Despite two-bedroom houses being uncommon in recent years, they are still available. In West Virginia, two-bedroom homes go for as low as $100,000. This state has the cheapest house rates, whereas Massachusetts and Hawaii have the most expensive two-bedroom houses going for up to $800,000. Ranking the prices results from calculating the averages from property and mortgage taxes and the listing prices in each state.
How Do Two-Bedroom House Prices Range In Different States?
House prices vary from state to state depending on factors such as utility services prices, water availability, and electricity, among others. Two-bedroom houses found in the Midwestern united states were former company homes for miners and the families that owned mining companies. After closure, these homes were put up for sale at an inexpensive price of as low as $25,000.
In the southwestern united states, two-bedroom houses are available in a Spanish style commonly known as haciendas. However, despite having only two bedrooms, they sell at prices as high as a million dollars. The main reason for these high prices is their large professional kitchen styles with formal living and sitting area usually about 20′ X 30′, equivalent to 7 X 10 meters and sometimes can be even more significant.
According to reports by the National Association of Realtors, there were fewer two-bedroom houses available for sale in 2020 than in 2019. Their availability decreased by 18.2% leading to a slight increase in their price despite the impacts and two recessions resulting from covid-19.
From the National Realtors Report, there were several findings relating to prices of two-bedroom prices. They include;
1. The existing median two-bedroom house price was $2000,000 in June 2020.
2. Two-bedroom house inventory was historically low as there were 18.2% fewer houses available for sale than the previous year.
3. Hawaii is in the top list with the highest two-bedroom medium house value in the US, standing at about $600,000. At the same time, west Virginia had the lowest values at $100,000.
4. The square footage size of two-bedroom houses has constantly increased from 1,525 square feet in 1973, and by 2010, the average size was 2,169 square feet leading to a slight increase in their general price.
The table below shows the development of prices rates and sizes of two-bedroom houses in the united states for the year 1973 and 2010
|Date of sale||The median two-bedroom house value||Median two-bedroom house value adjusted for inflation in 2010||Median two-bedroom house size||Adjusted prize per square foot|
|1st January 1973||$30,200||$148,000||1,250 square feet||$95|
|1st January 2010||$222,000||$222,000||2,168 square feet||$100|
Data in the table above holds factors such as mortgage rates, local market conditions, economic recession, and other factors affecting housing prices constant.
How Did Two-Bedroom Prices Compare In 2019 And 2020?
The median two-bedroom house price ranges are shown in the table below, which compares four consecutive months of 2019 and 2020.
|Two bedroom house average price||March||April||May||June|
From the table, June’s average prices for a two-bedroom house in 2010 were higher than in the previous year by 3.5 percent, caused by low inventory resulting from the Covid 19 pandemic. However, some rural areas which were hardly stricken by the pandemic were less affected (like west Virginia and Alabama), and their prices did not change much.
Which States Have The Cheapest Two-Bedroom Houses?
Two-bedroom houses in the US have varied prices from state to state, ranging from about $100,000 buying price in west Virginia to $650,000 in Hawaii. Hawaii and Massachusetts have the highest two-bedroom prices. Other states with cheap selling prices and affordable mortgage rates include;
The state has the lowest average home values, with a two-bedroom house for as low as $100,000. West Virginians enjoy low property taxes associated with lower values making it easy to own a home. Mortgage rates are also lower than in any other state, making it even cheaper. Mortgage rates in West Virginia are as low as $570 per month, assuming you are getting a 20% down payment. Other programs and real estate offer more competitive flexible costs and interest rates, making it even better for any aspiring homeowner.
It is the county’s second-lowest state, with cheap two-bedroom houses going for about $120,000. In addition, most of their mortgage rates are as low as 3%, usually fixed on a 30-year fixed-rate loan. Such rates have made homeownership in Mississippi a dream come true for many people. Other than the low mortgage rates and cheap two-bedroom prices, they also enjoy low property taxes with average bills of $813, a year.
Two-bedroom homes have their prices at $130,000, making them fall under the most affordable states in the US. You are likely to get a two-bedroom house in Arkansas for half the price of a one-bedroom home in California. Just like in Mississippi and West Virginia, this state enjoys low mortgage rates and low property taxes, making two bedrooms affordable to many.
Reports have it that these southern states have had a continuous rise in house prices over the past year and have still maintained cheap and affordable housing rates. The main reason for these affordable rates is due to low property taxes. Alabama is listed as the state with the lowest property taxes, about $540 property tax bills per year. A two-bedroom house in Alabama goes for about$140,000, which is low compared to other states like New York and California.
Which States Have The Most Expensive Two-Bedroom House Prices?
Coming up with the ranks on states with the cheapest and most expensive two-bedroom house prices was based on the following metrics;
1. Payable tax rates in the state are based on the Census Bureau data in the US.
2. Houses listing prices per square footage
3. Average closing costs of two-bedroom houses according to Smart Asset’s closing cost calculator
All these metrics are different in each state, and the researchers had to calculate the average costs before coming up with the ranking. From this, Massachusetts was the topmost state with the most expensive two-bedroom house prices. Even though the listing price was $479,000, which is lower than in California and Hawaii at $550,000 and $630,000, respectively, Massachusetts ended up with higher prices.
One of the main reasons is high effective property taxes applied, which was 1.18% higher than in both states. Another state is new jersey which also happens to have a high property tax rate, which stands at 2.43% compared to low rates in West Virginia, which are about 0.56%. Such property tax rates make it difficult to own even an average home as small as a two-bedroom house since it is unaffordable to a large population.
High property tax rates in Massachusetts, Hawaii, New York, and new jersey have made many people go for renting apartments instead of becoming homeowners since even the mortgage rates are also high and unaffordable.
What Factors Determine The Prices Of Two-Bedroom Houses In Different States?
Several factors are considered when deciding on any house price ranging from logical based to economic and population density factors. In addition, other factors are intangible such as the look and feel of the neighborhood.
Below are some key factors which affect two-bedroom houses prices in different states;
Supply And Demand
A short supply of two-bedroom houses will attract high prices, whereas a high supply will cause lower prices. For instance, Hawaii and California have few two-bedroom houses due to the lifestyle people lead in these states. Most houses are semi-mansions and mansions. Therefore, few two-bedroom houses exist, making them very expensive.
When interest rates in a given state go high, mortgage lenders also increase their costs of mortgage payments. High mortgage rates, in turn, make buying a two-bedroom house less affordable since a slight increase in mortgage rates translates to a significant impact on home affordability.
As the economy grows, so do people’s wages translating to affordability, leading to a general increase in demand. An increase in demand leads to higher prices, which explains why states like West Virginia have affordable two-bedroom houses. It is due to a lack of development resulting from slow economic growth.
It is only logical for a two-bedroom house to be expensive if located closer to the CBD since such a location could be better if there were rental apartments, which would collect more for the owner. In places where there is vast land to build houses, such as Alabama and West Virginia, a two-bedroom house will be cheaper.
Two-bedroom house prices vary from state to state, depending on factors like property tax and mortgage rates. Other significant factors affecting their prices are location, economic growth, and demand and supply of the two-bedroom house in a given state. For example, West Virginia has the cheapest and most affordable two-bedroom prices, whereas Massachusetts and Hawaii have the most expensive price rates.