It’s no secret that a dollar doesn’t travel as far as it used to, from grocery prices to housing costs. The good news, according to money expert Clark Howard, is that turbulent economic times typically bode well for home shoppers.
“We are at a time when the power in the marketplace in city after city and state after state has flipped, where we went for years with it being a strong sellers market,” Clark says in a recent podcast. “In most places in the United States, with few exceptions, we are now in a buyer’s market.”
With that being said, you might be surprised with how much (or how little) house you get with $300,000 today.
A recent report from finance site GoBankingRates.com shows how much square footage you can buy in the United States for a $300,000 home.
How Much House Can You Get for $300,000?
Here are some key findings from the report:
- In seven states, $300,000 gets you less than 1,000 square feet: Arizona, California, Hawaii, Maine, Massachusetts, New Jersey and New York.
- In West Virginia, you can get the most space – 2,185 square feet – for $300,000, which is tops on the list.
- On the other end of the spectrum, Hawaii only gives you 443 square feet for $300,000, which is dead last on the list.
Now, let’s take a look at how much space you get for a $300,000 home across America. We’ve also included the price per square foot and housing cost index for each state.
For easier reading, we’ve broken the data up into two tables comprised of 25 states each.
| State | Square Feet for $300,000 | Price Per Square Foot | Housing Cost-of-Living Index |
|---|---|---|---|
| West Virginia | 2,185 | $137 | 61.3 |
| Kansas | 1,894 | $158 | 70.7 |
| Alabama | 1,876 | $160 | 71.4 |
| Mississippi | 1,855 | $162 | 72.2 |
| Oklahoma | 1,793 | $167 | 74.7 |
| Arkansas | 1,781 | $168 | 75.2 |
| Iowa | 1,776 | $169 | 75.4 |
| Indiana | 1,733 | $173 | 77.3 |
| Kentucky | 1,721 | $174 | 77.8 |
| Michigan | 1,706 | $176 | 78.5 |
| Missouri | 1,704 | $176 | 78.6 |
| Georgia | 1,691 | $177 | 79.2 |
| Nebraska | 1,685 | $178 | 79.5 |
| North Dakota | 1,678 | $179 | 79.8 |
| Minnesota | 1,668 | $180 | 80.3 |
| Texas | 1,647 | $182 | 81.3 |
| Maryland | 1,629 | $184 | 82.2 |
| Tennessee | 1,617 | $185 | 82.8 |
| Pennsylvania | 1,604 | $187 | 83.5 |
| Illinois | 1,591 | $189 | 84.2 |
| Louisiana | 1,587 | $189 | 84.4 |
| Montana | 1,583 | $190 | 84.6 |
| New Mexico | 1,577 | $190 | 84.9 |
| South Carolina | 1,550 | $194 | 86.4 |
| Ohio | 1,529 | $196 | 87.6 |
Let’s consider the remaining 25 states:
| State | Square Feet for $300,000 | Price Per Square Foot | Housing Cost-of-Living Index |
|---|---|---|---|
| South Dakota | 1,493 | $201 | 89.7 |
| Wyoming | 1,486 | $202 | 90.1 |
| North Carolina | 1,401 | $214 | 95.6 |
| Delaware | 1,388 | $216 | 96.5 |
| Wisconsin | 1,360 | $221 | 98.5 |
| Idaho | 1,351 | $222 | 99.1 |
| Virginia | 1,290 | $233 | 103.8 |
| Nevada | 1,254 | $239 | 106.8 |
| Colorado | 1,245 | $241 | 107.6 |
| Florida | 1,244 | $241 | 107.7 |
| Rhode Island | 1,171 | $256 | 114.4 |
| New Hampshire | 1,153 | $260 | 116.2 |
| Connecticut | 1,143 | $263 | 117.2 |
| Alaska | 1,137 | $264 | 117.8 |
| Washington | 1,057 | $284 | 126.7 |
| Utah | 1,033 | $291 | 129.7 |
| Oregon | 1,017 | $295 | 131.7 |
| Vermont | 1,006 | $298 | 133.1 |
| Maine | 986 | $304 | 135.8 |
| Arizona | 985 | $305 | 136 |
| New Jersey | 969 | $310 | 138.2 |
| New York | 787 | $381 | 170.2 |
| California | 641 | $468 | 209.1 |
| Massachusetts | 593 | $506 | 226 |
| Hawaii | 443 | $678 | 302.6 |
Read the complete report from GoBankingRates.
How To Afford a Home Today
In the market for a home? Let’s go over some smart tips from Clark on how to save on housing costs today:
Pick a Smaller Dwelling
Like so many others, Clark in recent years has downsized his dwelling — and it’s been a boon for his finances.
“We utilize a much higher percentage of the dwelling, and our overhead with the property is much, much lower,” he says. “And so it worked for us; it might work for you if you’re looking for a place.”
Calculate Your Real Expenses
When you’re finding out how much home you can afford, it’s important to add up your true expenses — not what you want to afford.
“Ignore what you’re pre-approved for. Instead, base what you can really afford on what your current rent is. Remember with that mortgage, you’re going to also have taxes and insurance,” Clark says.
“If you’re used to paying $1,500 per month in rent, and you can secure a $4,200 a month mortgage payment, are you really going to be able to come up with the $2,700 difference? How much room do you actually have in your monthly budget for more for housing?”
Read up on how to save up for a home.
Raise Your Credit Score
A good credit score is invaluable when it comes to qualifying for a mortgage. And yes, the higher your credit score, the better chances you’ll have to qualify for a lower interest rate.
Where to start? Get a full picture of your credit profile by snagging a free copy of your credit reports from AnnualCreditReport.com. Make sure you check the reports from the major credit bureaus Equifax, Experian and TransUnion.
Read our guide on how to boost your credit score.
Final Thoughts
In the current housing market, no one expects home prices to suddenly become a bargain, Clark says, but that doesn’t mean we can’t do what we can to take the edge off. At Clark.com, we want you to actively search for ways to save money — and we want to help you.
When it comes to housing, be intentional about lowering your bills, including cutting the costs of your utilities, and yes, even considering moving to cheaper areas.
Need help with that? Some places will even pay you to live there.
The post Report: How Much House $300,000 Buys You in Every State appeared first on Clark Howard.
