Why Are Houses So Cheap in West Virginia?

West Virginia’s housing market is notably more affordable than in many other states. This affordability stems from interconnected factors within the state’s economic landscape, population shifts, and physical environment. These dynamics influence demand and supply in its real estate sector, contributing to lower property values. This article explores these underlying reasons.

Economic Factors Influencing Housing Costs

West Virginia’s economic conditions, particularly its job market and income levels, significantly influence its housing market. The average household income is $78,799, approximately 29% lower than the national average of $110,491. The median household income is $57,917, about 26% below the national median of $78,538, placing West Virginia among states with the lowest median incomes. These lower incomes limit what residents can pay for homes, reducing overall demand.

The state’s job market has faced challenges. Between May 2024 and May 2025, West Virginia lost approximately 9,400 non-farm jobs, a 1.3% decrease and the largest decline among all states. While the unemployment rate in May 2025 was 3.8%, below the national average of 4.2%, employment growth has lagged at -0.3% annually over the past five years, compared to the national average of 1.2%. This persistent decline in opportunities and slower job growth reduces the pool of potential homebuyers and their purchasing power.

The decline of traditional industries, particularly coal mining and manufacturing, has reshaped West Virginia’s economy and housing market. Coal mine employment fell from over 100,000 to fewer than 20,000. State coal production declined 38%, with prices falling 71% since 2008, leading to significant reductions in income and property tax revenues in coal-producing counties. This industrial contraction has left many communities with fewer well-paying jobs, directly affecting housing demand and property values.

West Virginia’s economy has faced diversification challenges, limiting new job creation and population growth. While some northern counties show job growth, this is not widespread. Reliance on traditional sectors and slow development in new industries means fewer opportunities for economic expansion and increased housing demand. This lack of broad economic diversification contributes to a weaker housing market compared to states with more robust and varied economic bases.

Demographic Trends and Population Dynamics

Population shifts significantly influence West Virginia’s housing values, driven by population decline, out-migration, and an aging populace. Between 2010 and 2020, the state experienced a 3.3% population decrease, losing approximately 59,000 residents—the highest percentage decline nationally. This reduction directly translates to reduced demand for housing units, contributing to lower prices. The state’s population has steadily declined since its 1950 peak of two million.

Out-migration, especially of younger and working-age individuals, has diminished the pool of potential homebuyers. While recent years show positive net migration (a gain of 978 residents in 2023, and 9,730 over three years ending July 2023), this influx has not offset the overall population decrease caused by a higher death rate than birth rate. The continued departure of a segment of the workforce reduces the demographic most likely to purchase homes, particularly larger family residences.

West Virginia has a notably aging population, influencing housing market dynamics. It ranks third nationally, with 20.5% of its population aged 65 or older. Projections indicate residents aged 60 and above could reach 30% by 2030, while the prime working-age population declines. An older population generally has different housing needs, often downsizing or remaining in existing homes. This leads to less new construction and reduced demand for starter or family-sized homes, creating a market with less buyer competition and contributing to affordability.

Geographic and Infrastructure Impact on Property Values

West Virginia’s geography and infrastructure significantly shape property values. Mountainous terrain presents substantial challenges for large-scale development and construction. Building industrial or commercial facilities requires significant upfront investment in earth-moving, making development more costly and less competitive than in flatter regions. This challenging topography limits easily developable land in some areas and contributes to a dispersed population, leading to less concentrated housing demand.

The remoteness of many areas from major metropolitan centers affects desirability and property values. Many communities lack easy access to large urban job markets or amenities. While West Virginia has a vast road network, 47% of its major roadways are in poor or mediocre condition, increasing vehicle operating costs. Additionally, 21% of the state’s bridges are structurally deficient, impacting transportation efficiency and connectivity.

Infrastructure gaps, particularly broadband internet access, influence property values and desirability. West Virginia ranks 47th among states for broadband connectivity; approximately 30% of residents, or half a million people, lack high-speed internet. This is pronounced in rural areas, where nearly half the population lacks reliable service. The absence of consistent broadband limits opportunities for remote work, education, and services, making these areas less attractive to potential homeowners.

The costs of providing essential public services like water and wastewater infrastructure impact development. Estimates for public water service to unserved customers are around $2.2 billion, and wastewater services could cost approximately $10.1 billion. The state’s geography further increases these costs for underground infrastructure. These factors contribute to higher development expenses and can deter new construction, influencing home availability and pricing.