These Are America’s 10 Best States for Buying and Selling a Home in 2024, With a Big Caveat at No. 1
High interest rates and a tight housing supply are creating significant headwinds for both homebuyers and sellers across the United States. However, the severity of this residential real estate crisis varies dramatically from state to state. Furthermore, in some of the top-ranked states for housing market competitiveness, homeowners are increasingly grappling with rising climate risks. Recognizing the importance of housing affordability and value, CNBC has incorporated the residential real estate market into its annual America’s Top States for Business study.
The U.S. is currently navigating a challenging housing market characterized by persistently low inventory and elevated mortgage rates, which have compounded affordability issues for potential buyers. Despite these broad challenges, the dynamics of the housing market differ substantially across state lines. This variation is a critical factor for businesses when making decisions about relocation or expansion, as they seek locations where prospective employees can secure reasonably priced housing that also serves as a sound investment. Consequently, the health of the housing market is a significant contributor to a state’s overall business competitiveness.
In the latest iteration of CNBC’s America’s Top States for Business rankings, the housing market is evaluated within the Economy category. The current methodology assesses states based on a comprehensive balance of affordability and value. This evaluation includes key metrics such as home price appreciation, seller gains, inventory levels, housing starts, and overall affordability indices. Additionally, the analysis screens for indicators of market stress, including foreclosure rates and the prevalence of underwater mortgages.
While individual priorities will always influence purchasing decisions, the housing markets in the following ten states are positioned to offer the most favorable conditions for those looking to buy or sell property in the current climate.
Delaware
Delaware, often referred to as “The First State,” presents a housing market where affordability is roughly in line with the national average. However, the financial appeal of the Delaware housing market is significantly enhanced by exceptionally low property taxes. According to data from real estate analytics firm ATTOM, Delaware homeowners face an effective property tax rate of less than half a percent, ranking as the fourth-lowest rate in the entire country.
For the 2024 rankings, Delaware secured the No. 10 position in the Economy category, earning a Top States grade of B-. The state’s performance is supported by a solid price appreciation rate of 4.73%. Inventory levels are tight, with approximately two months of supply available as of July. The state’s affordability score, calculated on a scale where 2 represents the highest level of affordability, stands at 0.56. This score, combined with an effective property tax rate of 0.43% and a median sales price of $360,700, contributes to its competitive position.
Indiana
The Hoosier State, Indiana, offers a compelling combination of housing affordability—bolstered by low property taxes—and healthy price appreciation. Despite inventory constraints that continue to challenge the market, homebuyers in Indiana are finding desirable properties at attractive price points.
Indiana is ranked No. 19 in the Economy category for 2024, with a Top States grade of C. The state’s housing market has experienced a notable appreciation rate of 8.02%. Inventory levels, similar to Delaware, are tight at two months as of July. Indiana scores a relatively strong 0.81 on the affordability index. With an effective property tax rate of 0.86% and a median sales price of $265,300, the state represents one of the more affordable Midwestern markets for prospective homeowners.
Georgia
In Georgia, known as “The Peach State,” home inventory levels are showing positive signs of expansion, which is beneficial for affordability. The state has also seen robust activity from homebuilders, contributing to new supply. Despite this increased inventory, price appreciation remains strong, indicating continued demand in the market.
Georgia ranks No. 7 in the Economy category for 2024, achieving a Top States grade of B. The state’s housing market has demonstrated price appreciation of 7.16%. Inventory has increased to three months as of July. Georgia’s affordability score is 0.59, supported by an effective property tax rate of 0.82% and a median sales price of $385,600. This balance of growth and affordability positions Georgia favorably for both buyers and sellers.
Tennessee
Despite implementing some of the nation’s lowest property tax rates, Tennessee faces affordability challenges. A recent legislative measure has introduced incentives aimed at encouraging the development of more affordable multifamily housing options. In the single-family home market, rising inventory levels have helped to moderate price gains, potentially drawing more buyers into the market.
Tennessee is recognized as the No. 3 state in the Economy category for 2024, earning a Top States grade of B+. Price appreciation in the state has been solid at 6.24%. As of July, inventory stands at three months. Tennessee’s affordability score is 0.49, which is tempered by its median sales price of $393,000 and an effective property tax rate of 0.44%.
Nevada
The housing market in Nevada, “The Silver State,” is historically characterized by volatility, and the current year has proven to be no exception. Nevertheless, inventory levels are being managed, and construction activity remains brisk. While affordability continues to be a pressing issue, price growth has decelerated, which is advantageous for buyers but less so for sellers. Property taxes in Nevada are low. Home equity remains healthy, notwithstanding a modest uptick in foreclosure activity.
Nevada is ranked No. 8 in the Economy category for 2024, with a Top States grade of B. The state’s price appreciation rate is 3.39%. Inventory levels are tight at two months as of July. Nevada’s affordability score is 0.43%. With an effective property tax rate of 0.48% and a median sales price of $458,300, the state balances its affordability challenges with other positive market indicators.
New Jersey
Home prices in New Jersey, “The Garden State,” surged last year, reflecting the continued strength of the housing market. Affordability could be improved, though it is not entirely misaligned with median incomes. However, New Jersey levies the second-highest property taxes in the nation, surpassed only by Illinois, and the state also contends with a relatively high foreclosure rate.
New Jersey is ranked No. 17 in the Economy category for 2024, receiving a Top States grade of C+. The state has experienced substantial price appreciation of 11.38%. Inventory levels are low at two months as of July. The affordability score is 0.56. This score is offset by the state’s high effective property tax rate of 1.64% and a median sales price of $532,400, placing it among the pricier East Coast markets.
North Carolina
Homebuilders are highly active in North Carolina, “The Tar Heel State,” which recorded the second-highest volume of housing starts nationally in the prior year, trailing only the rapidly expanding state of Alabama. Despite this construction boom, inventory remains sufficiently tight to sustain strong price appreciation. Property taxes are considered reasonable, particularly in light of the state’s rapid population growth.
North Carolina is positioned at No. 4 in the Economy category for 2024, earning a Top States grade of B+. Price appreciation stands at 6.98%. Inventory is tight at two months as of July. The state’s affordability score is 0.52. With an effective property tax rate of 0.6% and a median sales price of $383,700, North Carolina offers a compelling value proposition for homebuyers.
Arizona
In Arizona, “The Grand Canyon State,” sellers continue to realize solid gains even as home inventory expands. Construction activity is robust, and homeowners maintain healthy levels of equity. Property taxes are low, yet housing affordability remains a significant concern.
Arizona ranks No. 5 in the Economy category for 2024, achieving a Top States grade of B+. The state has seen price appreciation of 6.63%. Inventory has grown to three months as of July. Arizona’s affordability score is 0.44. This score, combined with an effective property tax rate of 0.41% and a median sales price of $450,800, highlights the trade-off between affordability and other market strengths.
South Carolina
Home prices are on the rise in South Carolina, “The Palmetto State,” yet the housing market remains comparatively affordable. This price appreciation may be stimulating increased construction activity, which is contributing to the rise in inventory levels. Property taxes are low. However, the state’s home equity levels could be stronger, and foreclosure rates are somewhat elevated.
South Carolina is ranked No. 12 in the Economy category for 2024, with a Top States grade of B-. The state has experienced strong price appreciation of 9.42%. Inventory has increased to three months as of July. South Carolina’s affordability score is 0.61. With an effective property tax rate of 0.5% and a median sales price of $387,700, the state offers a favorable balance of affordability and price growth.
Florida
The housing market in Florida, “The Sunshine State,” is notoriously complex to evaluate, but certain trends are clear: home values are appreciating, and homebuilders are working diligently to meet demand as new residents continue to
