STUDY: Missouri and Arkansas in top ten for most affordable housing market

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SPRINGFIELD, Mo. (KY3) - A new study ranked Missouri and Arkansas among the cheapest states for hopeful home buyers.

SmartAsset looked at property tax rates, median home prices, home values, median listing prices per square foot and average closing costs.

Ingrid Taylor is looking to buy a home in the Ozarks.

"Mostly we're just in the looking phase, I'm kind of persnickety," Taylor said.

She said she's tired of renting.

"I don't gain any value from it whatsoever. When you own your own home, over time, you're going to increase in value, so it has higher resale value and things like that, so it's kind of security," she said.

Taylor moved to the Ozarks from Connecticut.

"I lived in an east coast town," said Taylor. "Most of the people that grew up there are having difficulty now paying paying taxes. It's very expensive. I'm sure either coast is the same way."

According to the study, Connecticut ranks in the top ten most expensive states to buy a home in, along with Hawaii, New York and California.

Missouri and Arkansas are among the least expensive states. Arkansas ranked number two, with median listing price of $179,900. Missouri came in at number eight, and $193,000.

"The coasts are way up here, other places are way down here. We're somewhere in the middle, just like we're in the middle of the country," said Anthony Carroll, with EXP Realty.

In Missouri and Arkansas, owning might be cheaper than renting.
Carroll said, the debt-to-income ratio is cheaper if you own your house.

"If you own your own home and you're paying a mortgage, you're looking at 25-30% of your monthly income going to that payment, whereas if you're renting it's usually 30-35%," he said.

Caroll said there are financing options that would keep buyers from having to put thousands down on a new home.

"There are qualifications, but if you hit those, you know, most people would probably be surprised that they'd be able to do that," he said.

That's good news for buyers like Taylor.

"I'm hoping we find the right place though," she said.

Carroll recommends, if you're in the market for a home, the first step is to talk with a lender or realtor to see what options you have.

To see the full study click HERE.