Mississippi’s housing market saw significant changes from 2018 through 2023, especially for middle-income families (household incomes under $250,000). Overall, home prices in the state climbed sharply during this period. After years of modest growth in the 2010s, Mississippi’s typical home value surged by roughly 40–50% between 2018 and 2023.
Despite these gains, Mississippi remains one of the most affordable housing markets in the U.S. – the typical home price (around $158,000 for a ~1,900 sq. ft home as of a few years ago) is less than half the national average. The state also boasts one of the highest homeownership rates in the country at roughly 74–75%, reflecting a culture of homeownership even among moderate-income households.
Median House Prices In Mississippi
For individuals and families earning under $250,000 annually, understanding the fluctuations in Mississippi’s housing market is crucial. The data indicates a general upward trend in home prices over the past decade, punctuated by occasional declines. Significant price jumps, like the substantial increase of over $18,000 in 2022, can strain affordability for homebuyers in lower- and middle-income brackets. Even modest percentage increases year-over-year can considerably impact monthly mortgage payments and affordability, especially when interest rates rise simultaneously.
Potential homebuyers with more limited budgets should monitor these fluctuations closely, aiming to purchase during periods of market correction—such as those seen in 2023 and 2024. These downward shifts, while sometimes temporary, offer opportunities for buyers earning under $250,000 annually to enter the market at a more affordable level. Additionally, buyers in this income range may consider securing financing pre-emptively or exploring areas within Mississippi that offer more stable or lower home prices to maintain affordability amidst these trends.
The Pandemic Impact on Housing (2020-2021)
From 2018 to 2019, Mississippi’s housing activity was steady, with gradually rising prices amid a stable economy. Entering 2020, the COVID-19 pandemic injected both turbulence and opportunity into the market.
In the early pandemic months, home sales briefly paused due to lockdowns, but low interest rates and pent-up demand soon sparked a housing boom. By 2021, Mississippi experienced frenzied buying similar to national trends: inventories hit record lows and prices accelerated.
In the central Mississippi market (around Jackson), the number of homes on the market in early 2021 was 57% lower than a year prior, and the median sale price had jumped about 9% (to $215,000). Bidding wars became common even in affordable segments, as historically low mortgage rates (near 3%) enabled many budget-conscious buyers to purchase homes that were previously just out of reach.
Amid this boom, Mississippi’s homeownership rate actually ticked up after 2020 – rebounding from about 68% in 2010 to roughly 75% by 2023 – as more renters took the plunge into homeownership during the pandemic housing rush.
The Cooling Market (2022-2023)
By late 2022 and 2023, the statewide market cooled from its peak frenzy. The Federal Reserve’s interest rate hikes pushed typical 30-year mortgage rates above 6–7%, dramatically reducing buyers’ purchasing power. Homes remained expensive, but sales volume slowed because higher monthly payments strained many working-family budgets.
Inventory levels in 2023 improved slightly from the extreme lows of 2021, but remained below normal. Realtors in Mississippi noted that the climate in 2023 was “drastically different” – the era of 10 competing offers and homes selling in days had subsided. In early 2023, real estate brokers forecasted about a 7% decline in sales for the year, after the exceptional highs of 2020–2021.
Indeed, buyers became more cautious: whereas a year prior a seller might have seen 5–10 offers on an affordable home, by 2023 they might see only 2 offers on average. Price growth flattened statewide in 2023 (with Mississippi home prices up a modest ~2–4% year-over-year).
Types of Properties Purchased
Single-Family Homes
Single-family homes were by far the most common property type purchased by Mississippi households from 2018 to 2023. The vast majority of home sales in Mississippi are detached single-family houses, which is typical for a rural-heavy state. These include everything from small starter homes in town to newer suburban houses with land.
For moderate-income buyers, older houses under 2,000 sq. ft. in established neighborhoods often provided the best value. Mississippi’s median listing price for single-family homes remained among the lowest in the nation (hovering in the $150K–$200K range during this period), which kept this category the primary target for families on a budget.
Manufactured Homes
Manufactured homes (mobile homes) also comprised a significant share of purchases, reflecting Mississippi’s reliance on this affordable housing option. Mississippi actually leads the nation in the proportion of new single-family housing that is manufactured homes: nearly 29% of new single-family units in recent years were factory-built (the highest share of any state).
Lower-income and rural buyers often chose manufactured homes due to their lower upfront cost. Throughout 2018–2023, demand for manufactured housing stayed strong – so much so that prices for new manufactured homes also rose (mirroring site-built home inflation).
The average new manufactured home in the U.S. cost about $124,300 in 2023, up substantially from a few years prior, though still roughly half the cost of a typical site-built home. In Mississippi, many budget-conscious families were drawn to this option, especially if they owned land or could place a mobile home on family property.
The state’s status as a lower-income region (with about 20% of residents below poverty line) made manufactured homes an “affordable alternative” for those who might otherwise be priced out of the market. It’s common in rural Mississippi to see buyers purchasing a plot of land and a new mobile home as a package – a trend that persisted through the pandemic years.
Townhouses and Condos
Townhouses and condos represent a relatively small slice of Mississippi home purchases, but they are notable in certain areas. Unlike many states, Mississippi has a limited supply of condominiums and townhomes, since most housing is low-density.
However, in urban pockets like downtown Jackson and in some coastal communities (e.g. Biloxi/Gulfport), condos became an attractive option for downsizers and first-time buyers seeking low maintenance living. During 2018–2023, condos and townhomes in Mississippi saw moderate demand.
Some new townhome developments appeared in suburbs of Jackson and around college towns like Oxford and Starkville, aiming to provide modern homes under $200K. These properties appealed to young professionals and also to some retirees (who wanted to downsize but remain homeowners).
Rural Properties
Another property type worth mentioning is “starter” rural properties – small homes on a few acres, or older farm houses – which many Mississippians purchased in this period. With the pandemic’s wave of remote work, a number of families sought out country homes where they could get more space for the dollar.
Mississippi’s plentiful rural land and cheap older housing made such purchases feasible for under $150,000 in many cases. From 2020–2022 especially, local agents reported an uptick in buyers looking for homes with land (gardens, space for chickens, etc.), reflecting a slight shift in preferences toward rural living.
This trend within single-family sales showed how priorities changed – people were often willing to buy an older home farther out (sometimes even a fixer-upper farmhouse) if it meant an affordable price and more self-sufficiency.
Regional Insights: Urban vs. Rural Patterns
Homebuying trends in Mississippi varied widely by region, given the state’s mix of growing suburbs, small towns, and struggling rural areas. Urban and suburban areas generally saw the strongest demand and price growth from 2018–2023, whereas some rural regions lagged or even saw declining home values.
North Mississippi (Memphis Suburbs)
The northwestern corner of Mississippi, particularly DeSoto County (part of the Memphis metro area), experienced a housing boom. This region has been one of the fastest-growing in the state. DeSoto County’s population jumped ~18% from 2010 to 2022, and cities like Olive Branch and Southaven attracted many new families.
Consequently, home sales were robust and prices rose quickly. By 2023, DeSoto County’s median home price was well above the state median (often in the $250K–$300K+ range), reflecting its suburban growth and higher incomes.
Olive Branch, MS, in fact, was ranked among the nation’s fastest-growing “affordable” suburbs; as of mid-2024 its typical home value was about $330,000, up nearly 60% over five years. For budget-conscious buyers, this area became a bit challenging, as demand pushed prices up.
However, many Memphis-area workers still chose DeSoto County for its relatively lower taxes and home costs (compared to suburban Tennessee) and the availability of new construction.
Central Mississippi (Jackson Metro)
The Jackson metropolitan area (Hinds, Madison, and Rankin counties) showed a split trend. The city of Jackson itself has very low housing prices – the average home value in Jackson was only around $70,000 in 2023, due to years of population decline and economic challenges in the city proper.
Many budget-conscious buyers could find extremely cheap homes in Jackson; however, such homes often needed repairs, and issues like an aging infrastructure (e.g. Jackson’s water system problems) dampened some buyers’ interest.
In contrast, the Jackson suburbs (like Madison, Ridgeland, Brandon, Flowood) experienced healthy demand and rising prices. Madison and Rankin counties are more affluent and grew in population as some residents left the city for the suburbs. Homes in these suburbs frequently sold to move-up buyers and families looking for better schools.
From 2018–2023, Madison County’s median home values climbed substantially, and new construction of single-family homes continued (albeit with a brief slowdown in early pandemic then a surge in 2021).
Gulf Coast (Southern Mississippi)
The coastal region (notably Harrison and Jackson counties, home to Gulfport, Biloxi, Pascagoula, and surrounding communities) showed steady if not spectacular growth. This area was still recovering in the 2010s from the dual impacts of Hurricane Katrina (2005) and the Great Recession (2008), which had suppressed home values for years.
By 2018, the Coast’s housing market had stabilized and was affordable – many homes in Biloxi/Gulfport were in the $150K range, and the area attracted some retirees and military families (with Keesler AFB and Seabee Base nearby).
During 2020–2021, the Gulf Coast saw a noticeable uptick in activity. Remote work and the search for affordable coastal living brought an “influx of newcomers” into some Coast neighborhoods. Real estate agents reported out-of-state buyers (from places like New Orleans, Florida, or up north) purchasing second homes or relocating to Mississippi’s coast for its low cost of living.
Home prices on the Coast did rise in 2020–2022 (double-digit percent increases in some desirable neighborhoods), though by 2023 the pace moderated due to higher insurance costs (wind and flood insurance are a factor) and higher interest rates.
By 2023, the typical home in Harrison County was around $180,000–$200,000, up from roughly $140,000 five years prior – a meaningful rise, but still within reach for many two-income Mississippi households.
Rural Mississippi and The Delta
A contrasting story played out in many of Mississippi’s rural counties, especially in the Mississippi Delta region (the agricultural flatlands in the western part of the state). These areas have faced population loss and economic stagnation for years, and that continued through 2018–2023.
The pandemic-induced housing boom largely bypassed the Delta. In fact, a study of home prices in the South noted that counties along the Mississippi Delta saw minimal or even negative price changes from 2020 to 2024. Unlike the rest of the country (which enjoyed price spikes), some Delta counties actually had decreased house prices during the pandemic period.
The primary reason is out-migration: young people leaving, few new jobs, and little demand for housing. For example, towns like Greenville, Clarksdale, and Indianola have many vacant homes and extremely low prices (you can find livable houses for under $50,000).
Budget-conscious buyers in those communities certainly have no trouble finding cheap real estate – the challenge instead is economic (jobs, amenities). From 2018 to 2023, homebuying in these rural regions was driven mostly by necessity and local circumstances (e.g. a family buying a home because it’s cheaper than rent), rather than by market frenzy.
College Towns
Mississippi’s college towns deserve special mention. Oxford, home of the University of Mississippi (Ole Miss), became one of the hottest real estate markets in the state. It has a unique mix of drivers: the university, retirees (Oxford is a noted retirement destination), and alumni or parents buying second homes for football season.
From 2018 to 2023, Oxford’s home prices skyrocketed – the typical home value reached about $374,000 (by 2023), which is roughly 59% higher than five years prior. That growth rate made Oxford the fastest-appreciating city in Mississippi during that period.
This meant budget-conscious local buyers (like young faculty or staff) had a harder time in Oxford; many ended up buying smaller condos or homes in neighboring communities. Starkville (home to Mississippi State University) and Hattiesburg (University of Southern Mississippi) also saw solid demand, though not as extreme as Oxford.
Homebuying Motivations: Upsizing, Downsizing, and Second Homes
Upsizing Trends
Many Mississippi families took advantage of the favorable conditions in 2020–2021 to upsize – i.e. move from a smaller starter home (or rental) into a larger home. Ultra-low mortgage rates greatly increased affordability for those who could qualify.
For example, a household earning $70,000 could suddenly afford a house of $250,000 with a 3% interest rate, whereas previously they might have been limited to ~$180,000. This enabled young families to jump into larger homes with extra bedrooms, big yards, or home offices (a newly important feature in the remote work era).
Realtors across Mississippi reported that between mid-2020 and late 2021, “move-up buyers” were very active. Often, these were people in their 30s or 40s who already owned a smaller home and found they could trade up without a huge increase in monthly payment, thanks to low rates.
This trend slowed by 2022–2023 once rates rose – existing homeowners then grew reluctant to lose their low interest loans. But in the 2018–21 window, upsizing was a key trend that boosted the market for mid-priced single-family homes.
Downsizing Activity
At the same time, a segment of homeowners – particularly empty nesters and retirees – were looking to downsize. Mississippi has a sizeable population of older adults on fixed incomes who own larger homes (often rural or suburban houses that are now too large or cumbersome).
From 2018 to 2023, downsizing was a steady undercurrent in the market. Some older homeowners sold their 3- or 4-bedroom family homes and moved into smaller, more manageable properties (like a 2-bedroom cottage or a condo). The motivation was often to cash out equity and reduce maintenance burdens.
The pandemic added new dimensions to downsizing: health concerns and proximity to family. For instance, a couple in their 70s in a small town might sell their farmhouse and relocate closer to their children in a Mississippi city, buying a smaller house there.
Realtors noted an uptick in retirees listing their long-time homes during the hot market of 2021 to take advantage of high prices. That said, downsizing can be tricky in Mississippi because there’s a limited supply of senior-friendly housing (e.g. single-story patio homes or condos).
Secondary/Vacation Home Purchases
The period 2020–2021 witnessed a boom in vacation home buying nationally, and Mississippi shared a piece of that phenomenon. With low interest rates and flexible work arrangements, more Americans bought second homes – and Mississippi’s affordable prices made it attractive for regional buyers seeking a weekend retreat.
The Mississippi Gulf Coast and lakes in north Mississippi (like Pickwick Lake and Sardis Lake) saw increased second-home activity. Nationally, vacation home sales spiked by 16% in 2020 (far above the growth in primary home sales), and by early 2021 they were over 50% higher than a year prior.
In Mississippi, a good number of buyers from Louisiana, Alabama, and Tennessee decided to purchase vacation properties. For example, someone from New Orleans might buy a beach cottage in Bay St. Louis or Ocean Springs; someone from Memphis might get a fishing cabin near Oxford or along the Tennessee state line.
By 2022–2023, this vacation-home wave receded as interest rates climbed and remote work patterns normalized. Nonetheless, the net effect of 2018–2023 was a higher share of Mississippi properties now owned as second homes or short-term rentals than before.
Key Factors Influencing Mississippi’s Housing Market (2018-2023)
Mortgage Interest Rates
The cost of borrowing money was perhaps the single biggest influence on homebuying activity in this period. Interest rates for 30-year fixed mortgages started around ~4.5% in 2018, fell to historically low levels (~3% or even lower) by 2020–2021, then spiked to around 6–7% by 2022–2023.
These swings dramatically changed the math for buyers. When rates dropped to record lows in 2020–2021, the monthly payment on a median-priced Mississippi home fell to very affordable levels, boosting buyers’ purchasing power.
Conversely, the rapid rise in rates in 2022 put the brakes on. By late 2022, the same home that cost $1,000/month to finance a year earlier might cost $1,400/month, pricing out many would-be buyers.
Housing Supply & Inventory
The availability of homes for sale (supply) relative to buyers (demand) was another crucial factor. Entering the period around 2018, Mississippi had a decent balance of housing supply. But by 2020–2021, supply shrank drastically.
Years of underbuilding after the last recession caught up, and the surge of buyers quickly depleted listings. Mississippi’s months of inventory hit record lows – e.g., central Mississippi had only 1.5 months of supply by early 2021, whereas 6 months is considered a balanced market.
This tight inventory gave sellers the upper hand, driving up prices as buyers competed. It also meant budget buyers had to act fast and perhaps concede on wish-list items. Constrained inventory disproportionately affects lower-priced segments, since that’s where first-time and budget-conscious buyers concentrate.
By 2023, inventory improved modestly as the market cooled: some owners listed homes to capitalize on high values, and fewer buyers were competing due to high rates.
State Housing Policies and Programs
Mississippi’s state-level housing policies played a role in supporting homebuying for moderate-income families. The Mississippi Home Corporation (MHC) continued to be a key agency providing affordable mortgage programs.
During 2018–2023, MHC offered mortgage revenue bond programs and down payment assistance targeted at first-time buyers and those with low-to-moderate incomes. Programs like Smart6, MHC’s Easy8 and Housing Assistance for Teachers provided between $6,000 and $10,000 in down payment aid or favorable financing.
For example, the Smart6 program offers a 0% interest second loan up to $6,000 that is forgiven after a certain period – effectively giving first-timers a leg up on the biggest hurdle, the down payment.
Additionally, Mississippi has relatively low property taxes (ranked among the lower states for property tax burden) and no state income tax on retirement income, which indirectly influences housing choices (encouraging retirees to remain or move here, affecting the downsizing market).
Conclusion
From 2018 to 2023, Mississippi’s housing market evolved from a period of post-recession stability into a rollercoaster of pandemic-era demand and finally into a higher-priced, higher-interest new normal.
Budget-conscious households – essentially the vast majority of Mississippi’s homebuyers – navigated these shifts with an eye on affordability. They predominantly bought single-family homes (often older or smaller homes to fit their budgets), with manufactured homes remaining a critical affordable segment.
Regionally, buyers flocked to growing suburban and exurban areas, while truly rural markets saw far less action. Many families were able to upsize during the low-rate boom, improving their living situations, whereas others chose to downsize or hold tight amid uncertainty.
By 2023, Mississippi’s home prices, while still “cheap” by national standards, were significantly less cheap relative to local incomes than five years prior. This poses ongoing challenges for young and lower-income buyers.
On the positive side, homeownership in Mississippi remains above the national average – an indicator that, even with rising costs, many families here do manage to buy homes. Factors like community and family land ties, state programs, and the ingrained notion that owning is often cheaper than renting in Mississippi have sustained the homeownership culture.
Moving forward, trends like remote work could continue to benefit Mississippi by drawing new residents seeking affordable homes. Conversely, economic headwinds or policy changes could dampen the market’s momentum for budget buyers.
In summary, the 2018–2023 period in Mississippi was a microcosm of the national housing story – rising prices, a pandemic boom, and an affordability squeeze – but tempered by local realities. Budget-conscious households remained the heartbeat of Mississippi’s homebuying market, adapting to conditions as best as possible.
References
- Local realtors see drastically different housing market ahead for 2023 – WLBT News
- U.S. States Investing Most in Manufactured Housing (2024 Edition) – Construction Coverage
- Median Home Price by State 2025 – World Population Review
- DeSoto County, MS population by year, race, & more – USAFacts
- Cities With the Fastest-growing Home Prices in Mississippi – Stacker
- How has the Pandemic Changed the House Price Landscape in the South? – Southern Ag Today
- Vacation Home Counties – National Association of REALTORS®
- Mississippi Homeownership Trends – Urban Institute
- Median Household Income by State 2025 – World Population Review
- Mississippi House Price All-Transactions Index – YCharts (FHFA Data)
- Mississippi First-Time Homebuyer Assistance Programs – Bankrate
- Jackson, MS Housing Market: 2025 Home Prices & Trends – Zillow
