Hawaii tops the list with a median home price of $974,000 and the worst price-to-income ratio in the nation at 8.8. Limited developable land on the islands, combined with strong demand from tourism and military spending, keeps home values elevated. California follows at $809,000 with a price-to-income ratio of 8.2. Five of the six most expensive large cities in America sit within California borders.

The Northeast is heavily represented among expensive states. Massachusetts ($686,000), New Jersey ($589,000), and New Hampshire ($528,000) all appear in the top ten. Strong job markets, proximity to major employment centers, and limited new construction keep supply tight and prices high in these markets.

West Virginia offers the lowest median home price in the nation at $170,000. The state's rural character keeps property values accessible, while property taxes remain modest at 0.59%. The price-to-income ratio of 2.9 means homeownership stays within reach for most middle-income families living in the state. Buyers moving from expensive states can realize significant savings on the purchase price tag alone.

Mississippi ($190,000), Louisiana ($213,000), Oklahoma ($219,000), and Arkansas ($220,000) round out the five cheapest states. Despite low purchase prices, these markets still saw positive year-over-year appreciation, suggesting that affordable housing does not necessarily mean declining real estate values. Average house prices across the South and Midwest remain well below the national median, offering accessible homeownership for first-time buyers.

West Virginia leads affordability with a 2.9 price-to-income ratio, meaning the typical home costs less than three years of median household income. Iowa (3.0), Kansas (3.2), and Oklahoma (3.3) follow closely. These states combine reasonable home values with local incomes that make homeownership genuinely accessible.

At the opposite extreme, Hawaii's 8.8 ratio means homes cost nearly nine years of median income. California (8.2) is similarly stretched. At the city level, the picture worsens dramatically. Los Angeles shows a ratio of 12.2, San Jose reaches 11.0, and New York City sits at 10.0. In these metros, buying a home without substantial existing wealth or dual high incomes is nearly impossible.

Rhode Island (+7.1%) and New Jersey (+6.8%) led state-level gains, continuing a trend of strong appreciation in the northeast real estate market. Tight inventory and growing buyer interest pushed home values higher as more remote workers relocated to these areas from New York City and other expensive metros.

Ohio (+6.1%), Illinois (+5.9%), and Connecticut (+5.7%) also posted strong gains. These markets benefited from relatively affordable starting prices and increased demand from buyers priced out of coastal housing markets. An experienced real estate agent can help buyers navigate these competitive markets effectively.

Texas led declines at -1.5%, driven largely by softening demand in major metros like Dallas and Austin. Jacksonville, Florida saw the steepest metro-level drop at -3.1%. Florida overall posted a -1.2% decline as rising home insurance premiums and property tax reassessments reduced buyer enthusiasm.

Mountain West states like Montana (-1.1%), Idaho (-0.8%), and Utah (-0.6%) also saw slight declines. These states experienced explosive price growth of 50% or more during 2020 to 2022, and the current softening reflects a natural correction as remote work migration patterns stabilize.

The pandemic era produced the sharpest price increases in modern housing market history. Between 2020 and 2022, the national median home price jumped from $336,900 to $457,300, a 35.7% increase in just two years. This surge was fueled by record-low mortgage rates, remote work flexibility, tight inventory, and a wave of millennial first-time home buyers entering the market simultaneously.

Since peaking in 2022, prices have pulled back modestly but remain well above pre-pandemic levels. The 2025 median of $410,800 is still 22% higher than the 2019 figure of $321,500. With mortgage rates stabilizing near 6.3% and new construction still lagging behind demand, most analysts expect prices to hold steady or rise slightly in 2026.

Factors Driving State-Level Price Differences

Understanding why home prices vary so much between states requires looking at several interconnected factors. Supply constraints play the biggest role. States with strict zoning laws, geographic limitations like coastlines and mountains, and slow permitting processes tend to have higher prices. California, Hawaii, and the Northeast corridors all face these constraints.

Job market strength also matters significantly. States with thriving tech, finance, and healthcare sectors attract higher-income workers who can bid up home values. Washington state and Massachusetts exemplify this pattern. Migration patterns shifted dramatically during the pandemic as remote workers moved from expensive coastal cities to more affordable inland areas, driving up prices in states like Idaho, Montana, and parts of the Southeast.

Property taxes and insurance represent hidden cost factors that vary widely between states. Texas has no state income tax but compensates with property tax rates near 1.90%, adding thousands annually to housing costs. Florida faces rapidly rising insurance premiums due to hurricane risk. New Jersey carries the highest property taxes in the nation at 2.46%. These ongoing expenses can significantly affect long-term affordability beyond the initial purchase price. For a complete breakdown, see our guide to property tax by state.

Working with a knowledgeable local real estate agent is one of the best ways to navigate price differences within a state. A skilled agent understands neighborhood-level pricing, can identify undervalued areas, and helps buyers make competitive offers. Our commission rates guide explains what to expect in terms of agent fees.