These Are America’s 10 Best States for Buying and Selling a Home in 2025, With a Big Caveat at No. 1
High mortgage rates and a stubbornly tight housing supply continue to challenge both homebuyers and sellers across the United States. However, the severity of this residential real estate crisis varies significantly from state to state. In some of the top-ranked states, escalating climate risks are adding another layer of complexity to the market.
When companies evaluate where to relocate or expand, the local residential real estate market is a critical factor. They need to ensure that prospective employees can find affordable housing that also serves as a sound investment. Consequently, the housing market plays a vital role in assessing a state’s overall business competitiveness.
In our annual America’s Top States for Business study, we evaluate states based on the crucial balance between housing affordability and value. Our analysis incorporates several key metrics: price appreciation and seller gains, affordability levels, housing inventory, and new housing construction starts. We also monitor warning signs of market stress, such as foreclosure activity and the prevalence of underwater mortgages.
While individual priorities differ for every buyer and seller, the following ten states offer housing markets that could provide the best value in 2025.
Delaware
Aerial photo of residential upscale homes in Brookside, Delaware, USA
Felixmizioznikov | Istock | Getty Images
Housing affordability in The First State is approximately average, but a significant advantage for Delaware homeowners is the exceptionally low property tax burden. According to real estate data firm ATTOM, Delaware homeowners pay an effective tax rate of less than half a percent, which ranks as 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 rare and attractive combination of housing affordability, including low property taxes, coupled with healthy price appreciation. Although housing inventory remains tight, homebuyers in Indiana are still finding suitable properties at competitive 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.
A sign outside a home for sale in Atlanta, Georgia, U.S.
Elijah Nouvelage | Bloomberg | Getty Images
Home inventories are on the rise in The Peach State, which is a positive development for affordability. Homebuilders have also been quite active in the market. Despite this, price appreciation continues to show healthy momentum.
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 downstairs unit to families of all ages.
Cynthia Holzapfel gestures while describing the unit downstairs of her home in Summertown, Tennessee on June 15, 2024. Cynthia Holzapfel rents out her downstairs unit to families of all ages.
Kevin Wurm | The Washington Post | Getty Images
Despite having some of the lowest property taxes in the country, housing affordability is becoming a challenge in The Volunteer State. A new state law includes incentives aimed at encouraging the development of more affordable multifamily housing options. In the single-family market, inventory levels have begun to increase, which has helped moderate price gains and could attract more buyers to 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 Silver State’s housing market is known for its historical volatility, and 2025 is proving to be no exception. However, housing inventory levels are manageable, and construction activity remains robust. While housing affordability continues to be a concern, home price growth has slowed—which benefits buyers but not sellers. Property taxes are low, and homeowners have generally maintained healthy equity, 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.
New Jersey shore town island community, on Barnegat Bay.
Johnrob | E+ | Getty Images
Home prices in The Garden State saw significant appreciation last year as the housing market remained highly active. While affordability could certainly be better, it is not entirely out of sync with median incomes. However, New Jersey faces 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+)
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 exceptionally busy in The Tar Heel State, with the second-highest level of housing starts in the nation last year, surpassed only by fast-growing Alabama. Despite this construction activity, inventory levels remain tight enough to support strong price appreciation. Property taxes are reasonable, especially considering the state’s rapid population growth.
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.
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 achieve solid gains in The Grand Canyon State, even as home inventory levels gradually increase. Construction activity is robust, and homeowners have built substantial equity in their properties. Property taxes are low, but this comes at the cost of 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.
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 compared to many other markets. This price growth is likely encouraging more construction activity, which is contributing to rising inventory levels. Property taxes are low. However, homeowners’ equity could be stronger, and foreclosure rates are 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.
A view of Duval Street in Key West, United States on May 7, 2024.
Jakub Porzycki | Nurphoto | Getty Images
The Sunshine State’s housing market is notoriously complex to analyze, but one thing is clear: home values are appreciating, and homebuilders are working diligently
