These Are America’s 10 Best States for Buying and Selling a Home in 2025, With a Big Caveat at No. 1
The U.S. housing market is in a state of flux, with high interest rates and inventory shortages continuing to challenge both buyers and sellers. However, the severity of this crisis varies significantly across the country, and some states are proving more resilient than others. When companies decide where to expand or relocate, they closely evaluate the local real estate market to ensure their employees can find affordable housing. This makes the housing market a critical factor in a state’s overall economic competitiveness.
CNBC’s annual America’s Top States for Business study includes the housing market as a key component of the Economy category. This year, the rankings evaluate states based on the delicate balance between affordability and value. We analyze price appreciation and seller gains, alongside affordability metrics, inventory levels, and housing starts. Additionally, we look for warning signs of market stress, such as foreclosure activity and underwater mortgages.
While every individual’s priorities differ, the states listed below offer housing markets that could provide the best return on investment in 2025.
Delaware
The First State offers housing affordability that is right around the national average. However, what truly enhances the value of a Delaware home purchase is the exceptionally low property tax burden. Homeowners in Delaware pay an effective tax rate of less than half a percent, placing the state fourth lowest in the nation for property taxes. This low carrying cost can make a significant difference in long-term affordability, even if median home prices are comparable to other regions.
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
The Hoosier State presents a compelling combination of affordability, including notably low property taxes, and healthy price appreciation. While inventory levels remain tight, homebuyers in Indiana are still finding properties that meet their needs at attractive price points. This balance of stable pricing and low ongoing costs makes Indiana a strong contender for those looking to enter the market without stretching their budgets too thin. The state’s robust manufacturing sector and growing logistics industry also contribute to job stability, further supporting the housing market.
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
The Peach State is experiencing a welcome increase in home inventories, which is helping to improve affordability. Homebuilders have been active, adding new supply to the market. Despite this increased construction, price appreciation has remained healthy, indicating sustained demand. Georgia’s strategic location and growing economy, particularly in the Atlanta metropolitan area, continue to attract new residents and businesses, supporting property values across the state.
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
Despite some of the lowest property taxes in the nation, affordability remains a challenge in the Volunteer State. A new legislative initiative includes incentives aimed at increasing the supply of affordable multifamily housing. In the single-family market, inventory levels have begun to rise, which has helped moderate price gains and could bring more buyers into the market. Tennessee’s growing job market and business-friendly environment continue to drive demand for housing.
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
The Silver State’s housing market is known for its volatility, and 2025 is proving to be no exception. However, inventory levels are manageable, and housing construction is active, particularly in the Las Vegas area. Affordability continues to be a concern, but price moderation is occurring, which benefits buyers at the expense of sellers. Property taxes are low, and home equity levels remain healthy despite a recent uptick in foreclosure activity. The state’s strong tourism and business-friendly climate continue to support the market.
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
Home prices in the Garden State surged last year, reflecting a persistently active housing market. While affordability could be better, it remains relatively aligned with median incomes. However, New Jersey faces the second-highest property taxes in the nation, trailing only Illinois, and a relatively high foreclosure rate. These factors can put a strain on homeowners, even in a strong market. The state’s proximity to major economic centers like New York and Philadelphia continues to drive demand.
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
Homebuilders are exceptionally busy in the Tar Heel State, with the second-highest level of housing starts in the nation, surpassed only by fast-growing Alabama. Despite this construction boom, inventory remains tight enough to keep price appreciation strong. Property taxes are reasonable, especially considering the state’s rapid growth and the infrastructure demands that come with it. North Carolina’s diverse economy and quality of life continue to attract new residents.
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
Sellers in the Grand Canyon State are continuing to see solid gains, even as home inventory builds. Construction activity is robust, and home equity levels are healthy. Property taxes are low, but this is offset by lower housing affordability. Arizona’s Sun Belt location and growing job market, particularly in the Phoenix area, continue to drive demand. The state’s climate and lifestyle appeal to retirees and remote workers alike.
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
Home prices are on the rise in the Palmetto State, yet housing remains relatively affordable compared to many other parts of the country. This price appreciation may be spurring additional construction, which is helping to increase inventory levels. Property taxes are low, but home equity could be stronger, and foreclosure rates are on the higher side. South Carolina’s growing economy and coastal appeal continue to attract new residents and businesses.
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
The Sunshine State’s housing market is notoriously complex, but several key trends are evident in 2025. Home values are appreciating, and homebuilders are working hard to meet the demand from new residents flocking to the state. Property taxes, while not the lowest, help to offset some of the state’s ongoing affordability challenges. More concerning trends include rising foreclosure rates and a growing number of underwater mortgages.
Furthermore, Florida is grappling with a severe insurance crisis that is having a significant impact on home values and affordability. The state’s exposure to climate risks, including hurricanes and rising sea levels, poses a long-term challenge to its housing stock. Despite these issues, the Florida real estate market is currently striking a delicate balance, which is helping to fuel the nation’s strongest overall economy. For now, the combination of economic growth, population influx, and lifestyle appeal makes Florida the top state for buying and selling a home, even with the inherent risks.
2025 Economy Rank: No. 1 (Top States Grade: A+)
Appreciation: 6.85%
Inventory (July): 4 months
Affordability Score: 0.44
Effective Property Tax Rate: 0.76%
Median Sales Price: $420,100
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