The Show-Me State has a little something for everyone, whether it’s the barbecue scene of Kansas City, the historic charm of St. Louis or the natural beauty of the Ozarks. And unlike many states, Missouri’s housing market still offers a level of affordability that can make homeownership a reality. As of July 2025, the median home sale price here was just $288,500, according to Redfin — far less than the national median of $443,019.
But buying a home in Missouri still takes preparation and planning. From choosing the right part of the state to researching financing options, here’s your guide to navigating the Missouri homebuying process.
Deciding where to live in Missouri
The housing market in different parts of Missouri varies as much as the landscape of the state itself. When deciding where to live, it helps to ask yourself what kind of environment you can see your family in. Would you thrive in a bustling urban center like St. Louis? Or maybe a more laid-back lifestyle in Springfield, where outdoor recreation is just minutes away? Rural areas and small towns, notably those in the Ozarks or northern locations, offer even more affordability and space for homebuyers.
Budget will also play a big role in your decision on where to settle. Housing costs can differ significantly from one market to another. For example, the median home price in O’Fallon, just outside St. Louis, was $365,000 in July, while in Springfield the median was just $205,000.
A cost of living advantage
Missouri’s overall cost of living is about 10 percent below the national average, according to RentCafe. That’s thanks in large part to its relatively affordable housing prices, but daily expenses like groceries, utilities and healthcare also tend to be lower (by about 2 to 8 percent). That means your homebuying budget can stretch further here than in many other parts of the country. Use Bankrate’s cost of living calculator to get a sense of what you’ll spend in any of the state’s major metro areas.
First-time homebuyers in Missouri
Repeat homebuyers are at a bit of an advantage, as they can put the proceeds from the sale of their current home toward buying their next one. For first-time buyers, affordability can be more of a challenge.
One good rule of thumb to follow is the 28/36 rule, which advises keeping your housing costs to no more than 28 percent of your monthly income. Bankrate’s home affordability calculator can help you crunch the numbers to find out how much house you can afford.
Also, like most states, Missouri offers down payment assistance programs that can make buying more attainable by helping first-time buyers cover their down payment and closing costs. You might also check out the Missouri Housing Development Commission website to see if you qualify for any of their offerings.
How to buy a house in Missouri
1. Save for a down payment
The amount you’ll need depends on the home’s purchase price and the type of loan you’re securing to finance it. A 20 percent down payment on a median-priced $288,500 Missouri home would come to $57,700 — but there are many loans that require much less than that. In fact, the median down payment for the state was just $37,361 as of June 2025, according to data from ATTOM.
2. Get preapproved for a mortgage
A mortgage preapproval shows sellers that you’re serious, not just a lookie-loo, and gives you a clear sense of your price range. Many lenders can help you complete this step online.
3. Team up with a local agent
An experienced real estate agent who knows your area well can direct you to the neighborhoods and listings that fit your budget, as well as help you make competitive offers and navigate local market trends.
4. Start house hunting
Know your non-negotiables, which may include things like number of bedrooms or school district, and be open to compromise on your less-critical wish-list items. Keep in mind that Missouri’s condo and townhome markets can be more affordable than a freestanding home — the state’s median condo price is just $219,900, according to Redfin.
5. Make an offer
Once you’re ready to make an offer, lean on your agent for advice about how much to bid. They will understand the market conditions in your specific location. In some areas, you may face bidding wars, while in others you might be able to negotiate well below asking price.
6. Compare lenders
When it comes time to officially apply for a mortgage, you’re not locked into the lender that preapproved you. Shopping around and comparing lenders can help you find the most competitive rate and terms. Start by exploring the best lenders in Missouri, and remember that some specialize in certain programs, like USDA loans for eligible rural purchases or FHA loans for those with lower credit scores.
7. Schedule inspection and appraisal
If you’re financing the purchase, your lender will require an appraisal to confirm the property’s value. Even if you’re confident about the property’s condition, a home inspection can uncover costly issues before closing. If any problems are found, you may be able to get the buyer to pay for whatever repairs are needed.
8. Final walk-through and closing
Before the closing, you’ll walk through the home one last time to make sure it’s in the expected condition and ready to move into. The closing itself is where all the money will change hands, including closing costs and real estate agent commissions. You’ll also need to sign a boatload of paperwork — and then, at the end, you’ll get the keys to your new house.
Bottom line
From the fast pace of Missouri’s big cities to the rural charm of its small towns, the state offers a range of housing options at prices that are very accessible compared to much of the country. With thoughtful planning and the help of local experts, buying a home in the state of Missouri can be an attainable financial milestone.
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