Given the poor state of the current housing market, many homes have entered into foreclosure and are available for purchase at a very low price. Check out Detroit, MI homes.
Cheap houses can be found in the Midwest and rural areas such as Iowa, Nebraska, Missouri, and Illinois and even as far south as Texas, Oklahoma, and Arkansas.
Detroit, Michigan is generally regarded as having the cheapest houses in the United States. This is partially due to the economic depression this area has experienced in the past decade.