These are America’s 10 Best States for Buying and Selling a Home in 2024, with a Big Caveat at No. 1
The U.S. housing market is in a full-blown crisis, with a severe shortage of homes for sale, even fewer affordable options, and mortgage rates that refuse to budge. But the severity of this crisis isn’t uniform across the country; it varies dramatically from one state to the next. This disparity is why companies carefully evaluate local housing markets when deciding where to establish roots, as prospective employees need accessible, investment-worthy places to live. The housing market, therefore, plays a crucial role in a state’s overall business competitiveness.
CNBC’s annual “America’s Top States for Business” study evaluates states based on the delicate balance between housing affordability and value. Our methodology considers price appreciation, seller gains, inventory levels, housing starts, and signs of financial distress such as foreclosure activity and underwater mortgages.
While every buyer and seller has unique priorities, these ten states offer the most compelling opportunities in the current market.
Delaware
Delaware’s housing affordability is right around the national average, but the state pulls ahead with exceptionally low property taxes. Homeowners in The First State pay an effective tax rate of less than half a percent, the fourth-lowest in the nation.
2024 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 rare and attractive combination of affordability—driven by low property taxes—and healthy price appreciation. Despite tight inventory, homebuyers in Indiana are finding value in a competitive market.
2024 Economy Rank: No. 19 (Top States Grade: C)\nAppreciation: 8.02%\nInventory (July): 2 months\nAffordability Score: 0.81\nEffective Property Tax Rate: 0.86%\nMedian Sales Price: $265,300
Georgia\nThe Peach State is seeing improving home inventories, which is a positive development for affordability. Homebuilders have been active, yet prices continue to climb at a healthy clip.\n\n2024 Economy Rank: No. 7 (Top States Grade: B)\nAppreciation: 7.16%\nInventory (July): 3 months\nAffordability Score: 0.59\nEffective Property Tax Rate: 0.82%\nMedian Sales Price: $385,600\n\n7. Tennessee\nDespite boasting some of the lowest property taxes in the country, Tennessee is grappling with housing affordability challenges. A new state law introduces incentives for more affordable multi-family housing. In the single-family market, inventory growth has helped moderate price increases, potentially attracting more buyers.\n\n2024 Economy Rank: No. 3 (Top States Grade: B+)\nAppreciation: 6.24%\nInventory (July): 3 months\nAffordability Score: 0.49\nEffective Property Tax Rate: 0.44%\nMedian Sales Price: $393,000\n\n6. Nevada\nThe Silver State’s housing market is historically volatile, and 2024 is proving no different. However, inventory levels are manageable, and new construction is robust. While affordability remains a concern, prices have cooled—a mixed blessing for buyers and sellers alike. Property taxes are low, and home equity levels are solid despite a recent uptick in foreclosures.\n\n2024 Economy Rank: No. 8 (Top States Grade: B)\nAppreciation: 3.39%\nInventory (July): 2 months\nAffordability Score: 0.43%\nEffective Property Tax Rate: 0.48%\nMedian Sales Price: $458,300\n\n5. New Jersey\nHome prices in The Garden State surged last year, maintaining the market’s momentum. Affordability could be better, but it remains somewhat aligned with median incomes. However, New Jersey faces the nation’s second-highest property taxes (after Illinois) and a high foreclosure rate.\n\n2024 Economy Rank: No. 17 (Top States Grade: C+)\nAppreciation: 11.38%\nInventory (July): 2 months\nAffordability Score: 0.56\nEffective Property Tax Rate: 1.64%\nMedian Sales Price: $532,400\n\n4. North Carolina\nHomebuilders are exceptionally active in The Tar Heel State, with the second-highest number of housing starts in 2023, trailing only the rapidly expanding Alabama. Nevertheless, inventory remains tight, fueling strong price appreciation. Property taxes are reasonable, particularly given the state’s rapid growth.\n\n2024 Economy Rank: No. 4 (Top States Grade: B+)\nAppreciation: 6.98%\nInventory (July): 2 months\nAffordability Score: 0.52\nEffective Property Tax Rate: 0.6%\nMedian Sales Price: $383,700\n\n3. Arizona\nSellers in The Grand Canyon State continue to achieve solid gains as home inventory expands. Construction activity is vigorous, and homeowners maintain healthy equity. Property taxes are low, but so is housing affordability.\n\n2024 Economy Rank: No. 5 (Top States Grade: B+)\nAppreciation: 6.63%\nInventory (July): 3 months\nAffordability Score: 0.44\nEffective Property Tax Rate: 0.41%\nMedian Sales Price: $450,800\n\n2. South Carolina\nHome prices are climbing in The Palmetto State, yet housing remains relatively affordable. This price appreciation is likely spurring new construction, contributing to rising inventory levels. Property taxes are low. However, home equity could be stronger, and foreclosure rates are somewhat elevated.\n\n2024 Economy Rank: No. 12 (Top States Grade: B-)\nAppreciation: 9.42%\nInventory (July): 3 months\nAffordability Score: 0.61\nEffective Property Tax Rate: 0.5%\nMedian Sales Price: $387,700\n\n1. Florida\nThe Sunshine State’s housing market is notoriously complex, but one thing is clear: home values are rising, and builders are working hard to meet demand as new residents flock to the state. Property taxes, while not the lowest, help offset the state’s persistent affordability issues. Some trends are more concerning, such as increasing foreclosures and a growing number of underwater mortgages.\n\nFurthermore, Florida is grappling with a severe insurance crisis that has significant implications for home values and affordability. The state’s vulnerability to climate risks, including threats to its housing stock, is undeniable. However, for the time being, the Florida real estate market is maintaining a precarious balance, which is helping to fuel the nation’s most robust economy.\n\n2024 Economy Rank: No. 1 (Top States Grade: A+)\nAppreciation: 6.85%\nInventory (July): 4 months\nAffordability Score: 0.44\nEffective Property Tax Rate: 0.76%\nMedian Sales Price: $420,100\n\nNavigating the current housing market requires a clear understanding of both local opportunities and national trends. Whether you’re buying, selling, or investing, the right strategy can make all the difference in achieving your real estate goals.\n\nReady to explore your options in these top-ranking states or need expert guidance on the current market? Contact us today for a personalized consultation and take the next step toward your real estate success.”
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