Buyer Beware: 10 States Where Homebuyers Are Most Likely To Buy a ‘Lemon’

old run down house for remodel
Johnrob / Getty Images/iStockphoto

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Purchasing a home is traditionally the largest purchase many Americans will make in their lives. For many would-be homebuyers, they spend years saving money just to make a sizable down payment so their dream can become a reality. If you are purchasing an aging home, that dream can quickly turn into a nightmare.

Similar to “lemon” cars, it’s possible to buy a “lemon” home. A lemon house is a property with significant defects that not only affect value but also safety or habitability. Interestingly, some states are more prone to having lemon properties than others.

Top States Where Buyers Are Most Likely To Buy a Lemon

While it’s possible to find a lemon house in any location, some states are worse than others. Lemon properties often share similar characteristics: They’re older homes with significant plumbing, structural, electrical, wiring or roof issues, according to MovingPlace.

MovingPlace used these metrics to create a lemon home risk score on a scale of 0 to 100. Here are the top ten states where buyers are most likely to purchase a lemon property.

Rhode Island

  • Lemon Home Risk: 86/100

Ohio

  • Lemon Home Risk: 81/100

Massachusetts

  • Lemon Home Risk: 77/100

Connecticut

  • Lemon Home Risk: 75/100

Iowa

  • Lemon Home Risk: 72/100

New York

  • Lemon Home Risk: 68/100

Pennsylvania

  • Lemon Home Risk: 66/100

Indiana

  • Lemon Home Risk: 65/100

West Virginia

  • Lemon Home Risk: 65/100

Michigan

  • Lemon Home Risk: 60/100

What Makes These States Special?

A glance at the worst states for lemon homes reveals one key insight: Most of the homes are in the Rust Belt. The Rust Belt was home to substantial manufacturing, but it’s also an older region of the United States. It’s not surprising, then, that many of the homes in these locations are older than those in other areas of the country.

Roughly half (48%) of the homes in America date back to the 1980s or earlier, according to the National Association of Home Builders (NAHB). In fact, according to the NAHB, the median age of owner-occupied homes was 41 years in 2023, an increase of ten years since 2005.

Even if sellers have made improvements when selling these homes, it’s no guarantee that they’re anything more than cosmetic. Cosmetic improvements are undoubtedly important, but if they cover over a larger problem, it may go unnoticed before a sale. Many of these states also face inclement weather, which can cause problems over the life of a property.

How Americans Can Sidestep the Lemon Home Trap

A home inspection is the best way to detect problems in a property before purchase. However, homebuyers can waive inspections in some cases, largely due to a competitive market. According to the National Association of Realtors, 21% of buyers waived home inspections in September 2025.

Waiving a home inspection contingency carries inherent, possibly unnecessary risks for homebuyers. An inspection may not catch everything, but one from a reputable inspector can provide peace of mind that any glaring problems are caught.

Home inspection laws do vary by state, according to Zillow, but it’s important to weigh the risk of forgoing an inspection during the purchase process, especially as economic headwinds strengthen for many Americans.

Buying a home can be an exciting time for many Americans. Purchasing a lemon can quickly turn that excitement into concern over potential financial impacts.

BEFORE YOU GO

See Today's Best
Banking Offers

Looks like you're using an adblocker

Please disable your adblocker to enjoy the optimal web experience and access the quality content you appreciate from GOBankingRates.

  • AdBlock / uBlock / Brave
    1. Click the ad blocker extension icon to the right of the address bar
    2. Disable on this site
    3. Refresh the page
  • Firefox / Edge / DuckDuckGo
    1. Click on the icon to the left of the address bar
    2. Disable Tracking Protection
    3. Refresh the page
  • Ghostery
    1. Click the blue ghost icon to the right of the address bar
    2. Disable Ad-Blocking, Anti-Tracking, and Never-Consent
    3. Refresh the page