Delaware's housing market is often perceived as "cheap" primarily due to its exceptionally low property taxes, which are among the lowest in the United States. Unlike neighboring states like New Jersey or Maryland, Delaware does not have a state-level property tax, and county taxes remain relatively low. Additionally, the state has no sales tax, which reduces the overall cost of living and construction. In 2026, Delaware's affordability is also driven by its diverse geography; while coastal areas like Rehoboth Beach are expensive, the inland and southern portions of the state (Sussex and Kent Counties) have historically had lower land costs and less dense development. However, the "cheap" label is becoming a misnomer; as of early 2026, the median home price has climbed to over $350,000 due to a surge in retirees moving from high-tax states. While still affordable compared to the Northeast corridor, the high demand and limited inventory are rapidly closing the price gap.