Here are the 10 best states in the US for buying and selling a home in 2024, with a significant caveat regarding the top position.
High interest rates and a persistent shortage of housing inventory are creating significant challenges for both prospective homebuyers and those looking to sell. However, the severity of this residential real estate crisis varies considerably from one state to another. Furthermore, in some of the top-ranked states, buyers and sellers must also contend with increasing climate-related risks.
When companies are making critical decisions about where to establish or relocate their operations, they closely evaluate the local residential real estate market. This evaluation is crucial because potential employees need to find housing that is not only affordable but also represents a sound long-term investment. Consequently, the housing market plays an important role in determining a state’s overall business competitiveness.
In the annual “America’s Top States for Business” study, the housing market is considered as a key component of the Economy category. The methodology for this year’s rankings focuses on the critical balance between housing affordability and overall value. This analysis takes into account various factors, including price appreciation, the financial gains realized by sellers, housing affordability levels, inventory availability, and the rate of new housing construction. Additionally, the assessment looks for warning signs of market stress, such as foreclosure activity and the percentage of homeowners with underwater mortgages (where the loan balance exceeds the home’s value).
While individual priorities differ for every buyer and seller, the housing markets in these ten states offer the most favorable conditions for maximizing value.
Delaware
Housing affordability in The First State is generally on par with the national average. However, what significantly enhances the value of your housing dollar in Delaware are the exceptionally low property taxes. According to real estate data firm ATTOM, Delaware homeowners face an effective tax rate of less than half a percent, which ranks as the fourth-lowest in the entire country.
2024 Economy Rank: No. 10 (Top States Grade: B-)
Price Appreciation: 4.73%
Inventory (July): 2 months
Affordability Score (0 to 2, with 2 being the most affordable): 0.56
Effective Property Tax Rate: 0.43%
Median Sales Price: $360,700
Indiana
The Hoosier State presents a rare and appealing combination of affordability—bolstered by notably low property taxes—and healthy price appreciation. Although the housing inventory remains tight, homebuyers in Indiana are still managing to find properties that meet their needs at attractive price points.
2024 Economy Rank: No. 19 (Top States Grade: C)\
Price Appreciation: 8.02%\
Inventory (July): 2 months\
Affordability Score: 0.81\
Effective Property Tax Rate: 0.86%\
Median Sales Price: $265,300
Georgia
Home inventories are showing signs of improvement in The Peach State, which is a positive development for affordability. Homebuilders have also been quite active in the market. Despite these positive trends, price appreciation continues to demonstrate healthy growth.
2024 Economy Rank: No. 7 (Top States Grade: B)\
Price Appreciation: 7.16%\
Inventory (July): 3 months\
Affordability Score: 0.59\
Effective Property Tax Rate: 0.82%\
Median Sales Price: $385,600
Tennessee
Despite having some of the lowest property taxes in the nation, affordability is becoming a challenge in The Volunteer State. A recently enacted law introduces incentives aimed at encouraging the development of more affordable multifamily housing options. In the single-family market, inventory levels have begun to rise, which has helped to moderate the pace of price increases and may attract more buyers to the market.
2024 Economy Rank: No. 3 (Top States Grade: B+)\
Price Appreciation: 6.24%\
Inventory (July): 3 months\
Affordability Score: 0.49\
Effective Property Tax Rate: 0.44%\
Median Sales Price: $393,000
Nevada
The housing market in The Silver State is historically known for its volatility, and the current year is proving to be no different. Nevertheless, the inventory situation is manageable, and housing construction activity is robust. While affordability continues to be a concern, home price growth has slowed—which is beneficial for buyers but less so for sellers. Property taxes are low, and despite a recent uptick in foreclosure activity, homeowners generally maintain healthy levels of home equity.
2024 Economy Rank: No. 8 (Top States Grade: B)\
Price Appreciation: 3.39%\
Inventory (July): 2 months\
Affordability Score: 0.43%\
Effective Property Tax Rate: 0.48%\
Median Sales Price: $458,300
New Jersey
Home prices experienced a significant surge in The Garden State last year, reflecting the continued dynamism of its housing market. While affordability could certainly be improved, current levels are not entirely out of sync with median incomes. However, New Jersey stands out with the second-highest property taxes in the country, trailing only Illinois, and also faces a relatively high foreclosure rate.
2024 Economy Rank: No. 17 (Top States Grade: C+)\
Price Appreciation: 11.38%\
Inventory (July): 2 months\
Affordability Score: 0.56\
Effective Property Tax Rate: 1.64%\
Median Sales Price: $532,400
North Carolina
Homebuilders are particularly active in The Tar Heel State, which recorded the second-highest number of housing starts last year, surpassed only by the rapidly growing state of Alabama. Despite this construction boom, the housing supply remains tight enough to sustain strong price appreciation. Property taxes are reasonable, especially when viewed in the context of the state’s rapid population growth.
2024 Economy Rank: No. 4 (Top States Grade: B+)\
Price Appreciation: 6.98%\
Inventory (July): 2 months\
Affordability Score: 0.52\
Effective Property Tax Rate: 0.6%\
Median Sales Price: $383,700
Arizona
Sellers continue to realize solid gains in The Grand Canyon State, even as the inventory of available homes expands. Construction activity is robust, and homeowners generally possess healthy levels of equity. Property taxes are low, but this comes at the cost of housing affordability.
2024 Economy Rank: No. 5 (Top States Grade: B+)\
Price Appreciation: 6.63%\
Inventory (July): 3 months\
Affordability Score: 0.44\
Effective Property Tax Rate: 0.41%\
Median Sales Price: $450,800
South Carolina
Home prices are on the rise in The Palmetto State, yet housing remains relatively affordable compared to many other areas. This price appreciation is likely stimulating increased construction activity, which in turn is contributing to higher inventory levels. Property taxes are low. However, the state’s home equity levels could be stronger, and the rate of foreclosures is somewhat elevated.
2024 Economy Rank: No. 12 (Top States Grade: B-)\
Price Appreciation: 9.42%\
Inventory (July): 3 months\
Affordability Score: 0.61\
Effective Property Tax Rate: 0.5%\
Median Sales Price: $387,700
Florida
The Sunshine State’s housing market is famously complex to analyze, but one trend is clear: home values are appreciating, and homebuilders are working diligently to meet the demand driven by an influx of new residents. Property taxes, while not the lowest, help to offset some of the state’s persistent affordability challenges. Certain emerging trends warrant closer attention, such as rising foreclosure rates and an increasing number of homeowners with underwater mortgages.
Crucially, Florida is grappling with a significant insurance crisis that has profound implications for home values and overall affordability. The state also faces very real climate-related risks that directly impact its housing stock. Nonetheless, for the time being, the Florida real estate market is managing to strike a reasonable, albeit delicate, balance. This stability is a key factor powering what is currently the nation’s most robust overall economy.
2024 Economy Rank: No. 1 (Top States Grade: A+)\
Price Appreciation: 6.
