America’s 10 Best States for Buying and Selling a Home in 2024, With a Big Caveat at No. 1
America is locked in a housing crisis. Home supply is tight, affordable options are even scarcer, and high mortgage rates are compounding the problem. Yet, the severity of this crisis varies wildly from state to state. For businesses looking to relocate, the local housing market is a critical factor—prospective employees need an affordable place to live that’s also a sound investment. This makes housing a key component of state competitiveness, influencing where companies choose to set up shop.
CNBC factors the housing market into the Economy category of its annual America’s Top States for Business study. This year, states are graded on the balance between affordability and value. The analysis considers price appreciation, seller gains, housing starts, and inventory levels. It also flags signs of market stress, such as foreclosure activity and underwater mortgages.
While every buyer and seller has unique priorities, these ten states offer some of the best opportunities in the nation.
Delaware
The First State offers housing affordability that’s about average, but its appeal gets a significant boost from exceptionally low property taxes. Delaware homeowners pay an effective tax rate of less than half a percent, ranking as the fourth-lowest in the country. This tax advantage helps offset slightly higher home prices, making Delaware a financially attractive option for many buyers.
2024 Economy Rank: No. 10 (Top States Grade: B-)
Appreciation: 4.73%
Inventory (July): 2 months
Affordability Score (0-2, 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, bolstered by low property taxes, and healthy price appreciation. Although inventory remains tight, homebuyers in Indiana are still finding desirable properties at attractive prices. The state’s moderate cost of living and strong job market continue to draw residents seeking value and stability.
2024 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 trend: home inventories are increasing, which is a positive development for affordability. Homebuilders have been active, adding new supply to the market. Despite this growth, price appreciation remains robust, indicating strong demand and sustained market health. Georgia’s dynamic economy and growing job centers continue to attract new residents.
2024 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 is a growing concern in the Volunteer State. A new state law includes incentives aimed at encouraging the development of more affordable multifamily housing. In the single-family market, inventory levels have begun to rise, which has helped moderate price gains and may attract more buyers who have been sidelined by high costs.
2024 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 the current landscape is no exception. However, inventory levels are manageable, and housing construction remains active. While affordability continues to be a challenge, price moderation is good news for buyers, though less so for sellers. Property taxes are low, and home equity remains healthy despite a recent uptick in foreclosure activity.
2024 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 maintained its momentum. Affordability could certainly be better, but it’s not entirely out of line with median incomes. The main drawback in New Jersey is the high cost of property taxes, second only to Illinois nationwide. Additionally, the state grapples with a relatively high foreclosure rate, which adds a layer of risk for some homeowners.
2024 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 last year, trailing only the rapidly growing state of Alabama. Despite this construction boom, inventory remains tight enough to keep price appreciation strong. Property taxes are reasonable, especially when considering the state’s rapid population growth and the associated demand for housing.
2024 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 solid gains in the Grand Canyon State, even as home inventories build. Construction activity is robust, and home equity levels are healthy. Property taxes are low, but this is counterbalanced by a low housing affordability score, making it challenging for many buyers to enter the market. The state’s desirable climate and economic opportunities continue to drive demand.
2024 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 compared to many other parts of the country. This price appreciation appears to be spurring more construction activity, which is helping to boost inventory levels. Property taxes are low, but home equity could be stronger, and foreclosure rates are on the higher side. These factors present a mixed picture for potential buyers and sellers.
2024 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 some trends are clear: home values are appreciating, and builders are working hard to meet demand as new residents flock to the state. Property taxes, while not the lowest, help mitigate some of the state’s affordability challenges. However, concerning trends include rising foreclosures and an increasing number of underwater mortgages.
Furthermore, Florida is grappling with a severe insurance crisis that could significantly impact home values and affordability. The state’s climate risks are undeniable, posing a long-term threat to the housing stock. Despite these significant challenges, the Florida real estate market is currently striking a delicate balance, fueling the nation’s strongest overall economy. This precarious equilibrium makes Florida a top contender, albeit with notable risks that warrant careful consideration.
2024 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
Navigating Today’s Housing Market
The U.S. housing market is navigating a period of significant transition. High mortgage rates and tight inventory continue to create challenges for both buyers and sellers. However, as this list demonstrates, opportunities still exist across the country. Factors like property taxes, home appreciation rates, and local economic growth all play crucial roles in determining where buyers and sellers will find the best value.
While market conditions will undoubtedly continue to evolve,
