The property markets across America have recovered well from the conditions of the pandemic; so well, in fact, that many have experienced soaring property prices, and such low inventory upward pressure continues to prevail.
That said, there are still plenty of pockets full of promise when it comes to affordable living and housing. Everything from economic strength, job opportunities, cost of living, housing affordability, educational options, crime rates, and more comes into play when considering the best places to buy property. Homebuyers should also consider hidden property costs, tax rates, home insurance premiums, and traffic congestion – and this all comes before even thinking about lifestyle and leisure preferences.
To keep it simple, we’ve compiled a list of the best places to buy in 2022 based primarily on current housing affordability and the cost of living. The cost of living index, sourced from worldpopulationreview.com, provides a percentage guide to living costs for an area, with 100% representing the average U.S. cost of living.
West Virginia
West Virginia is the perfect spot for lovers of the outdoors, with rolling hills and endless forestry to explore. The state is also well known for its small-town charm, with even the biggest cities remaining relatively small. Property values in West Virginia are currently averaging $124,896, and with a cost of living index of 91.1, the ‘Mountain State’ is a great choice for affordability. If you’re considering a move.
Virginia
To the north, in particular, Virginia is a little more expensive than West Virginia, with an average property value of $348,835. For example, homes in Alexandria and Arlington command higher average prices largely due to their proximity to Washington D.C. That said, the state maintains a relatively affordable cost of living index of 100.7, in line with the average for the country. Coupled with the strength of its economy and access to the Capital, Virginia remains a growth market that is great for investment.
Mississippi
With a cost of living index of just 86.1, and an average property price of $151,190, Mississippi certainly represents affordable living opportunities. Two of the most prolific industries in the state are manufacturing and agriculture. The state’s average incomes are lower than others, so it’s advised to have a job in place before moving to Mississippi. Mississippi is very rural and lacks any major city of its own, but out-of-state cities such as Memphis and New Orleans are within a two-hour drive.
Alabama
Alabama’s diverse economy mostly comprises manufacturing, healthcare, agriculture, and financial services, and boasts lower taxes than most other states. The crime rate is also low, making it a desirable option for those wanting to start a family in a relatively diverse state full of southern charm. Average property prices in Alabama are currently just $186,367, and the ‘Heart of Dixie’ also enjoys a low 89.3 cost of living index.
Kentucky
Manufacturing, agriculture, and healthcare also primarily keep the state of Kentucky’s economy strong. Known for its bourbon distilleries, horse farms, hunting, and leading U.S. college basketball programs, Kentucky is an affordable place to buy property, with current average prices sitting at $182,676, and a cost of living index of 90.9, keeping it well below the country’s average.
Iowa
Biotechnology and natural resource industries compliment Iowa’s diverse economy built around agriculture and manufacturing. With quality educational opportunities and low crime rates, the Hawkeye State offers a healthy 90.1 cost of living index, coupled with an affordable average property price of $178,608.
Oklahoma
With a cost of living index of 87, Oklahoma offers a range of attractive, mid-sized cities, a productive economy, and a younger population than many other states. The average property value is currently an affordable $164,698. Many employers, such as Walmart and the U.S. Department of Defense, operate in industries that are relatively recession-proof. Several Fortune 500 companies in the energy sector are also headquartered in the Sooner State.
Kansas
With its rugged American cowboy culture, Kansas is a welcoming prairie land rich in history. It also boasts a low 89 cost of living index, and property prices average just $192,747. The traffic is light in Kansas, too, making commuting relatively painless. Relying primarily on its agricultural economy, Kansas is one of America’s largest corn, wheat, soybean, and cattle producers.
Ohio
Ohio is the 7th largest state in the U.S. and is built around an economy that focuses primarily on manufacturing and the financial sector. Particularly stunning in the fall, this progressive state is bursting with creativity, especially in its largest city of Columbus. Average property prices in Ohio are currently $194,134, and the cost of living index is 90.8, making this exciting up-and-coming entrepreneurial state an affordable option for buyers.
Indiana
Another state with an economy driven primarily by agriculture, manufacturing, and healthcare, Indiana offers plenty of slow-paced rural living, as well as a faster pace in Indianapolis. The city of Indianapolis is gradually building itself up to emulate Chicago but on a smaller scale and with milder winters. Indiana offers low crime rates, decent education options, and an attractive 90 cost of living index. The average price of Indiana property is currently a relatively affordable $203,179.
Missouri
The state’s Missouri Economic Research and Information Center is a clue as to the kind of heavyweight employers that support its solid job opportunity scene. Employers such as Mercy Health System, Walmart, BJC Healthcare, and Washington University, to name just a few. There are also plenty of opportunities in biotech, retail, and business management. Missouri is fantastic for outdoor lovers, and its cost of living index is an impressive 87.1. The current average price of a property in Missouri is a relatively low $210,489.
Always Consider Housing Affordability and Cost of Living Before Settling.
Where you settle will depend on many personal factors, but housing affordability and cost of living are essential data sources to consider carefully. Despite such an overall boom in the U.S. property market in response to the lockdowns and falls in inventory, there are still many opportunities for solid investments, especially in areas with economies that are relatively recession-proof.
A married father of three, Justin Weinger works in private equity as a Corporate Finance Manager, he is also an avid blogger and personal finance enthusiast with a strong history of working in the automotive and publishing industry.
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