what is the average house cost in usa

What Is the Average House Cost in USA?

Jan 3, 2024

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The United States has the most robust economy in the world and a real estate market worth more than 2,5 trillion dollars. It’s the biggest one in the world, and it has billions of dollars in foreign investments each year (due to its size and diversity). The US real estate market attracts various types of investors and has properties for almost any price range — from very cheap to extremely expensive. 

In this article, we’ll talk about the average house cost in the USA and will tell you how much the average house prices are in each of the 50 states.

Let’s start.

How Much Does a House Cost in USA?

The average house price in the US for the second quarter of 2023 is around $431,000. Because the US is a rather large country, it’s possible to find properties that cost many millions of dollars, but it is also possible to find houses that cost less than 100k.

For the most part, the average US home price has stayed on par with inflation. This means that property owners didn’t lose money due to inflation. They have either made money (as the property price increased) or have stayed on the same level (when compared to inflation percentage).

Year Average cost of house in America
1980 $63,700
1990 $123,900
2000 $165,300
2010 $222,900
2020 $329,000
2023 $431,000

Why Buy Property in the US?

Real estate is all about people, and the US has been experiencing a steady growth in population of around 0,5% per year. This growth is due in part to the country having more births than deaths, but also due to many people choosing to move to the US (around 1 million per year since 2007).

Buying a house in the US is a good way to protect your money from inflation, and can also serve as a means to generate passive income (via rent). Because the country is so large, it’s possible to find affordable properties, no matter your financial situation. And, because of the developed US financial system, foreigners can more easily get mortgage loans than in many other countries in the world. 

Additionally, many countries are centralized, meaning that the economic development focuses on a small number of major cities. 

In the US, it’s quite the opposite. There are 100s of developed cities, with unique real estate opportunities and various other developed markets. It’s the best example of moderate growth, where instead of one major city growing rapidly (economically, in population, etc.) and every other stagnating, the US has many places that are simultaneously experiencing growth. This means that, no matter how deep your pockets are, you’ll be able to find properties in the US that can fit your budget.

We can help you find the best prices in the US.

House Cost in USA: Example and Comparison 

The real estate market in the US is quite large. This makes it much easier to find affordable properties in the US that can generate good rental income, than in many other Western countries.

To give you a quick example, the real estate market in Milwaukee allows you to buy a house for $180,000 that you can rent for almost $2,000 per month. After paying for all the costs (regular maintenance, HOA fees, taxes, etc.) and, with good property management, you can get your initial investment in around ten years.

It would be really difficult to find those or similar numbers (with that good cost-to-value ratio) anywhere else in the world. Let’s say you’re an investor who’s looking to purchase a house in London. For an average home, you’ll have to spend more than $900,000, and you can rent it out for around $2,700. Granted, the rent is higher than in Milwaukee, but not by much, and it has a lower cost-to-value ratio. To get back your initial investment, in London, you’ll have to collect the rent for more than 330 months or almost 28 years (this assumes that everything goes smoothly).   

a house made of dollar bills

Average House Cost in USA per State

The US is a big country that consists of 50 states. Each of those states is like a country on its own, so much so that all of them have unique house and rent costs. In the following part of the article, we’ll discuss the average house price in the USA for each individual state.

Average House Price in USA: Alabama

Alabama is located in the southeast part of the US. It has a population of around 5 million, making it the 24th most populous state in the US federation.

Average home price — $221,428

Average rent per month — $1,400

Average US Home Price: Alaska

Located in the northwest part of the North American continent, Alaska has a population of around 730,000 people. And, even though the average yearly temperatures in Alaska are between 40°F to 60°F (4° – 15°C), the number of people living there keeps growing, albeit slightly. 

Average home price — $349,231

Average rent per month — $1,459

Price of House in USA: Arizona

Arizona is located in the Southwestern part of the US. It has a population of around 7,2 million and is the 6th-largest US state.

Average home price — $422,243

Average rent per month — $1,750

Cost of House in America: Arkansas

Arkansas is located in the southern part of the US. It’s a landlocked state with a population of around 3,2 million people and is the 29th-largest state in the country. 

Average home price — $197,411

Average rent per month — $1,350

Average House Price in USA: California

California is located in the western part of the USA. It’s the 3rd-largest state in the US with a population of over 39,4 million people. 

Average home price — $746,055

Average rent per month — $2,750

Average US Home Price: Colorado

Located in the western part of the US, Colorado is the 8th largest state in the country. It has a population of around 5,8 million people. 

Average home price — $528,285

Average rent per month — $2,100

Price of House in USA: Connecticut

Connecticut is located in the southern part of the New England region of the US. It primarily consists of coastal cities, and rural areas sprinkled with small towns. Connecticut has a population of about 3,6 million and is the 48th state in terms of its size. 

Average home price — $381,620

Average rent per month — $1,850

House Cost in USA: Delaware

Delaware is the 2nd smallest state, located in the Mid-Atlantic region of the US. It has a population of just over a million people.

Average home price — $375,165

Average rent per month — $1,950

House Cost in USA: District of Columbia

Although not officially a US state, the District of Columbia is an important region of the country as it is the location of the capital city — Washington D.C. It has a population of around 710,000 people. 

Average home price — $609,150

Average rent per month —$2,422

House Cost in USA: Florida

Florida is situated in the southeastern part of the US. Famous for having just around 825 miles (or 1327 km) of beaches, Florida is really popular for Canadians looking to buy property (e.g. vacation or residential), and many other foreign nationals. The state has a population of around 21,8 million people and is the 22nd-largest state in the country. 

Average home price — $391,213

Average rent per month — $1,218

Price of House in USA: Georgia

Georgia is a state located in the southeastern part of the US. It’s the 24th state in terms of its size and has a population of around 10,8 million people. 

Average home price —  $319,158

Average rent per month — $1,902

Price of House in USA: Hawaii

Hawaii is an island US state located in the Pacific, around 2,000 miles (3,200 km) from the mainland. It’s the 43rd state in terms of its size and has a population of about 1,4 million people. 

Average home price — $840,748

Average rent per month — $2,800

House Cost in USA: Idaho

Located in the northwestern part of the US, Idaho is the 14th largest state in the country. It has a population of around 1,9 million people.

Average home price — $434,224

Average rent per month — $1,700

Price of House in USA: Illinois

Illinois (also known as “the Prairie State”) is located in the midwestern part of the US. It’s the 25th state in terms of its size and has a population of around 12,6 million people.

Average home price — $249,224

Average rent per month — $1,750

Average House Price in USA: Indiana

Indiana is situated in the midwestern region of the US. It’s the 38th-largest state by land area and has a population of about 6,8 million people.

Average home price — $228,879

Average rent per month — $1,285

House Cost in USA: Iowa

Iowa is located in the midwestern part of the US, between the two major rivers – Mississippi and Missouri. It’s the 26th state by land area and has a population of around 3,2 million people.

Average home price — $207,215

Average rent per month — $1,100

Price of House in USA: Kansas

Kansas is a US state situated in the midwestern part of the country. It has a population of around 2,9 million and is the 15th-largest state in the USA.

Average home price — $214,772

Average rent per month — $1,200

Price of House in USA: Kentucky

Kentucky is located in the southeast part of the US. The state has a population of around 4,5 million people and is the 37th state in terms of land mass. 

Average home price — $196,580

Average rent per month — $1,295

House Cost in USA: Louisiana

Louisiana is a state located in the southwest of the US, right on the Gulf of Mexico. It is the 31st state in terms of its size and has a population of around 4,6 million people.

Average home price — $195,356

Average rent per month — $1,450

Price of House in USA: Maine

Maine is a state in the northeast region of the US and is known for its mountainous coastline, nature, and vibrant maritime history. Maine is the 39th largest state in the country with a population of about 1,4 million people. 

Average home price — $385,019

Average rent per month — $1,995

House Cost in USA: Maryland

Maryland is a state in the Mid-Atlantic region famous for its coastline and canals. The state has a population of around 6,1 million and is the 42nd state in terms of size.

Average home price — $408,200

Average rent per month — $1,800

Average House Price in USA: Massachusetts

Massachusetts is the 44th state by land size and has a population of around 7 million. It’s right next to the Atlantic Ocean, making it ideal for investing in vacation rentals

Average home price — $588,621

Average rent per month — $3,100

Price of House in USA: Michigan

The 11th state in terms of its size, Michigan is home to over 10 million people. It’s located in the Great Lakes region, in the upper part of the Midwest.  

Average home price — $232,380

Average rent per month — $1,350

House Cost in USA: Minnesota

Minnesota has a population of roughly 5,7 million people and is the 12th state in terms of its size. It’s right on the border with Canada and is famous for having more than 10,000 lakes. 

Average home price — $324,215

Average rent per month — $1,495

Price of House in USA: Mississippi

Mississippi has a population of 2,9 million and is ranked as the 32nd state in terms of size. It’s located in the southern part of the US and is famous for being the birthplace of blues.

Average home price — $171,440

Average rent per month — $1,400

Average House Price in USA: Missouri

Missouri is the 21st largest state in the US, with a population of roughly 6,2 million. It’s located in the midwestern part of the US and shares a border with eight other states.

Average home price — $235,844

Average rent per month — $1,250

House Cost in USA: Montana

The home to the world-famous Glacier National Park, Montana is the 4th largest state in the country. It has a population of around 1,1 million people.

Average home price — $446,483

Average rent per month — $ 1,625

Price of House in USA: Nebraska

The 16th state by size, Nebraska has a population of almost 2 million people. It’s located in the midwestern part of the US.

Average home price — $249,135

Average rent per month — $1,266

Average House Price in USA: Nevada

Located in the western part of the US, Nevada is the 7th state by land size and is home to over 3 million people.

Average home price — $418,583

Average rent per month — $1,950

House Cost in USA: New Hampshire

The fifth smallest state in the US, New Hampshire is home to around 1,4 million people. 

Average home price — $447,215

Average rent per month — $2,055

Price of House in USA: New Jersey

New Jersey is the 47th state in terms of size but is the most densely populated. It has a population of roughly 9,2 million. 

Average home price — $495,469

Average rent per month — $2,500

Average House Price in USA: New Mexico

New Mexico is the 5th largest state by land size and has a population of 2,1 million people.

Average home price — $291,722

Average rent per month — $1,610

House Cost in USA: New York  

The state of New York (not to be confused with New York City) is located in the northeastern part of the US. It’s the 27th state by size and has a population of almost 20 million people (19,8 to be precise).

Average home price  — $450,466

Average rent per month — $3,000

Price of House in USA: North Carolina

Located in the southeastern region of the US, the state of North Carolina is home to 10,5 million people. It’s the 28th largest state in terms of its size. 

Average home price — $320,716

Average rent per month — $1,795

House Cost in USA: North Dakota

North Dakota is located in the midwestern part of the US. It’s the 19th largest state and has a population of around 775,000 people.

Average home price — $250,248

Average rent per month — $965

Average House Price in USA: Ohio

Located in the midwestern region of the US, Ohio is the 34th largest state by size and is home to almost 12 million people. 

Average home price — $216,115

Average rent per month — $1,250

Price of House in USA: Oklahoma

Located in the south-central part of the country, Oklahoma is the 20th state by land size and has a population of almost 4 million people. 

Average home price — $196,774

Average rent per month — $1,350

Average House Price in USA: Oregon

Oregon is located in the Pacific Northwest region and is the 9th largest state in the US. It has a population of around 4,2 million people. 

Average home price — $483,939

Average rent per month — $1,750

House Cost in USA: Pennsylvania

Pennsylvania is the 5th most populous state in the US with a population of almost 13 million people. It’s also the 33rd state in terms of land size.

Average home price — $254,802

Average rent per month — $1,500

Price of House in USA: Rhode Island

Rhode Island is located in the northeastern part of the US. It is the smallest state in terms of size and has a population of just above 1 million people (roughly 1,1 million).

Average home price — $435,415

Average rent per month — $2,195

House Cost in USA: South Carolina

South Carolina, famous for its shoreline and beautiful beaches, is the 40th state in terms of land size and has a population of around 5,2 million people.

Average home price — $287,063 

Average rent per month — $1,799

Price of House in USA: South Dakota

Located in the northern part of the US, South Dakota is a sparsely populated state with around 895,000 residents. It’s the 17th largest state in the country.

Average home price — $291,081

Average rent per month — $1,175

Average US Home Price: Tennessee

As the 15th most populous US state, Tennessee has a population of almost 7 million people. It’s the 36th state in terms of its size and is located in the southern part of the country.

Average home price — $309,913

Average rent per month — $1,700

Price of House in USA: Texas

Texas is located in the  South Central region of the US and is the 2nd largest state in the union. It has a population of almost 30 million.

Average home price — $296,127

Average rent per month — $1,850

House Cost in USA: Utah

Located in the western part of the US, Utah is the 13th largest state by land size. It has a population of around 3,3 million people.

Average home price — $502,647

Average rent per month — $1,750

Price of House in USA: Vermont

Located in the northeastern part of the US, Vermont is the 6th smallest state in the country and has a population of about 650,000.

Average home price — $385,968

Average rent per month — $2,000

House Cost in USA: Virginia

Vermont is the 35th state in terms of land size and is located in the southeastern region of the US. The state has a population of around 8,6 million people.

Average home price — $372,801

Average rent per month — $1,900

House Cost in USA: Washington

Washington state (not to be confused with Washington D.C.) is located in the Pacific Northwest region of the US. It’s the 18th largest state by size and has a population of roughly 7,7 million.

Average home price — $566,052

Average rent per month — $1,976

Price of House in USA: West Virginia

Famous for its Appalachian Mountains, the state of West Virginia is located in the eastern part of the US. It’s the 10th smallest state in the country and has a population of around 1,8 million.

Average home price — $157,272

Average rent per month — $995

House Cost in USA: Wisconsin

Wisconsin is a US state, located in the upper midwestern part of the country. It’s the 23rd state in terms of land size and has a population of almost 6 million people.

Average home price — $286,787

Average rent per month — $1,245

Average US Home Price: Wyoming

Wyoming is home to 7 national parks (including the world-famous Yellowstone Park). It’s the 10th largest state in the US and has a population of around 579,000 people.

Average home price — $335,160

Average rent per month — $1,312

a picture showcasing how much is a house in america

FAQ

What are the most popular places in the US for foreign buyers?

Because the US is so large and diverse, and has states with different real estate markets (both in terms of size and pricing), it’s extremely popular with foreign investors. For example, just in 2023 alone, foreign buyers spent more than $53 billion on US property.

The most popular places in the US for foreign buyers include the following state states:

  • Florida 
  • California 
  • Texas 
  • North Carolina  
  • Arizona
  • New York

What is the cost of living in the US?

The average cost of living in the US is between $2500 and $3500 per month. And, with the average salary being around $60,000, it’s safe to say that in the US there are a lot of people who live quite comfortably. 

Want to Buy a House in the US?

NRI is a one-stop-shop agency, specializing in helping foreigners buy houses in the US. We help foreign citizens through the entire process of buying a US property and can provide assistance every step of the way. We can connect you with real estate agents, help you with financing and getting a mortgage loan, and ensure all of the taxes and documentation are done by US law. 

Whether you’re looking to expand your portfolio, purchase rental or vacation property, or even a primary residence, NRI is a perfect place to start your US real estate journey!

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