Louisiana Named Most Affordable State in U.S. to Buy a Home, According to New Study

Everything may seem like it's overpriced and out of our collective budgets these days, but here's a bit of good news if you are looking to buy a home in Louisiana.

According to research carried out by the experts at Pro Tool Reviews, Louisiana is the most affordable state in the United States to buy a house.

The study analyzed house price data and average salaries in the U.S. to reveal which states offer the most affordable homes in 2024.

What the research showed putting Louisiana in the top spot

House prices in Louisiana currently average around $245,000. And with the average salary in the state just over $54,000, it would take residents approximately three and a half years to save for a 15% down payment.

Only 13% of homes in the Bayou State sell for over the list price. This represents Louisiana as the fourth-lowest figure of all the states analyzed. 27.3% of homes in the state have their list price lowered before being sold.

How the top 10 stacked up

The following graphic shows the states at the of the list. As you can see, there is an Affordability Score for each state after all the data points are figured in.

Louisiana leads the way with a 7.58/10 Affordability Score.

(Click on the following graphic to enlarge.)

Price increases over the last five years

The study looked at the median house price increases over the last five years. And Louisiana also boded well in that stat category.

In 2019, the median house price in Louisiana was $206,500. Five years later we sit at $254,000, an increase of 23%.

And while that seems like a significant increase (and it is), that is still the smallest of all the states analyzed.

The city of New Iberia, interestingly enough, saw the biggest increase in house sale prices in Louisiana over the last five years, currently at 29.1%. On the flip side, Metairie has seen a 2.3% drop in the average list price.

Which states have seen the biggest increase in house prices over the last five years?

It may be a pretty area to see, but much of the northeast has seen a huge increase in house prices over the last five years.

The graphic below shows the states where house prices are rising the fastest. (Again, click on the graphic to enlarge.)

To view the complete report from Pro Tools Review, click here.