Housing Affordability in Mississippi

Housing Affordability in Mississippi: How Home Prices Compare to Local Incomes

Affordability remains one of the most important issues shaping today’s housing market, and in Mississippi the conversation is particularly nuanced. While the state is often cited as one of the most affordable places to buy a home in the United States, affordability cannot be evaluated on home prices alone. The true measure lies in how housing costs align with local household incomes. When viewed through that lens, Mississippi’s real estate market presents both opportunities and challenges.

Mississippi Home Prices: Low by National Standards

Mississippi continues to benefit from relatively modest home values compared to national averages. Depending on the data source and region, median home prices across the state generally fall between the high $180,000s and the mid-$200,000s. This is significantly lower than the national median, which has hovered around or above $400,000 in recent years.

For buyers relocating from higher-cost states or metropolitan areas, Mississippi home prices can feel exceptionally affordable. Lower land costs, slower population growth, and less speculative pressure have historically kept prices from escalating at the pace seen in many coastal or Sun Belt markets.

However, affordability is ultimately local. A lower purchase price does not automatically translate to affordability if incomes are also lower.

Median Income Tells the Other Half of the Story

Mississippi’s median household income is approximately $55,000, ranking among the lowest in the country. This income reality plays a critical role in housing affordability. When median home prices are compared directly to median household income, Mississippi’s price-to-income ratio generally falls between 4.5 and 5.0 statewide.

Traditionally, housing economists consider a price-to-income ratio of three times annual income or less to represent a broadly affordable market. By that benchmark, much of Mississippi exceeds the “ideal” affordability threshold, even though prices are lower than national norms.

In practical terms, this means that many Mississippi households must stretch financially to purchase a median-priced home, particularly when interest rates, property taxes, insurance, and maintenance costs are factored in.

Starter Homes Remain Attainable — With Limits

The affordability picture improves somewhat at the entry-level. Starter homes priced in the $170,000 to $190,000 range remain accessible to many Mississippi households, especially for buyers with stable employment, manageable debt, and access to favorable loan programs such as USDA, FHA, or VA financing.

For these buyers, monthly mortgage payments can align reasonably well with median incomes, particularly in rural areas or smaller cities. This dynamic helps explain why homeownership rates in Mississippi remain relatively strong despite income constraints.

That said, inventory in the truly affordable segment has tightened. New construction costs have risen, and many homes once considered entry-level have moved into higher price brackets. As a result, first-time buyers face increased competition and fewer options.

Regional Differences Matter

Affordability varies dramatically across Mississippi depending on location. Smaller towns and rural ZIP codes often show very low price-to-income ratios, sometimes close to or even below two times median income. In these areas, homeownership remains highly attainable for local residents.

In contrast, higher-demand markets tell a different story. College towns, economic hubs, and coastal communities often experience home price growth that outpaces local wage growth. In some counties, price-to-income ratios rise sharply, reflecting limited supply, lifestyle demand, and stronger in-migration.

Along the Mississippi Gulf Coast, for example, higher construction costs, insurance expenses, and demand for newer or waterfront properties can push affordability well beyond the statewide average, even though prices remain modest compared to other coastal states.

Housing Cost Burdens Are a Growing Concern

Despite relatively low prices, a significant portion of Mississippi households are considered “cost-burdened,” meaning they spend 30 percent or more of their income on housing. This includes not only mortgage or rent payments, but also utilities, insurance, and maintenance.

This reality underscores an important point: affordability challenges in Mississippi are driven as much by income limitations as by housing costs. Even modest increases in home prices, interest rates, or insurance premiums can have an outsized impact on household budgets.

Mississippi in a National Context

When compared to other states, Mississippi remains affordable in absolute terms. Buyers generally need far less capital to enter the market than in high-cost regions. For investors and relocating buyers with higher incomes, this creates opportunities for value, cash flow, and long-term appreciation.

For local residents, however, affordability is more constrained. Lower wages mean that even below-average home prices can feel expensive, especially as borrowing costs fluctuate and living expenses rise.

The Bottom Line

Mississippi’s real estate market occupies a middle ground in the affordability conversation. Homes are inexpensive compared to national averages, but local incomes limit purchasing power. Starter homes remain attainable in many areas, while higher-priced submarkets challenge affordability for local buyers.

Ultimately, Mississippi’s affordability story is not one of cheap housing alone, but of balance — or imbalance — between prices and incomes. Buyers, sellers, and policymakers alike must consider both sides of the equation when evaluating the state’s housing market today and in the years ahead.

Sarah Craddock, Broker Associate

Blackwater Realty

C: 251-289-7958

O: 228-344-2087

sarahcraddockagent@pm.me

www.sarahcraddockagent.com