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Investor Insights Blog|Most Expensive (and Least Expensive) States for IRA Real Estate Investors

Real Estate

Most Expensive (and Least Expensive) States for IRA Real Estate Investors

expensive states for real estate investors

For the fifth year, our annual Equity Trust Self-Directed Real Estate Market Report provides a glimpse into how our clients are using their self-directed retirement accounts to build wealth with real estate. Considering the economic climate, it may not be surprising that investors paid a higher median purchase price on properties in 2022 compared to 2021. The elevated prices may help explain the decline in the number of purchases year-over-year.

The price self-directed IRA real estate investors are paying for investment properties can vary greatly by state or region. The states with the highest prices among Equity Trust clients aren’t necessarily the same states that have the most expensive real estate among all buyers nationwide.

Where are self-directed real estate investors paying the most?

For the first time in five years, Idaho investment properties had the most expensive median real estate price in 2022 at just over $260,000, according to the report. The last time Idaho topped the list was in 2018.

In 2021, Hawaii topped the list for highest purchase price.

Several of the states listed in 2022 did not crack the top 10 expensive states in the 2021 report, including Idaho, New Hampshire, and Maine.

Two of the states – New Jersey and New Mexico – were listed among the 10 least expensive states in 2021, but activity in the past year has moved them to the list of top priciest states for 2022.

Here’s the entire list of the top states where Equity Trust real estate investors are paying the most for their real estate investments.

Top 10 Most Expensive States for Real Estate 2022

By median purchase price, according to Equity Trust clients’ real estate purchases in their self-directed accounts

1. Idaho – $260,399
2. Hawaii – $257,865
3. New Hampshire – $254,272
4. Maine – $227,428
5. Washington – $214,174
6. New Jersey – $191,973
7. New Mexico – $189,391
8. Utah – $184,314
9. Nevada – $160,992
10. Washington, DC – $155,088

Where are real estate investors paying the least?

Leading the pack of least expensive real estate is Alaska. Returning to the list of lowest median purchase prices after a one-year absence: Ohio.

It may surprise some to see California as one of the 10 lowest median purchase price states for real estate, but this isn’t the first year it has placed on the list. Low real estate prices for self-directed investors put California on this list for 2021 and 2020 as well.

Who else topped the list of lowest median purchase prices among Equity Trust investors? Here’s the list.

Top 10 Least Expensive States for Real Estate 2022

By median purchase price, according to Equity Trust clients’ real estate purchases in their self-directed accounts

1. Alaska – $18,360
2. Louisiana – $41,086
3. West Virginia – $42,702
4. California – $47,057
5. North Dakota – $49,430
6. Indiana – $53,818
7. Michigan – $56,348
8. Wyoming – $56,622
9. Arkansas – $57,793
10. Ohio – $63,942

Equity Trust investor activity nationwide compared to all national real estate transactions
The overall median price for all homes purchased in Equity Trust accounts in 2022 was just over $83,000.

Compare that to the overall nationwide median purchase price of all homes – not just inside an Equity Trust account – which was more than $458,000.

The disparity between the two prices illustrates the diverse range of real estate inventory available. In addition to finding lower-priced investment opportunities, some IRA investors also find opportunities to partner their accounts with other investors’ cash sources to make investments work, even with smaller-balance accounts.

See more real estate investing data: 2023 report out now

2023 Self-Directed Real Estate Market ReportAccess the 2023 Self-Directed Real Estate Market Report to dive into more real estate data, including:

  •  States with the highest and lowest purchase prices in 2022
  • Hottest markets for out-of-state buyers
  • How home prices have trended over the years for Equity Trust investors vs. the national average
  • Whether investors prefer rehabs, rentals, or flips as their go-to strategy
  • Much more

ACCESS NOW

Compare data from previous years

You’ll find data spanning as many as 10 years, giving you a fuller picture of self-directed real estate investing trends to help you prepare for what’s to come.

See more details on previous years’ most expensive states for real estate:

20212020  | 2018


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