News Summary
The Mississippi real estate market is experiencing notable shifts with rising home prices and increased buyer interest. As of mid-2025, the average home value has reached $190,585, with median sales hitting $268,000. Despite heightened mortgage rates limiting affordability, the state remains appealing for those considering relocation due to its low cost of living and rich cultural experiences. Areas like Gulfport-Biloxi and Jackson show significant increases in home values, displaying a competitive housing environment, while affordability challenges persist, emphasizing the importance of income adjustments for potential buyers.
Jackson, Mississippi – The Mississippi real estate market is undergoing notable changes, with increased home prices and heightened interest in migration to the state. As of July 2025, the average home value in Mississippi stands at $190,585, with a median sale price recorded at $268,000 in May 2025, reflecting a more competitive housing market influenced by rising interest rates.
The overall upward trend in home prices aligns with national patterns, where the typical home value in the United States is $367,965, representing a 0.2% increase from the previous year. However, affordability challenges persist due to high mortgage rates. As of August 21, 2025, the 30-year fixed mortgage rate is 6.58%, impacting buyers’ purchasing power and contributing to a 5% decrease in homes sold in Mississippi, totaling approximately 1,944 transactions in May.
Despite these challenges, Mississippi is attracting interest from potential movers, with U.S. News & World Report listing it among the top 10 states for migration. Factors contributing to this trend include the state’s low cost of living, enriching culture, and access to natural attractions. This interest is reflected in a 7.7% increase in the number of homes listed for sale, with around 9,268 homes available in the market.
According to a report from Stacker, Mississippi features several competitive housing markets. The Gulfport-Biloxi area boasts a typical home value of $243,328, which has increased by 2.8% over the past year and by 31.9% over five years. The Memphis, TN-MS-AR metro area has the most cities represented in the top 30 for expensive homes, with a typical home value of $244,226, also showing a 39.6% five-year price increase. Other notable areas include Oxford, with home values averaging $249,754, and Jackson, where the average home value is $280,732, marking a 33.4% increase over five years.
Within Mississippi, the towns of Horn Lake, Latimer, Gulf Hills, Lyman, and Pearl rank as the most competitive housing markets. Conversely, Itta Bena emerges as the most affordable option, with a median home value of about $49,711, significantly lower than the state’s average. The town’s median household income is around $32,898, alongside a poverty rate near 29% and an unemployment rate of 15%. Despite these economic challenges, Itta Bena is rated 13th for the lowest cost of living out of 117 towns in the state.
For potential home buyers, the median household income necessary to purchase a home in Mississippi is approximately $85,239, which aligns with an average home price of $289,450. This figure underscores the importance of affordability considerations, especially in the context of increasing mortgage rates and changing market dynamics.
As of now, the average sale-to-list price ratio in Mississippi sits at 98.2%, indicating that many buyers are able to negotiate prices below the initial asking values. While the market landscape is rapidly evolving, Mississippi continues to be a destination for those seeking affordable living and a vibrant community experience.
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Additional Resources
- Leader Call: Cities with the Most Expensive Homes in Mississippi
- Google Search: Mississippi real estate market
- Clarion Ledger: Biggest Home Sale Price Hikes in MS
- Wikipedia: Real Estate in the United States
- WLOX: Mississippi Realtors Advocating Incentives
- Encyclopedia Britannica: Real Estate
- Forbes: Median Home Prices by State
- Google News: Mississippi housing market 2025
Author: STAFF HERE OXFORD WRITER
The OXFORD STAFF WRITER represents the experienced team at HEREOxford.com, your go-to source for actionable local news and information in Oxford, Lafayette County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Oxford Film Festival, Double Decker Arts Festival, and University of Mississippi football games. Our coverage extends to key organizations like the Oxford-Lafayette County Chamber of Commerce and the University of Mississippi, plus leading businesses in education and retail that power the local economy such as Ole Miss Athletics and Square Books. As part of the broader HERE network, we provide comprehensive, credible insights into Mississippi's dynamic landscape.
