For those who are buying a home for the first time, Missouri offers a refreshing dose of accessibility.
With relatively low housing costs, modest income requirements, and diverse towns and cities, the Show-Me State is emerging as a top contender for first-time homebuyers looking for value.
But the moment might be passing many by, if they don’t move quick to buy in certain up-and-coming areas.
Missouri Keeps Starter Homeownership Within Reach
The average starter home in Missouri costs $188,480, placing it well below the national median of $431,250.
To afford that kind of home at today’s 7% mortgage rate, with 10% down, a household would need to earn about $45,143 per year. That makes Missouri one of the most affordable states to live in the nation, particularly when compared with its neighbors.
For example, Illinois requires an income of around $38,000 for a starter home, but homes are generally smaller and located in more competitive markets. Meanwhile, thought Kansas, Arkansas and Kentucky are in the same affordability range, they lack the diversity of communities that Missouri can offer.
Over the past five years, the price of starter homes in Missouri has risen by 63%, and monthly payments have jumped 130%—a sharp climb, but still less drastic than in coastal or high-growth Western states.
Missouri’s Best and Worst Cities for Starter Homes
Missouri offers a variety of housing markets, from bustling metros to small-town charm. For first-time buyers, some of the best places to shop for a starter home include:
- St. Joseph: Located north of Kansas City, this city boasts starter homes under $140,000 with excellent community services.
- Springfield: A growing hub in southwest Missouri, where median starter home prices are around $160,000.
- Jefferson City: The capital offers solid schools, job stability, and homes often priced near $170,000.
These cities offer a mix of affordability and livability—perfect for buyers taking their first steps into real estate.
On the other hand, some Missouri markets are proving more difficult for budget-conscious buyers:
- St. Louis (central neighborhoods): While outer suburbs offer deals, many urban cores have seen prices rise above $240,000.
- Kansas City (popular districts): Hot areas like Brookside and Waldo push starter home prices toward $250,000 or higher.
- Columbia: Home to the University of Missouri, demand from faculty and students drives prices for entry-level homes to around $230,000.
While still affordable compared to many other regions, these higher-cost areas may require additional financial support, including down payment assistance or dual-income households.
Is a Missouri Starter Home Worth It?
Missouri maintains a good affordability profile. The state’s median listing price is $298,696, and the median household income is $68,010, which places it firmly in the “affordable” category by Realtor.com® standards. The state received a “C” grade in the latest housing affordability and homebuilding report card—not the best, but reflective of steady affordability and solid, if not booming, construction activity.
Missouri’s permit activity for new homes sits slightly below the national average, representing 1.2% of U.S. building permits while holding about 1.8% of the population. This gap indicates that home inventory may tighten over time, potentially pushing prices upward—but also potentially creating returns for those who buy now.
For first-time homebuyers looking at mortgages, Missouri offers many accessible programs, from FHA and USDA loans to state-specific down payment assistance initiatives through the Missouri Housing Development Commission. These tools can help new buyers overcome the biggest barrier to entry: the upfront cost.
For anyone researching the steps to buying a house and wondering how to qualify for a home loan, Missouri delivers a market with low thresholds, diverse communities, and good potential for future appreciation. In a housing landscape where affordability is increasingly rare, Missouri continues to show that homeownership is still within reach for everyday Americans.
Carol McDaniel is a dedicated and results-driven professional with 5 years of experience and US News. Known for her strong problem-solving skills and collaborative mindset, Carol has built a reputation for delivering high-impact results across diverse teams and projects.
Throughout her career, she has demonstrated expertise in 2 core skills or areas, e.g., client relations and project coordination, and is passionate about continuous learning and meaningful contribution. Carol thrives in dynamic environments and consistently brings professionalism, adaptability, and a focus on growth to every role she takes on.