As an American citizen, you might be surprised how far you can stretch your budget in certain states of the country. The housing market depends widely on where in the United States you are located. The price of a one-bedroom condo in Manhattan is the equivalence to a beachfront four bedroom home in much of the southeastern United States. There are good reasons for these differences, most often it’s all about, “Location, Location, Location!” In most areas of the United States, you will have to pay more for proximity to city centers, beaches, good schools or any other desirable locations.
A recent study has evaluated home affordability in all 50 states in America as well as the District of Columbia. The study done analyzed how much house, in square footage, you can buy with a maximum budget of $300,000. The home price can obviously vary dramatically depending on your location within a certain state. The price per square foot you’ll pay in Manhattan is higher than what you’d pay in rural areas of upstate New York. The seven states where a $300,000 budget will get you the most square-footage include Oklahoma, Alabama, West Virginia, Ohio, Arkansas, Mississippi, and Indiana.
In Oklahoma, $300,000 will get you a 3,175 square foot house. The only disadvantage is that Oklahoma has the highest sales tax rate of 8.82%. Alabama, on the other hand, has cheap real estate because for $300,000 you can get a 3,256 square foot home. Alabama also has the second largest property tax rate in the United States. West Virginia is the next state that also has one of the lowest property tax rates with the average billing amounting to just 0.59% of the home value. For a $300,000 budget, a person can get a 3,360 square foot home in West Virginia. The housing market in the state of Ohio is slightly cheaper than West Virginia. For $300,000 a person could buy a 3,366 square foot home. Ohio income tax rate is 4.997% and Ohio residents also pay an income tax to municipalities which are 3.38%. In the state of Arkansas for $300,000, you can buy a 3,390 square foot home. The state’s average property tax rate is the lowest in the nation at 0.62%. Arkansas also has one of the lowest property tax in the United States, with the average homeowner paying just $716 per year. Mississippi is the second cheapest state in the United States to buy a home being that a $300,000 budget can get you a 3,402 square foot home.Although Mississippi has reasonably low taxes, they also do not charge tax for retirees, making it a great retirement state. But if you’re looking for the cheapest state to own a house, then Indiana is the place to go! In Indiana, a $300,000 budget you can get a spacious home around 3,478 square feet. Indiana is also ranked as one of the top ten most tax-friendly states in the country meaning that after you buy the home you can even same a little money in your pocket every year!