America’s 10 Best States for Buying and Selling a Home in 2025
Key Points
High interest rates and tight housing supply continue to challenge both buyers and sellers.
The severity of the residential real estate crisis varies significantly by state, with some top-ranked states also facing increasing climate risks.
Because companies evaluate the residential real estate market when choosing locations, CNBC incorporates it into its annual America’s Top States for Business study.
The American housing market is currently in a crisis. Home inventory is scarce, affordable housing is even scarcer, and stubbornly high mortgage rates exacerbate the problem. However, the extent of this crisis differs across states.
Companies consider the local residential real estate market when deciding where to relocate because they want their prospective employees to find affordable homes that are also good investments. This makes the housing market a critical factor in a state’s business competitiveness.
CNBC includes the housing market in the Economy category of America’s Top States for Business, its annual ranking of all 50 states. This year’s methodology grades states on the balance between affordability and value. We assess price appreciation and seller gains, alongside affordability, inventory levels, and housing starts. We also look for indicators of stress, such as foreclosure activity and underwater mortgages.
While every buyer and seller has unique priorities, the housing markets in these ten states may offer the best value for your money.
Delaware
Housing affordability in The First State is average, but homeowners benefit from very low property taxes. According to real estate data firm ATTOM, Delaware homeowners pay an effective tax rate of less than half a percent, the fourth-lowest in the country.
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 rare combination of affordability, including low property taxes, and healthy price appreciation. Inventory remains tight, but Indiana homebuyers are still finding desirable properties at attractive 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
Home inventories are rising in The Peach State, which is beneficial for affordability. Homebuilders have also been active. Nonetheless, price appreciation remains robust.
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 having some of the lowest property taxes in the nation, affordability is a challenge in The Volunteer State. A new law includes incentives for more affordable multifamily housing. In the single-family market, inventory has begun to increase, moderating price gains and potentially attracting more buyers.
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 historically volatile, and this year is no exception. However, inventory levels are manageable, and housing construction is active. While affordability remains a concern, prices have stabilized—beneficial for buyers but not for sellers. Property taxes are low. Home equity is healthy 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
Home prices surged in The Garden State last year as the housing market remains active. Affordability could be better, but it is not misaligned with median income. However, New Jersey has the second-highest property taxes in the nation, behind only Illinois, and a 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
Homebuilders are very active in The Tar Heel State, with the second-highest number of housing starts last year, surpassed only by fast-growing Alabama. However, inventory is still tight enough to support strong price appreciation. Property taxes are reasonable, especially considering the state’s rapid 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
Sellers continue to realize decent gains in The Grand Canyon State, even as home inventory grows. Construction activity is robust, and home equity is healthy. Property taxes are low, but so is 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
Home prices are rising in The Palmetto State, but housing remains relatively affordable. This price appreciation may be spurring more construction activity, which is one reason inventory levels are increasing. Property taxes are low. However, home equity could be stronger, and foreclosure rates are relatively high.
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 difficult to assess, but one thing is clear: home values are appreciating, and homebuilders are working hard to meet demand as new residents flock to the state. Property taxes, while not the lowest, help offset the state’s ongoing affordability challenges. Some trends are more concerning, such as rising foreclosures and an increasing number of underwater mortgages.
The state is also grappling with a severe insurance crisis that has significant implications for home values and affordability. Climate risks in Florida, including the housing stock, are substantial. However, for now, the Florida real estate market is striking a decent, albeit precarious, balance, which is helping to drive the nation’s strongest overall economy.
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
Ready to find your perfect home in one of these top states? Start your search today and discover the best real estate opportunities for you!
