These Are America’s 10 Best States for Buying and Selling a Home in 2025, With a Big Caveat at No. 1
High interest rates and a persistent housing shortage continue to challenge both prospective homebuyers and those looking to sell. However, the severity of this residential real estate crisis varies significantly from state to state. Adding another layer of complexity, several top-ranked states are now confronting rising climate-related risks that directly impact property values and long-term affordability.
When companies evaluate where to relocate or expand, they closely examine the local housing market. Prospective employees need access to reasonably priced homes that also represent sound investments. Consequently, the health of the housing market is a critical factor in assessing a state’s overall business competitiveness.
In our annual America’s Top States for Business study, we analyze the housing market as a key component of the Economy category. This year, our methodology evaluates states based on the crucial balance between affordability and value. We assess price appreciation, seller gains, housing inventory levels, and construction starts. Additionally, we look for warning signs of market stress, such as foreclosure activity and the prevalence of underwater mortgages.
While every buyer and seller has unique priorities, the housing markets in these ten states offer the most compelling opportunities in 2025.
Delaware
Despite having only average housing affordability, The First State offers a significant advantage through exceptionally low property taxes. Delaware homeowners face an effective tax rate of less than half a percent, ranking among the lowest in the nation.
2025 Economy Rank: No. 10 (Top States Grade: B-)
Price Appreciation: 5.25%
Inventory (July): 2 months
Affordability Score (0 to 2, with 2 being most affordable): 0.58
Effective Property Tax Rate: 0.44%
Median Sales Price: $375,200
Indiana
The Hoosier State presents a rare combination of affordability—supported by low property taxes—and healthy price appreciation. Although inventory remains tight, homebuyers in Indiana can still find attractive properties at competitive prices.
2025 Economy Rank: No. 19 (Top States Grade: C)
Price Appreciation: 8.55%
Inventory (July): 2 months
Affordability Score: 0.83
Effective Property Tax Rate: 0.87%
Median Sales Price: $278,600
Georgia
Home inventories are gradually increasing in The Peach State, which is beneficial for affordability. Homebuilders have maintained an active pace, yet price appreciation continues to be robust.
2025 Economy Rank: No. 7 (Top States Grade: B)
Price Appreciation: 7.68%
Inventory (July): 3 months
Affordability Score: 0.61
Effective Property Tax Rate: 0.83%
Median Sales Price: $398,400
Tennessee
Even with some of the nation’s lowest property taxes, affordability is a challenge in The Volunteer State. A new state law includes incentives aimed at increasing the supply of affordable multifamily housing. In the single-family market, rising inventory has helped moderate price gains, potentially attracting more buyers.
2025 Economy Rank: No. 3 (Top States Grade: B+)
Price Appreciation: 6.77%
Inventory (July): 3 months
Affordability Score: 0.51
Effective Property Tax Rate: 0.45%
Median Sales Price: $405,900
Nevada
The Silver State’s housing market is historically volatile, and 2025 is proving to be no exception. However, inventory levels are manageable, and construction activity remains strong. While affordability is still a concern, price growth has moderated—a positive development for buyers, though less so for sellers. Property taxes are low, and home equity remains healthy despite a recent uptick in foreclosures.
2025 Economy Rank: No. 8 (Top States Grade: B)
Price Appreciation: 3.92%
Inventory (July): 2 months
Affordability Score: 0.45%
Effective Property Tax Rate: 0.49%
Median Sales Price: $471,800
New Jersey
Home prices in The Garden State surged last year, reflecting an active housing market. Affordability could be better, but it remains reasonably aligned with median incomes. However, New Jersey has the second-highest property taxes in the nation, trailing only Illinois, and also contends with a relatively high foreclosure rate.
2025 Economy Rank: No. 17 (Top States Grade: C+)
Price Appreciation: 11.91%
Inventory (July): 2 months
Affordability Score: 0.58
Effective Property Tax Rate: 1.65%
Median Sales Price: $548,200
North Carolina
Homebuilders are exceptionally busy in The Tar Heel State, with the second-highest number of housing starts in the country, behind only the rapidly growing state of Alabama. Despite this construction boom, inventory remains tight, sustaining strong price appreciation. Property taxes are reasonable, especially considering the state’s rapid population growth.
2025 Economy Rank: No. 4 (Top States Grade: B+)
Price Appreciation: 7.50%
Inventory (July): 2 months
Affordability Score: 0.54
Effective Property Tax Rate: 0.61%
Median Sales Price: $396,500
Arizona
Sellers in The Grand Canyon State continue to realize solid gains, even as home inventory expands. Construction activity is robust, and home equity levels are healthy. Property taxes are low, but this comes at the cost of housing affordability.
2025 Economy Rank: No. 5 (Top States Grade: B+)
Price Appreciation: 7.15%
Inventory (July): 3 months
Affordability Score: 0.46
Effective Property Tax Rate: 0.42%
Median Sales Price: $464,500
South Carolina
Home prices are on the rise in The Palmetto State, yet housing remains relatively affordable. This price appreciation is likely encouraging more construction activity, contributing to the increase in inventory levels. Property taxes are low. However, home equity could be stronger, and foreclosure rates are on the higher side.
2025 Economy Rank: No. 12 (Top States Grade: B-)
Price Appreciation: 9.94%
Inventory (July): 3 months
Affordability Score: 0.63
Effective Property Tax Rate: 0.51%
Median Sales Price: $400,600
Florida
The Sunshine State’s housing market is notoriously complex, but one trend is clear: home values are appreciating, and builders are working hard to meet demand as new residents continue to move in. Property taxes, while not the lowest, help offset the state’s ongoing affordability challenges. Some trends are more concerning, including rising foreclosures and an increasing number of underwater mortgages.
Furthermore, the state is grappling with a severe insurance crisis that has significant implications for home values and affordability. Florida faces very real climate risks that directly threaten its housing stock. However, for now, the Florida real estate market is maintaining a delicate balance, which is helping to power the nation’s strongest overall economy.
2025 Economy Rank: No. 1 (Top States Grade: A+)
Price Appreciation: 7.37%
Inventory (July): 4 months
Affordability Score: 0.46
Effective Property Tax Rate: 0.77%
Median Sales Price: $433,000
Navigating today’s housing market requires careful consideration of these state-level dynamics. Whether you’re looking to buy your first home, upgrade to a new property, or sell your current residence, understanding where the best opportunities lie is crucial.
Are you ready to explore the housing market in one of these top states? Contact a local real estate expert today to get personalized guidance and find the perfect property for your needs.
