These are America’s 10 Best States for Buying and Selling a Home in 2024, With a Big Caveat at No. 1
Homebuyers and sellers are currently navigating a turbulent market characterized by high interest rates and a persistent shortage of housing inventory. This challenging environment has significantly impacted both affordability and potential returns on investment across the country. However, the severity of this residential real estate crisis varies considerably from state to state. Furthermore, in several of the top-performing states, rising climate risks are adding another layer of complexity for homeowners and investors.
When making decisions about where to locate their operations, companies frequently evaluate the health of the local residential real estate market. Prospective employees need access to housing that is both affordable and likely to retain or increase its value over time. Consequently, the housing market has emerged as a critical factor in determining a state’s overall business competitiveness.
In our annual America’s Top States for Business study, the housing market is assessed as part of the Economy category. The methodology for this year’s rankings focuses on the delicate balance between affordability and value. We analyze metrics such as price appreciation, seller gains, inventory levels, housing starts, and affordability scores. Additionally, we evaluate indicators of market stress, including foreclosure activity and the prevalence of underwater mortgages.
While individual priorities differ for every buyer and seller, the following ten states offer housing markets that could provide the most favorable conditions for those looking to enter, exit, or navigate the market.
Delaware
Delaware, known as The First State, presents a housing market where affordability is generally in line with the national average. However, the state’s appeal is significantly enhanced by remarkably low property taxes. Homeowners in Delaware benefit from an effective tax rate that is less than half a percent of the property value, ranking as the fourth-lowest in the United States according to real estate data firm ATTOM. This low tax burden helps to offset the median sales price of $360,700. The state’s inventory stands at a tight 2 months as of July, and the affordability score is 0.56 (on a scale where 2 is the most affordable). Despite the tight inventory, price appreciation has been steady at 4.73%.
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 offers a compelling combination of affordability and healthy price appreciation, a relatively rare finding in the current market. Indiana boasts low property taxes, further enhancing its attractiveness to homebuyers. While inventory levels remain tight, buyers are still finding opportunities to purchase homes at attractive price points. The median sales price in Indiana is $265,300, supported by an effective property tax rate of 0.86%. Inventory levels were reported at 2 months in July, and the state’s affordability score is 0.81. Price appreciation has been robust, reaching 8.02%.
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
Georgia, known as The Peach State, is experiencing a welcome increase in home inventories, which is having a positive effect on affordability. Homebuilders have been particularly active in the state, contributing to the rising supply. Despite the increased inventory, price appreciation has remained healthy, with a median sales price of $385,600. The effective property tax rate is 0.82%, and inventory levels were at 3 months in July. Georgia’s affordability score is 0.59, and price appreciation stood at 7.16%.
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
The Volunteer State, Tennessee, offers some of the lowest property taxes in the nation. However, this benefit is somewhat counteracted by existing affordability challenges in the housing market. A new state law aims to address this by providing incentives for the development of more affordable multifamily housing units. In the single-family market, inventory has begun to build, which has helped to moderate price gains and may encourage more buyers to enter the market. The median sales price in Tennessee is $393,000, with an effective property tax rate of 0.44%. Inventory was reported at 3 months in July, and the affordability score is 0.49. Price appreciation was recorded at 6.24%.
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 known for its volatility, and the current year is proving to be no exception. Nevertheless, inventory levels are considered manageable, and housing construction activity is robust. While affordability continues to be a concern, price moderation has occurred, which benefits buyers but presents a challenge for sellers. Property taxes in Nevada are low, with a median sales price of $458,300. The effective property tax rate is 0.48%, and inventory stood at 2 months in July. The affordability score is 0.43%, and price appreciation was recorded at 3.39%. Despite an uptick in foreclosure activity, home equity remains healthy.
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
In The Garden State, home prices experienced a surge over the past year, reflecting the continued activity in the housing market. Affordability could be improved, but it remains relatively aligned with median income levels. However, New Jersey faces a significant challenge with the second-highest property taxes in the nation, trailing only Illinois. Additionally, the state has a relatively high foreclosure rate. The median sales price is $532,400, with an effective property tax rate of 1.64%. Inventory levels were at 2 months in July, and the affordability score is 0.56. Price appreciation was notably strong at 11.38%.
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 very active in The Tar Heel State, which posted the second-highest level of housing starts last year, surpassed only by the rapidly growing state of Alabama. Despite this construction boom, inventory remains tight enough to sustain strong price appreciation. Property taxes are considered reasonable, especially when factoring in the state’s rapid population growth. The median sales price in North Carolina is $383,700, with an effective property tax rate of 0.6%. Inventory was reported at 2 months in July, and the affordability score is 0.52. Price appreciation was healthy at 6.98%.
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
In The Grand Canyon State, sellers continue to realize solid gains even as home inventories increase. Construction activity is robust, and homeowners generally maintain healthy levels of equity. Property taxes are low, but this is coupled with low housing affordability. The median sales price in Arizona is $450,800, with an effective property tax rate of 0.41%. Inventory was reported at 3 months in July, and the affordability score is 0.44. Price appreciation was recorded at 6.63%.
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 on the rise in The Palmetto State, yet the housing market remains relatively affordable. This price appreciation may be stimulating increased construction activity, which is one factor contributing to rising inventory levels. Property taxes in
