Affordable Housing: The Best States in 2025
According to a recent report by The Wall Street Journal, the anticipated spring housing market has considerably underperformed this year. Economic uncertainty, coupled with mortgage rates hovering around 6.72%, has deterred potential buyers. With more homes listed for sale, the demand does not seem to align with the increasing inventory, leading to fluctuating home prices in various regions.
However, certain states are still conducive for those seeking affordable housing options.
Criteria for Ranking States
In its 2025 Best States list, U.S. News & World Report evaluated numerous data points to assess each state based on factors such as:
- Crime rates
- Economic performance
- Educational quality
- Fiscal health
- Healthcare access
- Infrastructure
- Natural environment
- Opportunities for residents
Using a combination of these metrics and data from the Bureau of Economic Analysis, the report also highlighted states that excel in housing affordability. It’s important to note that states ranking high in affordability often trail in other areas like poverty rates, median household income, and food security.
Top Five States for Housing Affordability
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Mississippi
Affordability Ranking: 2 | Overall Best States Ranking: 48
The average home value in Mississippi is approximately $189,710 according to Zillow.
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West Virginia
Affordability Ranking: 3 | Overall Best States Ranking: 46
The average home value in West Virginia stands at about $167,250.
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Arkansas
Affordability Ranking: 1 | Overall Best States Ranking: 44
In Arkansas, the average home value is reported to be around $217,895.
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Alabama
Affordability Ranking: 8 | Overall Best States Ranking: 45
The average home price in Alabama is approximately $281,400, as per Redfin.
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Kentucky
Affordability Ranking: 10 | Overall Best States Ranking: 39
The average home price in Kentucky is about $263,400, according to Redfin.