21.10%
5. Colorado with an income-to-mortgage ratio of 21.05%

For more details, including the income-to-mortgage ratio in the other states, check out Homebuyer.com's full report.