These are America’s 10 Best States for Buying and Selling a Home in 2025
Key Points
High interest rates and a tight housing supply are creating significant challenges for both homebuyers and sellers across the United States.
The severity of this residential real estate crisis varies considerably from state to state, and some of the top-ranking states are also facing increasing climate-related risks.
Because companies carefully consider the residential real estate market when choosing locations, CNBC incorporates housing market data into the annual America’s Top States for Business study.
America is currently navigating a challenging housing crisis. Home inventory levels are low, the supply of affordable housing is even more constrained, and persistently high mortgage rates are compounding these difficulties. However, the impact of this crisis is not uniform, with conditions varying significantly from one state to another.
The state of the local housing market is a critical factor for businesses when deciding where to establish operations. Prospective employees need to be able to find housing that is both affordable and offers the potential for value appreciation, making the housing market an important component of a state’s overall business competitiveness.
CNBC evaluates the housing market as part of the Economy category in America’s Top States for Business, its annual ranking of all 50 states. The methodology for this year’s rankings focuses on the balance between affordability and value. The assessment considers price appreciation and seller gains, alongside metrics such as affordability, inventory levels, and housing starts. Additionally, the analysis looks for indicators of market stress, including foreclosure activity and the prevalence of underwater mortgages.
While individual priorities vary among buyers and sellers, the housing markets in the following ten states could offer the most favorable conditions.
Delaware
Aerial photo residential upscale homes in Brookside Delaware USA
Felixmizioznikov | Istock | Getty Images
Housing affordability in The First State is generally on par with the national average, but the value of a Delaware housing dollar is enhanced by notably low property taxes. According to real estate data firm ATTOM, Delaware homeowners face an effective tax rate of less than half a percent, which is the fourth-lowest in the nation.
2025 Economy Rank: No. 10 (Top States Grade: B-)
Appreciation: 4.73%
Inventory (July): 2 months
Affordability score (0 to 2, with 2 being most affordable): 0.56
Effective property tax rate: 0.43%
Median sales price: $360,700
Indiana
Exterior of ranch houses in a neighborhood in Indiana, Midwest, USA
Wanderluster | Istock | Getty Images
The Hoosier State presents a relatively rare combination of affordability, including low property taxes, and healthy price appreciation. Although inventory levels remain tight, homebuyers in Indiana can still find suitable properties at attractive prices.
2025 Economy Rank: No. 19 (Top States Grade: C)
Appreciation: 8.02%
Inventory (July): 2 months
Affordability score: 0.81
Effective property tax rate: 0.86%
Median sales price: $265,300
Georgia
A sign outside a home for sale in Atlanta, Georgia, U.S.
Elijah Nouvelage | Bloomberg | Getty Images
Home inventories are expanding in The Peach State, which is a positive development for affordability. Homebuilders have also been active in the market. Despite this, price appreciation continues to demonstrate strength.
2025 Economy Rank: No. 7 (Top States Grade: B)
Appreciation: 7.16%
Inventory (July): 3 months
Affordability score: 0.59
Effective property tax rate: 0.82%
Median sales price: $385,600
Tennessee
Cynthia Holzapfel gestures while describing the unit downstairs of her home in Summertown, Tennessee on June 15, 2024. Cynthia Holzapfel rents out her down stairs unit to families of all ages.
Kevin Wurm | The Washington Post | Getty Images
Despite having some of the lowest property taxes in the country, affordability presents a challenge in The Volunteer State. A new state law includes incentives aimed at promoting the development of more affordable multifamily housing. In the single-family market, inventory has begun to increase, which has helped to moderate price gains and may encourage more buyers to enter the market.
2025 Economy Rank: No. 3 (Top States Grade: B+)
Appreciation: 6.24%
Inventory (July): 3 months
Affordability score: 0.49
Effective property tax rate: 0.44%
Median sales price: $393,000
Nevada
A contractor works on a home under construction in the Versilia at Southern Highlands master-planned community in this aerial photograph taken over Las Vegas, Nevada, U.S.
Roger Kisby | Bloomberg | Getty Images
The housing market in The Silver State is known for its historical volatility, and the current year is proving to be no exception. However, inventory levels are manageable, and construction activity is robust. While affordability remains a concern, price moderation is occurring—a positive for buyers but less so for sellers. Property taxes are low, and home equity levels are healthy, despite a recent uptick in foreclosure activity.
2025 Economy Rank: No. 8 (Top States Grade: B)
Appreciation: 3.39%
Inventory (July): 2 months
Affordability score: 0.43%
Effective property tax rate: 0.48%
Median sales price: $458,300
New Jersey
New Jersey shore town island community, on Barnegat Bay.
Johnrob | E+ | Getty Images
Home prices experienced a significant surge in The Garden State last year, as the housing market continues to be very active. Affordability could be improved, but it is not entirely out of sync with median incomes. However, New Jersey has the second-highest property taxes in the nation, surpassed only by Illinois, and also contends with a high foreclosure rate.
2025 Economy Rank: No. 17 (Top States Grade: C+)
Appreciation: 11.38%
Inventory (July): 2 months
Affordability score: 0.56
Effective property tax rate: 1.64%
Median sales price: $532,400
North Carolina
Workers build homes in Lillington, North Carolina, U.S.
Allison Joyce | Bloomberg | Getty Images
Homebuilders are particularly active in The Tar Heel State, which recorded the second-highest number of housing starts last year, trailing only the rapidly growing state of Alabama. Nonetheless, inventory levels remain sufficiently tight to support strong price appreciation. Property taxes are reasonable, especially when considering the state’s rapid growth trajectory.
2025 Economy Rank: No. 4 (Top States Grade: B+)
Appreciation: 6.98%
Inventory (July): 2 months
Affordability score: 0.52
Effective property tax rate: 0.6%
Median sales price: $383,700
Arizona
YUMA, AZ – MARCH 9: A for sale sign outside a mobile home at Coyote Ranch in Yuma, Arizona on Friday, March 9, 2024.
The Washington Post | Getty Images
Sellers continue to realize solid gains in The Grand Canyon State, even as the inventory of homes for sale expands. Construction activity is robust, and homeowners have substantial equity. Property taxes are low, but this is accompanied by limited housing affordability.
2025 Economy Rank: No. 5 (Top States Grade: B+)
Appreciation: 6.63%
Inventory (July): 3 months
Affordability score: 0.44
Effective property tax rate: 0.41%
Median sales price: $450,800
South Carolina
Homes in the Nexton community in Summerville, South Carolina, U.S.
Sam Wolfe | Bloomberg | Getty Images
Home prices are appreciating in The Palmetto State, yet housing remains relatively affordable. This price appreciation may be stimulating increased construction activity, which is one factor contributing to rising inventory levels. Property taxes are low. However, home equity levels could be stronger, and the rate of foreclosures is on the higher side.
2025 Economy Rank: No. 12 (Top States Grade: B-)
Appreciation: 9.42%
Inventory (July): 3 months
Affordability score: 0.61
Effective property tax rate: 0.5%
Median sales price: $387,700
Florida
A view of Duval street in Key West, United States on May 7, 2024.
Jakub Porzycki | Nurphoto | Getty Images
The housing market in The Sunshine State is known for being somewhat complex to analyze, but one clear trend is that home values are appreciating, and builders are actively working to meet demand as new residents continue to move into the state. Property taxes, while not the lowest, help to offset some of the state’s persistent affordability challenges. Some emerging trends are more concerning, such as the rise in foreclosures and the increasing number of underwater mortgages.
Furthermore, the state is grappling with a significant insurance crisis that has substantial implications for home values and affordability. The risks posed by
