Median Home Price By State

In 2025, the U.S. housing market remains historically expensive, though it is showing signs of stabilization. According to the Federal Reserve Bank of St. Louis (FRED), the median home price reached approximately $410,800 in the second quarter of 2025, having increased nearly 55% between the first quarter of 2020 and the first quarter of 2025.

Cost pressures are driven not only by tight supply but also by the rising price-to-income ratio—households are currently paying approximately 5x their annual income for a home, compared to about 3,5x in the mid-1980s. With 30-year mortgage rates remaining high and labor markets erratic, national price growth has slowed to low single digits.

However, at the state level, the picture is far from uniform: states like California have median prices well above $800,000, while others remain below $250,000. This reflects the influence of local regulations, supply bottlenecks and migration patterns.

What Shapes Home Prices

• Mortgage rates are now elevated—hovering around 6 %–7%—which limits demand even as sellers hold on to high valuations.
• Supply remains tight. Despite modest improvement, inventory is still well below pre-pandemic levels, helping prices stay firm.
  Affordability has taken a hit. According to Realtor.com, the typical U.S. household would now need to spend about 44.6% of income to afford a median-priced home, far above the 30% guideline.
• Regional divergence remains strong. While the national median sits near $410K, some states feature medians over $800,000, and others remain under $250,000, driven by local factors such as regulation, migration, labor markets and housing stock.

• California remains the most expensive state, with a median home price of $833K, followed by Hawaii ($743K) and Washington, D.C. ($643K).
• Iowa is the least expensive, at $228K, while Ohio ($241K) and Oklahoma ($244K) round out the bottom three.
• The national median price is still roughly one-third higher than pre-COVID levels, despite elevated interest rates.
• Insurance premiums have become a growing factor in total housing costs in Florida, California, and coastal regions.
• Inventory improved for the 22nd consecutive month, but remains below 2018–2019 levels, keeping pressure on prices.
• Analysts expect prices to stay flat or rise slightly in 2026 if rates continue to stabilize and construction activity expands.

California has the highest median home price at $833,000. Hawaii ranks 2nd at $743,000, followed by the District of Columbia (3rd, $643,000). Washington comes 4th ($630,000), and Massachusetts 5th ($615,000). Colorado ranks 6th ($582,000), New York 7th ($576,000), Utah 8th ($548,000), Montana 9th ($523,000), and New Jersey 10th ($521,000).

Top 10 Most Expensive Housing Markets (2025)

West Virginia has the lowest median home price at $249,000. Louisiana ranks 2nd at $249,000, followed by Missouri (3rd, $258,000). Kentucky comes 4th ($263,000), and Nebraska 5th ($289,000). Ohio ranks 6th ($241,000), Oklahoma 7th ($244,000), Arkansas 8th ($253,000), Mississippi 9th ($253,000), and Indiana 10th ($255,000).

10 Least Expensive Housing Markets (2025)