From Coast to Coast: Median Home Prices in Every State

What does the median house cost?

Location, location, location. Perhaps nothing impacts an area’s median home price more.

Why is the median home price significant? Because it gives insight to the midpoint of a particular housing market. If you’re looking to buy property, it provides a general expectation for the values in an area. If you’re a seller, it offers a baseline price for homes around you.

See how all the states stack up and where the you can find the most and least expensive homes in the U.S.

In this article (skip to...)

• Median versus average
• U.S. home costs
• Home prices by state
• When will home prices be affordable?
• Should I buy a home in 2024?
• FAQ

Median versus average

Median and average are mathematical methods used for finding the typicality or “central tendency” of a data set. They often get conflated or used interchangeably, but they embody slightly different concepts.

A median is defined as the middle value in a group of numbers. An average is the quotient from that group: the sum total divided by the group’s count. Depending on the situation, one could give a better feel for the data set than the other. The practical distinction between the two is that averages get skewed by outliers.

When determining the central value for housing prices, using the median tends to better represent what home buyers and sellers can expect in a particular market. That’s because the median doesn’t get pulled in either direction by a bargain teardown or a multi-million-dollar mansion, while still accounting for the entire group of values.

For example, let’s say six homes just sold at the following prices:

• $150,000; $300,000; $350,000; $400,000; $450,000; $1,200,000

The data set in the example above has an average price of $475,000 and a median of $375,000. Skewed by the biggest outlier — in this case, the $1.2 million home — the average is a larger value than all but one house’s selling price. Whereas the median much closer represents the overall group. If you only looked at this average home price without considering the median, you’d assume this housing market was more affluent than it actually was.

How much does a home cost in the United States?

The U.S. median home sales price reached $402,646 in December 2023. That figure rose 3.7% year-over-year and decreased 1.4% month-over-month, according to Redfin. Compared to five years prior, the median home price was $278,630 in December 2018, a growth of 44.5%.

Real estate generally follows seasonal patterns, typically with higher demand (and therefor, prices) in the spring and summer, before slowing over the fall and winter. We’ve also witnessed bubbles and boom periods — most recently in 2007 and 2020, respectively — where superficial conditions or black swan events led to rapid housing value growth.

The rate of home price growth decelerated in 2023, as interest rates jumped to 20-year highs, squeezing both affordability and buyer demand. However, many industry experts anticipate mortgage rates to come down — especially with the Federal Reserve’s latest monetary plan — and for-sale inventory to improve over the course of 2024.

Regional variations in the real estate market

Of course, real estate can differ from metro area to metro area and even from town to town. Understanding these geographical variances can significantly help your house hunt and manage expectations.

Due to a concentration of jobs and amenities, high population cities and surrounding areas tend to be more expensive than their rural counterparts. Topography also plays a huge role in determining home values. By and large, properties near bodies of water or natural wonders like mountain ranges typically garner more demand and higher prices than comparable landlocked homes.

Median home prices by state

Naturally, the median home price varies by state. With 50 states plus Washington D.C., the range can span widely.

The table below shows the median home price in every state as of December 2023, according to Redfin. Each link brings you to an article on that state’s specific first-time home buyer lending programs and grants.

States with the most expensive homes

Based on median home price in December 2023, the three most expensive states were Hawaii at $757,800, California at $756,800 and Colorado at $584,200. Though not a state, Washington D.C. would’ve landed third with a median housing cost of $600,000.

The top states for annual growth all hail from the Northeast. Connecticut led the way with a year-over-year rate of 13%, followed by New Jersey’s 12.8% and Vermont’s 11.4%.

States with the most affordable homes

On the flip side, the cheapest median housing prices came in Iowa at $221,400, Ohio at $221,800 and Mississippi at $228,800. Homes in Washington, D.C. showcased the nation’s largest year-over-year drop in median price at 4.8%. For the rest of the states, median prices fell 4.5% in Mississippi and 2.2% in Louisiana, while only inching up 0.3% in North Dakota.

When will home prices be affordable again?

For years, affordability has been the fork in the soup for prospective home buyers.

The rock-bottom interest rates of the pandemic spurred intense borrower demand and record-high home price growth. However, that growth rate flattened out in 2023 and even went negative in certain housing markets — mostly those that saw unsustainable expansion during the Covid era’s height, like Boise, Idaho.

Whether that trend will continue in 2024 is yet to be seen and relies on multiple factors. Many experts believe mortgage rates will hit a downcycle and gradually decrease, making mortgage payments less expensive. However, that would likely swell home buyer demand and cause prices to rise.

The ongoing lack of for-sale inventory gives sellers an advantage and perhaps carries the most weight in balancing the market. Or, as First American deputy chief economist Odeta Kushi put simply; “house prices are set at the intersection of supply and demand.” However, there could be relief on the way as inventory indicators paint a positive outlook. At the end of 2023, active listings, building permits, housing starts, and housing completions all increased year-over-year.

Like most facets of real estate, home values and the pace of price growth are hyperlocal. That’s why it’s important to research the area you want to buy in and speak with a mortgage professional in that place.

Of course, not every housing market is created equal. Some are better suited for first-time home buyers or Gen Zers, help stretch your money further, or more conducive to military veterans.

You can also boost your financial profile and borrowing power by finding better ways to save, strategically lowering your mortgage payments, and leveraging government home buying programs and grants.

Should I buy a home in 2024?

Prospective home buyers should expect improvements in mortgage rates and the amount of properties for sale compared to 2023. They should also anticipate heightened demand from all those who sat on the sidelines for lower interest rates.

This all begs the question of whether you should buy a house now or wait? A pragmatic rule some mortgage pros will tell you is, “the best time to buy a home is when you can afford it.” That means avoiding becoming house poor and living beyond your financial comfortability.

Locking in a mortgage and owning a home also comes with the benefit of building equity. Home equity rises with housing values and is how many people accumulate wealth. Once you have enough of your mortgage paid off, you can leverage your property’s equity in a variety of ways.

Mortgage rates are also famously volatile and typically cyclical. If you locked in a comparatively high interest rate, you can always refinance when rates decrease to lower your payments.

Whether you take the plunge into homeownership in 2024 or the future, it’s always good to be prepared so you can take action when the right opportunity comes along.

Frequently Asked Questions

The bottom line

With a country so big and diverse, it’s no wonder the median house price can vary greatly from state to state.

Since affordability is a hurdle for many potential home buyers, plan out your budget, check to see if you qualify for any payment assistance grants and programs in your state.

If you’re ready to become a homeowner, reach out to a local mortgage lender today.