Save Your Money: The Worst States for Buying Real Estate in 2023/2024 Revealed

In the United States, buying real estate is a very important activity and a common goal for many people. However, not all states are equal when it comes to buying a house. Some states offer affordable prices, a good quality of life, and strong economic growth opportunities, while others can be quite expensive and unattractive.
In this video, I will list the worst states to buy real estate in 2023/2024, based on the publicly available numbers and the average costs of homes.
California

California is a state known for its favorable climate, diverse population, and flourishing entertainment industry. However, living in this state can be quite expensive, especially when it comes to buying a home. The median home price in California is over $700,000, which is significantly higher than the national average, making homeownership unattainable for many residents.
To get a better understanding of the cost of living in California, it's important to look at the average salary earned by workers in the state. The median household income in California is around $80,000, which is higher than the national average. Nevertheless, it may not be enough to comfortably afford a home in many areas of the state, particularly in the more expensive cities such as San Francisco and Los Angeles.
Besides the high cost of homes, property taxes in California are also among the highest in the country, with an average of 1.07%. High home prices and property taxes together can make it extremely challenging for many people to fulfill their dream of owning a home in California. For example, property taxes on a $700,000 home in California would amount to $7,490 per year, which can be a significant burden for many households.
New York

New York is a state located in the northeastern region of the United States and is widely known for its bustling cities, iconic landmarks, and thriving arts scene. However, it's also one of the most expensive states to live in, particularly when it comes to buying a home. The median home price in New York is around $580,000, which is higher than the national average. This means that many people struggle to afford a home in New York, especially when combined with the high cost of living in the state.
To put the cost of living in New York into perspective, it's important to consider the average salary earned by workers in the state. The median household income in New York is around $72,000, which is slightly lower than the national average.
In addition to the high cost of homes, property taxes in New York are also among the highest in the country, with an average of 1.68%. This means that homeowners in New York must pay a significant amount of money in property taxes each year, which adds to the overall cost of owning a home in the state.
Hawaii

The cost of owning a home in Hawaii is incredibly high, with the median home price exceeding $700,000, far above the national average. As a result, a significant number of people struggle to purchase a house in Hawaii, particularly when combined with the state's exorbitant cost of living.
To gain a comprehensive understanding of the cost of living in Hawaii, it's essential to take into account the average salary earned by employees in the state. Although the median household income in Hawaii stands at around $80,000, higher than the national average, the elevated cost of living in various regions of the state can put a strain on individuals who earn even six-figure salaries.
Apart from the high cost of homes, property taxes in Hawaii are also among the highest in the country, with an average of 0.28%. To add to the financial burden, other living expenses like groceries, healthcare, and transportation in Hawaii are considerably higher than in most other states, which can make it even more challenging for individuals to maintain a decent standard of living.

Massachusetts

Massachusetts is a state located in the northeastern region of the United States and is widely known for its rich history, world-class universities, and thriving economy. However, it's also one of the most expensive states to live in, particularly when it comes to buying a home. The median home price in Massachusetts is around $500,000, which is higher than the national average. This means that many people struggle to afford a home in Massachusetts, especially when combined with the high cost of living in the state.
To put the cost of living in Massachusetts into perspective, it's important to consider the average salary earned by workers in the state. The median household income in Massachusetts is around $85,000, which is higher than the national average.
In addition to the high cost of homes, property taxes in Massachusetts are also among the highest in the country, with an average of 1.21%.
District of Columbia

The District of Columbia, or D.C. as it is commonly called, is the capital of the United States and boasts a rich history, vibrant culture, and numerous landmarks. However, buying a home in the area can be quite challenging due to the high median home price of around $650,000, which is significantly above the national average. This means that many people struggle to afford a home in the District of Columbia, especially when combined with the high cost of living in the region.
To gain a more accurate understanding of the cost of living in the District of Columbia, it's essential to consider the average salary earned by workers in the area. The median household income in the District of Columbia is approximately $85,000, which is higher than the national average.
On top of the high home prices, property taxes in the District of Columbia are also among the highest in the country, with an average rate of 0.56%. This means that homeowners in the area must pay a substantial amount of money in property taxes each year, further adding to the overall cost of owning a home in the region.
Despite these obstacles, the District of Columbia remains a popular place to live and work due to its rich cultural heritage, thriving political scene, and numerous job opportunities. However, for many people, the high cost of living, particularly the cost of buying a home, can be a significant challenge to overcome.
Connecticut

Connecticut is a small state in the Northeastern region of the United States that is known for its charming small towns, coastal cities, and beautiful autumn foliage. The median home price in Connecticut is around $370,000, which is higher than the national average.
To put the cost of living in Connecticut into perspective, it's important to consider the average salary earned by workers in the state. The median household income in Connecticut is around $76,000, which is higher than the national average.
In addition to the high cost of homes, property taxes in Connecticut are also among the highest in the country, with an average of 1.63%. This means that homeowners in Connecticut may face significant property tax bills on top of their mortgage payments. Additionally, the state has one of the highest costs of energy in the country, which can further increase the overall cost of living for residents.

New Jersey

New Jersey is a state located on the east coast of the United States and is widely known for its beautiful beaches, bustling cities, and thriving economy. However, it's also one of the most expensive states to live in, particularly when it comes to buying a home. The median home price in New Jersey is around $350,000, which is higher than the national average.
To put the cost of living in New Jersey into perspective, it's important to consider the average salary earned by workers in the state. The median household income in New Jersey is around $85,000, which is higher than the national average.

In addition to the high cost of homes, property taxes in New Jersey are also among the highest in the country, with an average of 2.47%. This means that homeowners in New Jersey must pay a significant amount of money in property taxes each year, which adds to the overall cost of owning a home in the state.

Rhode Island

Rhode Island has a median home price of approximately $360,000, which surpasses the national average. As a result, numerous individuals in Rhode Island face difficulties in purchasing a house, particularly when combined with the state's high cost of living.
To comprehend the cost of living in Rhode Island better, it's crucial to take into account the average salary earned by employees in the state. While the median household income in Rhode Island is roughly $67,000, slightly lower than the national average, individuals who earn a six-figure salary can still struggle to maintain a decent standard of living, especially in costly areas like Newport and Providence.
Besides the exorbitant cost of housing, property taxes in Rhode Island are also among the highest in the country, with an average of 1.53%.
Oregon

The midpoint of the housing prices in Oregon is approximately $420,000, which is considerably greater than the national mean. Consequently, numerous individuals encounter challenges in purchasing a house in Oregon, particularly when coupled with the state's elevated cost of living.
To obtain a better comprehension of the cost of living in Oregon, it's crucial to take into account the mean salary earned by employees in the state. The median household income in Oregon stands at roughly $76,000, a little higher than the national average.
In addition to the exorbitant cost of housing, property taxes in Oregon are also among the highest in the nation, with an average of 1.07%.
Colorado
Situated in the western part of the United States, Colorado is renowned for its magnificent mountainous landscapes, plethora of outdoor recreational activities, and robust economic conditions. With a median home value of approximately $450,000, which is considerably more than the national average, a significant proportion of the population in Colorado face difficulties in affording a residence, particularly when coupled with the state's high cost of living.
To gain a better understanding of the cost of living in Colorado, it is essential to take into account the average salaries earned by workers in the state. Although the median household income in Colorado stands at approximately $80,000, surpassing the national average, it can still be challenging to maintain a decent standard of living in costly regions such as Boulder and Denver.
Apart from exorbitant housing prices, Colorado's property taxes are also among the highest in the country, averaging at 0.54%.
Conclusion
In conclusion, buying a home in some states in the United States can be very expensive and difficult for many people. These states have a high cost of living, high property taxes, and home prices above the national average. If you are thinking of buying a home in one of these states, it is important to do your due diligence and consider all factors before making a decision.