Real estate in the United States is becoming increasingly more expensive as the market inflates. It’s difficult to find affordable housing anywhere. Approximately 80% of renters in the U.S. say that they would like to own their own home, yet only about half of the people in this percentage can actually afford to purchase a home in the state where they currently live. Of course, it’s cheaper to buy property in some states than others, so some people are choosing to look to alternative locations when settling down. If you’re on the hunt for a home, here are some states you should avoid unless you’re ready to take out a jumbo loan.
Hawaii
It should come as no surprise that the Aloha State takes first place for the most expensive state to live in in the U.S. This tropical paradise has been a tourist attraction for over a century, and plenty of Americans have been desperate to get their hands on their own piece of paradise. However, the Hawaiian islands have strict laws in place surrounding construction and development in order to protect the natural landscape, so there are not enough available homes to meet the demand.
This is a big reason why Hawaii’s housing cost is more than 200% higher than the national average. In addition to this, Hawaii’s primary source of revenue stems from tourism. The state does not have massive factories for production, so everything has to be shipped for the island–including any materials for building new homes like lumber or tile.
Not only does this shipping cost make building materials increasingly more expensive, but it also raises the price of everything on the island. Essentials like food and water, clothing, and gas for your car or to heat your home all become exponentially more expensive because they are more difficult to obtain. As desirable as it might be to live the island life, you might want just to find a property on the mainland instead and settle for a week-long vacation to one of the many gorgeous islands.
California
You likely won’t be shocked to hear that the Golden State is one of the country’s most expensive places to settle down. Like Hawaii, California’s expansive coast and its many pristine beaches make it a highly desirable spot for tourists and people looking for a great place to live. Of course, with its high population, housing in this state is often fairly difficult to come by and is, therefore, wildly expensive.
The fact that there is such a high concentration in some areas of celebrities and television executives with enough money to build mansions means that the prices of other properties are jacked up as well. If you’re looking to pack up your life and move to California, it might be best to avoid the more expensive cities like Los Altos, Santa Barbara, and Malibu, where home values average in the multi-million dollar range.
Oregon
You might be surprised to hear that Beaver State takes third place for the most expensive state to buy a house in. You might have expected a more populated state like New York or Massachusetts. The thing is, the cost of real estate in Oregon really shot up after the pandemic since so many people were trading city life for more rural living. Oregon has plenty of natural beauty, including its many lakes, lush forests, Crater Lake National Park, and its gorgeous 363-mile-long coastline. In addition to its natural beauty, the state is also well-known for the bustling city of Portland, which is famous for its diverse art and for its unique ‘crunchy’ culture.
Washington
Like Oregon, Washington was another state greatly affected by the post-pandemic migration. Washington is famous for its lush forests and mountains, which make for excellent hiking. The state is also home to three national parks and has 157 miles of coast, which makes it the perfect state for anyone who loves outdoor recreation.
Its most populated city is Seattle, which is well-known for its exceptional coffee, being the birthplace of Starbucks, and being the city where alternative music genres like grunge were founded. If you wanted to live somewhere like Washington because of its lush forests and excellent hiking, then you might consider looking for properties in Idaho or Montana instead. Though neither of these states has a coastline, they are both breathtakingly beautiful and much more affordable than the Evergreen State.
