In 2019, there was not a single state in the United States where a minimum wage worker working 40 hours a week could afford to rent a two-bedroom apartment, according to a report from the National Low Income Housing Coalition. The lack of affordable housing has become a national problem, extending beyond cities known for their high cost of living, such as New York and San Francisco.
If you have a certain financial capacity, it would be wise to invest in real estate in the United States, whether to generate a regular rental income, to have a foot à terre in one of the most beautiful destinations in the world or to realize a more value on resale… or even all three! We offer a top 5 US states with the cheapest real estate prices in the country.
To be read in addition : 4 good reasons to invest in new real estate
Plan de l'article
Some eloquent figures
Seven of the ten most interesting states in this area are in the South and three in the Midwest. In the top 25, the South claims 11 states and the Midwest claims 10. Of the four other states in the top 25, three are located in the Western Mountains (New Mexico, Wyoming and Arizona), and only one is located in the northeast (Pennsylvania). The top 10 states stand out on three indicators:
- The median price per square meter;
- The median value of houses;
- Average management fees in the case of a rental investment.
Note that the prices shown to you are in dollars. In 2019, one US dollar was worth an average of €0.91.
Read also : Home insurance: what area to declare ?
#1 The West Virginia
The top state in this study, West Virginia, has a median price of $169,000. The median value of the lower third is $40,700. The median price per square meter is the second in the ranking. The real property tax rate is 0.57%, one of the lowest in the West!
Houses in Arkansas have the second lowest median price in the entire study, at $179,900. The State also ranks third in the lowest median prices per square metre, and the fourth lowest median values in the lower third, at $55,000. The effective property tax rate in Arkansas is 0.61%.
Alabama ranks third, with the second lowest effective tax rate in this study, at 0.40%. The State ranks fourth in the median price per square metre, and third for the median value in the lower third, at $51,500. The tension on the rental property stock is very high in this state. This is, by far, the best state to consider if you covet the regular income of rental real estate investment!
#4 The Mississippi
Let’s continue with Mississippi, another southern state. It ranks fourth in our list of the five cheapest states when it comes to buying real estate. The median price per square meter in Mississippi is about $195.75, the lowest in this study for this measure. The overall median price of Mississippi is approximately $189,000. The actual rate of property tax in the state is 0.78%. To put things into perspective, the average effective rate of property tax in the United States is about 1.11 %.
The median value of Oklahoma for the lower third is only $49,500, the second lowest figure in this study for this measure. The actual rate of property tax is 0.89%, thus occupying the 23rd position on this measure throughout the country. Oklahoma also has a tension on the rental property stock.
This article has been proposed to you by http://www.p2v.fr/, a website specializing in the advice of residence and immigration in the United States.