Best States to Buy a House in 2026: Full Affordability Rankings
We ranked all 50 states by affordability, appreciation, property taxes, and job market strength. #1: Mississippi ($175K median). #2: Ohio. #3: Indiana. Here's the complete analysis.
David Rodriguez
Refinance & Rate Specialist · NMLS #234567
How We Ranked the Best States to Buy in 2026
Affordability (40%)
Median home price vs. median household income. Monthly payment as % of income.
Appreciation (25%)
Year-over-year price growth. 5-year trend. Projected 2026-2027 appreciation.
Property Taxes (20%)
Effective property tax rate. Annual tax on median-priced home.
Job Market (15%)
Unemployment rate, job growth, major employer presence, income growth.
Top 10 Best States to Buy a House in 2026
Mississippi
Affordability Score: 9.4/10
$175,000
median price
Property Tax
0.65%
Appreciation
+3.2%
Monthly Payment*
$1,107
✓ Pros
Lowest home prices in the US, low property taxes, no state income tax on retirement
✗ Cons
Slower job growth, lower median incomes
Ohio
Affordability Score: 9.1/10
$215,000
median price
Property Tax
1.56%
Appreciation
+5.8%
Monthly Payment*
$1,360
✓ Pros
Strong job market (Columbus, Cleveland), low prices, strong appreciation
✗ Cons
Higher property taxes, cold winters
Indiana
Affordability Score: 9.0/10
$225,000
median price
Property Tax
0.87%
Appreciation
+5.1%
Monthly Payment*
$1,423
✓ Pros
Very affordable, low taxes, growing Indianapolis metro
✗ Cons
Limited coastal/mountain lifestyle
Michigan
Affordability Score: 8.8/10
$230,000
median price
Property Tax
1.54%
Appreciation
+4.9%
Monthly Payment*
$1,455
✓ Pros
Detroit metro rebounding, Grand Rapids growing, low prices
✗ Cons
Higher property taxes, weather
Arkansas
Affordability Score: 8.7/10
$185,000
median price
Property Tax
0.62%
Appreciation
+4.3%
Monthly Payment*
$1,170
✓ Pros
Second lowest prices, very low taxes, Bentonville tech hub growing
✗ Cons
Limited major metros
Tennessee
Affordability Score: 8.6/10
$295,000
median price
Property Tax
0.71%
Appreciation
+6.2%
Monthly Payment*
$1,866
✓ Pros
No state income tax, Nashville/Memphis growth, strong appreciation
✗ Cons
Prices rising fast, Nashville now expensive
Alabama
Affordability Score: 8.5/10
$195,000
median price
Property Tax
0.41%
Appreciation
+4.7%
Monthly Payment*
$1,233
✓ Pros
Lowest property taxes in US, low prices, Huntsville tech boom
✗ Cons
Lower median incomes in some areas
Texas
Affordability Score: 8.3/10
$305,000
median price
Property Tax
1.80%
Appreciation
+2.8%
Monthly Payment*
$1,929
✓ Pros
No state income tax, massive job market, diverse metros
✗ Cons
Very high property taxes, prices rose sharply 2020-2023
North Carolina
Affordability Score: 8.2/10
$320,000
median price
Property Tax
0.84%
Appreciation
+5.9%
Monthly Payment*
$2,024
✓ Pros
Research Triangle tech hub, Charlotte finance hub, strong appreciation
✗ Cons
Prices rising fast in metro areas
Georgia
Affordability Score: 8.1/10
$310,000
median price
Property Tax
0.92%
Appreciation
+5.4%
Monthly Payment*
$1,961
✓ Pros
Atlanta job market, no estate tax, diverse economy
✗ Cons
Atlanta traffic, prices rising
*Monthly payment at 6.85% rate with 20% down, P&I only. Data: NAR, Zillow, FHFA, Tax Foundation (Feb 2026).
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5 Least Affordable States to Buy in 2026
Hawaii
Highest prices in the US — avg $820K. Even with low property taxes, monthly payment exceeds $5,000.
California
Prices 3x the national average. High income taxes (13.3% top rate). Many metros unaffordable for median earners.
Massachusetts
Boston metro extremely expensive. High cost of living across the board.
New York
NYC drives up state average. High property taxes + high income taxes = brutal carrying costs.
Colorado
Denver metro prices surged 80% since 2019. Affordability crisis for median earners.
Frequently Asked Questions
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David Rodriguez
Refinance & Rate Specialist · NMLS #234567
David has 11+ years analyzing real estate markets and mortgage trends. He specializes in helping buyers identify the best markets for their budget and lifestyle goals.