Get All Access for $5/mo

Looking to Buy a Home for the First Time? These Are the Best (And Worst) States to Do It. A new survey offers a get-real guide for first-time homebuyers in the U.S.

By Jonathan Small

With interest rates soaring, finding a house is more complicated than ever for first-time buyers.

But some states offer more realistic deals than others for those looking to invest in a little slice of the American Dream.

Moneywise, a financial website, ranked all 50 states based on the median price for houses in each state as provided by Zillow and the average down payment percentage of 13% according to the National Association of Realtors.

Their findings? For one, it might be called the Aloha State, but Hawaii is not very welcoming when it comes to buying a home.

First-time home buyers in Hawaii must shell out an average down payment of $110,360.38 to secure a home, making it the most expensive state for first-home buyers. With limited land for development and burdensome regulations, Hawaii's median home value is a tsunami of $848,926.

If the surf and sand minus the tasty waves are what you're looking for, you might want to consider a state like Mississippi, where the average home goes for $157,828 with a down payment of $20,517.64

The number two most expensive state for first-time buyers in California. The Golden State lives up to its billing, with median home prices on Zillow ringing in at $760,800. The average downpayment on such a home is $98,904.

Here's a list of the priciest places to live.

Courtesy: Moneywise

Related: 9 Places in the U.S. With Small Town Charm and Affordable Home Prices

Most affordable states for first-time home buyers

So where should those looking to buy their first home look? According to this new survey, West Virginia is the best state to invest in, boasting the lowest average down payment requirement of $16,783.39. The median home price in West Virginia is $129,103, a steal compared to the national average of $428,700.

The aforementioned Mississippi is the second cheapest place to buy a home. After that, first-home buyers should look at Arkansas, Oklahoma, and Iowa.

"Armed with the knowledge from these findings, first-time home buyers can make informed decisions when it comes to choosing a state to buy their first home and work their way towards a brighter financial future," said a spokesperson for Moneywise.

Here is a list of the least expensive states to buy.

Courtesy: Moneywise

Jonathan Small

Entrepreneur Staff

Founder, Strike Fire Productions

Jonathan Small is a bestselling author, journalist, producer, and podcast host. For 25 years, he has worked as a sought-after storyteller for top media companies such as The New York Times, Hearst, Entrepreneur, and Condé Nast. He has held executive roles at Glamour, Fitness, and Entrepreneur and regularly contributes to The New York Times, TV Guide, Cosmo, Details, Maxim, and Good Housekeeping. He is the former “Jake” advice columnist for Glamour magazine and the “Guy Guru” at Cosmo.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Franchise

Kick-Start Your Small Business With These Cost Effective Strategies

Starting a small business is an exciting adventure, brimming with both opportunities and challenges. A key to success is effectively managing costs from the outset.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Business News

'I'm Shocked': Costco Customers Are Freaking Out About a Change to a Beloved Bakery Item

Costco customers are feeling burnt by a not-so-sweet switcheroo in the bakery department.

Science & Technology

5 Automation Strategies Every Small Business Should Follow

It's time we make IT automation work for us: streamline processes, boost efficiency and drive growth with the right tools and strategy.

Science & Technology

5 Rule-Bending AI Hacks to Make Your Mornings More Productive and Profitable

By 2025, AI will transform productivity by streamlining workflows and cutting costs. Major companies like Microsoft, Google, and OpenAI are leading the way, advancing AI into "Phase 3," where tools act as digital assistants. Discover 5 AI hacks to boost efficiency and redefine your daily routine.