Median Home Prices By State: 2023 Edition

Whether you’re saving to buy a house in your home state or looking to make a move across the country, understanding home prices is a crucial component to building a budget and securing a promising financial future.

Median home values and housing market trends paint a picture of what you can expect before you begin the process of buying a home – but these trends might appear a little differently depending on where you look. In this article, we’ll break down the median cost of housing across the U.S., so you’re prepared for home buying regardless of where life may lead you.

As of the second quarter of 2022, the median home price in the U.S. was $440,300, according to the Federal Reserve Bank of St Louis. This is a significant increase in just a few years, with the median home price sitting at only $329,000 back in the first quarter of 2020.

But the specific cost of housing varies widely across the country. States with a higher cost of living will likely have higher home prices, but they may also have a higher average income. Home prices are also dependent upon the size of the home, so purchasing a starter home may run you less than the median home price in any given state.

But it’s also important to understand how housing market trends affect home prices. The COVID-19 pandemic impacted the housing market in several ways: first by creating a competitive seller’s market, which depletes the housing inventory and in turn raises home prices, and by encouraging a lifestyle shift from populous metropolitan areas to suburban living. These supply and demand shifts will continue to impact national averages over the next several years.

While understanding median home prices in your area of interest is important, it’s equally important to consider this information alongside other factors, such as the median household income. After all, you may not mind paying more to buy a house in your new state if you’re able to secure a higher paying job.

To learn more about median home prices across the U.S., check out the chart below.

To compile this list, Rocket Homes^SM leveraged median home price data from Best Places, median household income data from the U.S. Census Bureau and median home size data from the Federal Reserve Bank of St. Louis.

The following states have the highest average prices for a single-family home, but does that mean you should cross them off your list? Not necessarily. Though these states may have prices higher than the national average, their home sizes and household incomes may be higher to match – and there’s a reason these are considered some of the most popular states despite their high cost.

Hawaii

With a median home price of $732,000, Hawaii has the highest median home price in the country. But this isn’t a shock when you take the time to understand the appeal of the Aloha State, which is often considered one of the most desirable vacation destinations in the U.S.

Like many other states on this list, the median household income in Hawaii is higher to account for the higher cost of living, though that doesn’t mean everyone can afford to live here. Still, if you dream of buying a home in Hawaii, know that there are more affordable locations you can consider if you move further from tourist destinations – like Captain Cook, a small coastal town where the median home price drops to $611,400.

Hawaii Real Estate Listings

California

If we focus on the continental U.S., you’ll find the highest median house price in California – but it also has the sixth-highest median income. California is also known as one of the best places to invest in real estate, with high demand for housing and rapid home appreciation rates.

But it’s important to remember the sheer size of California – one of the largest states in the country – as it means that what you might experience in terms of scenery, activities and even price may differ dramatically depending on the part of the state you’re in.

If your heart is set on a home in The Golden State but you’re not sure if your budget can stomach it, consider some of the cheapest places to live in California.

California Real Estate Listings

Massachusetts

The state of Massachusetts has the third highest median home price and the third largest household income to match. The most populous state in New England, Massachusetts has seen positive economic growth in recent years – with the population growing 4.8% since 2020 and the job market increasing 4.0% in the last year.

If you’re thinking about a move to the Bay State, consider our tips for buying a home in Massachusetts and remember that finding more affordable housing options may mean avoiding popular, big name destinations like the city of Boston.

Massachusetts Real Estate Listings

Washington

With the fourth-highest median home price and the ninth-highest median household income, there’s no question that the State of Washington is an expensive place to live. In fact, the cost of living in Washington is 18.7% higher than the U.S. average, according to Best Places.

So why do so many Americans continue to migrate to this Pacific Northwestern state? Whether they’re drawn to its bustling cities or the endless opportunities for outdoor exploration – with an impressive 124 state parks – Washington continues to see population growth year after year. And it doesn’t hurt that this is one of only seven states without a state-level income tax!

Washington Real Estate Listings

Colorado

Although Colorado is the fifth most expensive state for home prices, it also has the second largest median home size in the country, with houses averaging at 2,243 square feet. This means home buyers are typically getting more home for what they’re paying in the Centennial State.

But spacious homes aren’t the only thing you’ll find in Colorado. From the creative community of Boulder to the cultural hub of Denver and the quaint college town of Fort Collins, there’s a lot to discover here. And outdoor enthusiasts will be thrilled by plentiful biking, hiking and skiing opportunities littered across the state.

Colorado Real Estate Listings

When you’re deciding where to live, it’s important to consider factors beyond the financials, including things like job opportunities, crime rates, and nearby activities or attractions.

But if affordability is a major factor for you and your family, consider the following list of states with the lowest median home prices in the country.

West Virginia

If you’re selecting a state solely based on affordability, West Virginia is the way to go, with the lowest median home price in the country at $114,600. And though the state also has a relatively low median household income ($48,037), the cost of living more than makes up for it.

In addition to saving on housing, residents of West Virginia pay less for utilities, transportation and even grocery costs, with the overall cost of living coming in 21.9% lower than the national average. Natives of the Mountain State have rated Bridgeport and Athens as the best cities to live in for 2022.

West Virginia Real Estate Listings

Mississippi

With a median home price of $141,900, Mississippi is the second most affordable state to buy a house in 2022 – but it also has the lowest median household income in the country.

Some of this states’ affordability may be due to the fact that there isn’t an influx of people moving here, with the population only growing 1.5% since 2020. And the job market is growing slower than average as well, with future job growth over the next decade projected at 29.3%, compared to the U.S. average of 33.5%.

Still, there are those who swear by living in the Magnolia State, which is known for small, quaint towns well-suited for raising families.

Mississippi Real Estate Listings

Arkansas

Arkansas has the third-cheapest median home price in the nation and a median household income similar to that of West Virginia. Overall, its cost of living is 21.0% lower than the U.S. average.

But if you think you have to spend big money to see a big return on your investment, think again. You may be surprised to discover that despite its affordability, Fayetteville, Arkansas is considered one of the best places to invest in real estate due to the city’s economic growth and rental vacancy rate. Other best cities to live in include the state capital of Little Rock, a historic city set along the Arkansas River, and the quaint city of Bentonville, where Walmart got its start.

Arkansas Real Estate Listings

Oklahoma

On top of having the fourth-lowest median home price in the country, Oklahoma is home to two of the most affordable big cities in America, Tulsa and Oklahoma City, where the cost of living is 16.8% and 14.6% lower than the national average, respectively.

And in addition to an affordable cost of living, the Sooner State offers a breath of fresh air for anyone moving from a densely populated state because despite its big cities, the state is primarily made up of rural and suburban areas.

Oklahoma Real Estate Listings

Iowa

The state of Iowa has the fifth-cheapest median home price in the country at $161,700. With a median household income of $61,836, Iowa comes up just 5% shy of the national income median despite having a cost of living 16.3% below the national average.

But Iowa has more to offer than sheer affordability. According to U.S. News’ 2022 Best State Rankings, Iowa is considered the #12 best state to live in overall, and the #1 state to live in for “opportunity,” which refers to the state’s poverty levels, housing affordability, and equality for women, minorities and people with disabilities.

Iowa Real Estate Listings

Buying a home in any state can be a bit of a process but understanding home prices before you begin your home search can help you better set your budget and expectations.

But remember, medians are situated in the middle of a set of numbers, meaning there is an equal opportunity that you could end up paying above or below the median home price in any given state depending on the exact location, size and condition of the property.

Once you have a location in mind, use the Home Affordability Calculator to find out how much home you can afford in your dream state.