Understanding the Median Home Prices Across the US
- Author: Aubrey Sipes
- Posted: 2025-02-03
Unlike the average price, the median isn't thrown off by very expensive or very cheap homes.
Median vs. Average: What's the Difference?
The median is the middle value in a list of numbers, while the average is the sum of all numbers divided by the count. If one house is way more expensive than the others, it can make the average price seem higher than most homes actually are.
Here’s a simple example. If six homes were sold for $150,000, $300,000, $350,000, $400,000, $450,000, and $1,200,000, the average would be $475,000, but the median would be $375,000.
The median is often a more accurate number to look at because the average is increased by the $1.2 million home.
How Much Do Homes Cost in the US?
In December 2024, the typical home in the United States cost around $427,179. Prices have been changing; they’ve gone up by over 44% in the past five years but dropped a little from November to December 2024.
Prices Can Vary a Lot Depending on Where You Are
The cost of a home can change a ton from one place to another. Big cities are generally pricier than small towns.
And homes near water or mountains often cost more than those in flat, landlocked areas.
Home Prices in Each State
Every state has different home prices. As of December 2024, the states with the highest median home prices were California at $802,300, Hawaii at $759,500, and Washington, D.C. at $630,000.
On the other end, Iowa, Oklahoma, and West Virginia had the most affordable homes, with median prices of $230,000, $241,000, and $245,700, respectively.
Will Home Prices Become More Affordable?
Prices slowed down a bit in 2023 and 2024, especially in areas where prices zoomed up too fast during the COVID-19 pandemic. Experts have different ideas about what will happen in 2025.
Some think mortgage rates might drop, which can make homes more affordable, but that could also lead to more people wanting to buy homes, which might push prices up again.
Buying a Home in 2025
If you're thinking about buying a home in 2025, you might see better mortgage rates and more homes on the market than in 2024. The best time to buy a home is when you can afford it without stretching your budget too thin.
Homeownership can help you build wealth over time as your home's value goes up. And if rates go down, you can refinance to a lower rate and save money.
Final Thoughts
Home prices vary a lot in the US. If you’re thinking about buying a home, plan your budget and look for any state programs that can help.
When you’re ready, talk to a local mortgage expert who can help you understand your options. For some who are eligible, they can look into getting help from government programs like the Housing Choice Voucher or down payment assistance programs.
Remember to do your homework and prepare. When you’re financially ready and the right chance comes up, you'll be set to buy your home.
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