Where’s the Cheapest Real Estate in the U.S.?

Finding cheap real estate isn’t solely about finding the bricks and mortar that you can purchase for a rock-bottom price—there’s an awful lot more to it than that. Sure, we can look at the states, regions, cities, and neighborhoods that command the lowest sale prices, but this also needs to be looked at in combination with the reason you want to purchase. 

For instance, if you’re looking for a property to live in yourself and you’re in the enviable position of working remotely and aren’t too bothered about the location, then your needs are very different from the property investor who’s looking to make a quick buck from a fixer upper. With this in mind, let’s take a detailed look at the locations that typically command lower prices, but still offer desirability to various categories of property buyers.

Location, Location, Location…

• By state and city: the 7 cheapest real estate locations in the U.S.
• What makes a good place to buy investment property?
• Where’s the cheapest real estate in the U.S. to buy investment property?

By state and city: the 7 cheapest real estate locations in the U.S.

If we look purely at the average cost of property statewide, the current list (2023) of the cheapest real estate property in U.S. cities looks like this…

• Indianapolis, IN: At number 7 in our list, the average cost of a property here comes in at $225,000.
• Colombia, SC: The average price here comes in at $210,000.
• Des Moines, IA: We’re getting into the bargain property price bracket here, with the median cost of a house being $190,000.
• Memphis, TN: The average cost of a home in Elvis’s hometown will set you back $150,000.
• Birmingham, AL: Enjoy the sunshine of Alabama for an average house price of $110,000.
• Cleveland, OH: Even cheaper in Ohio, the mean price of a property here is a mere $100.000.
• Detroit, MI: And the cheapest place to buy property in the US is Detroit, with the median house price being $80,000.

What makes a good place to buy investment property?

Of course, what makes an investment property worth the money isn’t simply the price you can get it for. Sure, Detroit’s average house cost looks tempting. But when you factor in the high crime rate and a well-below-average job market, then if you’re planning to flip or rent your investment property, this might not make for the happiest of landscapes.

In addition to the real estate cost, a great place to purchase an investment property should have some or as many of the following attributes as possible:

• A vibrant community with flourishing businesses.
• Plenty of employment opportunities.
• A varied demographic spanning all ages.
• A thriving infrastructure.

In addition, you might want to consider some of the following:

• A place that’s popular with tourists (should you be considering the holiday rental market).
• Up and coming locations. While this might be tricky to predict, looking at towns with a stable and growing economy—even if they’re not considered in the top 10 list of investment property locations—could be a good bet. With the increase in remote working (something that shows little evidence of slowing any time soon), many folks are choosing to move away from big city life to the slower pace of smaller towns and the ‘burbs.
• Has various HQs of big business within commuting distance (and the resulting jobs this brings).

Where’s the cheapest real estate in the U.S. to buy investment property?

With all that in mind, the current top 10 list by state for investment property according to average property value looks like this:

10: Kansas

9: Alabama

8: Ohio

7: Iowa

6: Kentucky

5: Oklahoma

4: Louisiana

3: Arkansas

2: Mississippi

1: West Virginia

Need Finance for Your Next Real Estate Purchase? You Need BRRRR Loans

No matter where you purchase your property, if you’re looking to begin or increase your property portfolio, then you’ll likely need to partner with a great lender. BRRRR Loans is a premier financier for your next fix and flip or rehab property, and you’ll find our rates are some of the most competitive on the market. This, combined with our short close periods, simplistic application process, and second-to-none customer service are just some of the reasons people across the nation make us the first port of call when making a real estate investment.

As well as helping new and existing property landlords, we’re also the go-to provider for bridge loans and commercial loans. 

Ready to find out more? Head to https://www.brrrr.com or give our friendly team a call today.