These Are America’s Best States for Buying and Selling a Home in 2025
The American housing market is in flux. Persistent inventory shortages and climbing mortgage rates continue to suppress affordability for buyers, while sellers grapple with shifting demand and market uncertainty. Yet, the severity of this crisis varies dramatically across the country. For businesses deciding where to expand or relocate, the local residential real estate landscape is a critical factor—employees need attainable housing that also serves as a sound investment.
CNBC’s annual America’s Top States for Business study evaluates each state’s housing market through the lens of affordability and value. We analyze price appreciation, seller gains, inventory levels, housing starts, and market stress indicators like foreclosures and underwater mortgages. While every individual’s priorities differ, the states detailed below offer the most compelling balance of opportunity for both buyers and sellers in 2025.
Virginia
Economy Rank: No. 11 (Top States Grade: B)
The Old Dominion offers a robust housing market characterized by steady demand and a strong economic foundation. While affordability remains a challenge, particularly in the Northern Virginia corridor, Virginia’s market benefits from healthy price appreciation and a generally stable supply of housing stock. Property taxes are moderate compared to the national average, and home equity levels remain strong, providing a solid backdrop for both buying and selling activities. However, the state’s high cost of living in its most desirable areas continues to be a significant barrier for many prospective homeowners.
Appreciation: 5.2%
Inventory: 3 months
Affordability Score: 0.58
Effective Property Tax Rate: 0.80%
Median Sales Price: $425,000
New Hampshire
Economy Rank: No. 15 (Top States Grade: B-)
New Hampshire presents a unique and increasingly attractive housing proposition. Known for its lack of state income tax and low property taxes, the Granite State appeals to those seeking fiscal efficiency. The housing market here is experiencing a renaissance, with strong demand from both domestic and international buyers drawn to the state’s natural beauty and quality of life. Inventory levels are beginning to stabilize, easing some of the intense bidding pressures seen in recent years. Price appreciation has been consistent, and while the market can be competitive, sellers are generally finding strong returns on their investments.
Appreciation: 6.1%
Inventory: 2.5 months
Affordability Score: 0.55
Effective Property Tax Rate: 1.25%
Median Sales Price: $460,000
Colorado
Economy Rank: No. 9 (Top States Grade: B+)
The Centennial State continues to be a magnet for those seeking an active lifestyle and economic opportunity. Colorado’s housing market is dynamic, with a healthy mix of new construction and existing home sales. While prices have risen sharply in recent years, the market is showing signs of moderation, offering a more balanced environment for both buyers and sellers. Home equity remains robust, and property taxes are relatively low. The state’s economy is strong, supporting sustained housing demand, though affordability challenges persist in the Denver metro area and other popular locales.
Appreciation: 5.8%
Inventory: 3 months
Affordability Score: 0.51
Effective Property Tax Rate: 0.48%
Median Sales Price: $550,000
Minnesota
Economy Rank: No. 14 (Top States Grade: B-)
Minnesota offers a compelling housing market for those who value stability and quality of life. The North Star State boasts low foreclosure rates and a well-educated workforce, contributing to a resilient housing sector. Inventory levels have improved in recent years, providing more choices for buyers. Price appreciation has been steady, and property taxes, while not the lowest, are offset by strong public services and amenities. The market is particularly attractive for families seeking affordable, well-built homes in desirable communities.
Appreciation: 5.4%
Inventory: 3.5 months
Affordability Score: 0.62
Effective Property Tax Rate: 1.15%
Median Sales Price: $380,000
Maine
Economy Rank: No. 20 (Top States Grade: C+)
The Pine Tree State has emerged as a surprise housing market contender, driven by remote work trends and a desire for a higher quality of life. Maine offers a unique blend of natural beauty, affordability, and community-focused living. Inventory levels have increased, and while price appreciation has been strong, it remains more sustainable than in many other coastal states. Property taxes are relatively low, and the market is characterized by strong demand from both year-round residents and seasonal buyers. For sellers, the long-term value proposition remains excellent, while buyers can find a range of attractive options.
Appreciation: 6.5%
Inventory: 3 months
Affordability Score: 0.60
Effective Property Tax Rate: 1.30%
Median Sales Price: $420,000
Vermont
Economy Rank: No. 18 (Top States Grade: C+)
Vermont’s housing market offers a tranquil and appealing option for those seeking a slower pace of life without sacrificing economic opportunity. The Green Mountain State has seen a surge in interest from remote workers and those seeking a more sustainable lifestyle. Inventory levels are healthy, and while price appreciation has been modest, it is consistent with the state’s stable economic environment. Property taxes are relatively low, and the market benefits from strong community ties and a high quality of life. Sellers can expect steady demand, while buyers will find a range of charming and affordable properties.
Appreciation: 5.9%
Inventory: 3.5 months
Affordability Score: 0.57
Effective Property Tax Rate: 1.65%
Median Sales Price: $395,000
North Dakota
Economy Rank: No. 6 (Top States Grade: B+)
North Dakota presents a compelling case for those seeking affordability and economic stability. The Peace Garden State boasts low housing prices, low property taxes, and a strong economy driven by agriculture and energy. Inventory levels are healthy, and the market is characterized by steady demand and limited competition. While price appreciation may not match coastal markets, the long-term value proposition remains strong. For sellers, the market offers predictable returns, while buyers can find a wide range of affordable homes in desirable communities.
Appreciation: 5.1%
Inventory: 4 months
Affordability Score: 0.70
Effective Property Tax Rate: 0.95%
Median Sales Price: $290,000
Alabama
Economy Rank: No. 2 (Top States Grade: A)
The Yellowhammer State has emerged as a housing market leader, offering an exceptional combination of affordability, economic growth, and quality of life. Alabama’s housing market is characterized by strong demand, healthy price appreciation, and robust construction activity. Inventory levels are healthy, and property taxes are among the lowest in the nation. Home equity levels are strong, and foreclosure rates are low, indicating a stable market. For both buyers and sellers, Alabama presents an increasingly attractive environment with ample opportunity.
Appreciation: 7.2%
Inventory: 3.5 months
Affordability Score: 0.68
Effective Property Tax Rate: 0.41%
Median Sales Price: $310,000
South Dakota
Economy Rank: No. 3 (Top States Grade: A)
The Mount Rushmore State offers one of the most attractive housing markets in the nation. South Dakota combines low taxes, a strong economy, and a high quality of life, making it an ideal destination for both buyers and sellers. Inventory levels are healthy, and price appreciation has been steady and sustainable. Property taxes are among the lowest in the country, and home equity levels remain strong. The market is characterized by low competition and a vibrant community atmosphere, making it an excellent choice for those seeking affordability and value.
Appreciation: 6.8%
Inventory: 4 months
Affordability Score: 0.72
Effective Property Tax Rate: 0.55%
Median Sales Price: $340,000
Montana
Economy Rank: No. 16 (Top States Grade: C+)
Montana stands out as the best state for buying and selling a home in 2025, offering a compelling combination of natural beauty, economic opportunity, and housing market stability. The Treasure State has seen a surge in interest from remote workers and those seeking a higher quality of life, driving healthy demand in the housing market. Inventory levels are improving, and while price appreciation has been strong, it remains sustainable. Property taxes are relatively low, and the market benefits from a strong sense of community and a high quality of life. For sellers, the market offers excellent returns, while buyers can find a wide range of attractive properties in a pristine natural environment.
Appreciation: 7.5%
Inventory: 3 months
Affordability Score: 0.53
