The 10 Most Affordable States in the U.S. in 2026

Key takeaways Iowa, Indiana, and Oklahoma are the most affordable states in the U.S., where monthly housing payments take about 26% of local incomes. The cheapest states are generally clustered in the Midwest and South, thanks to plenty of space and historically slower population growth. Nearly every housing market in the country is slowly becoming more affordable, but housing is still largely out of reach for median earners. The U.S. is in the midst of a housing affordability crisis that has priced many would-be homebuyers out of the market and kept many homeowners from selling, affecting everything from spending habits to the concept of the American Dream. Housing costs have consistently reached new highs since the pandemic due to elevated mortgage rates and record prices. As a result, there has been very little activity from buyers and sellers, with those still in the market often searching for homes in the few remaining affordable places to live. During the pandemic, many of these buyers chose the Sun Belt—primarily cities in Florida, Arizona, and Texas—for its lower costs and nicer weather. However, as demand pushed home prices higher in many of those markets, migration patter...