America’s Top States for Buying and Selling a Home in 2025: A Deep Dive
The American housing market in 2025 presents a complex picture. Persistent high interest rates and a stubbornly low inventory of homes continue to create a challenging environment for both buyers and sellers. However, the severity of this crisis varies significantly from state to state. As major companies weigh their relocation decisions, they increasingly factor in the local residential real estate market—understanding that their prospective employees need affordable, stable housing options that also serve as sound investments.
CNBC’s annual “America’s Top States for Business” study evaluates states based on this critical balance of affordability and value. The methodology considers price appreciation, seller gains, overall affordability, inventory levels, and housing starts. Furthermore, it scrutinizes indicators of market stress, such as foreclosure rates and the prevalence of underwater mortgages. While every buyer and seller has unique priorities, the following ten states emerged as the most promising for those looking to make their next move in the 2025 housing market.
Delaware: The Quiet Contender
Delaware, often overlooked, offers a compelling proposition for homebuyers. While its housing affordability is generally average, the state scores exceptionally well on property taxes. Homeowners in Delaware pay an effective tax rate of less than half a percent, ranking as the fourth-lowest in the nation. This significant saving can substantially offset higher home prices, making the overall cost of ownership more manageable.
In 2025, Delaware’s economy ranks 10th overall, with a solid B- grade in the Top States category. The state is experiencing healthy price appreciation, with homes increasing in value by approximately 4.73%. Inventory levels remain tight, standing at around two months’ supply, which is typical of the current national trend. The affordability score, while modest at 0.56, is buoyed by the low property taxes. The median sales price in Delaware is approximately $360,700, positioning it as a more accessible market compared to the expensive coastal hubs. For buyers seeking a stable market with low carrying costs, Delaware presents a strong case.
Indiana: Midwest Value Proposition
Indiana continues to stand out as a beacon of value in the Midwest. The Hoosier State offers a rare and attractive combination of affordability, characterized by low property taxes, and healthy price appreciation. Despite inventory remaining tight, homebuyers are finding quality properties at competitive prices. This balance makes Indiana an increasingly attractive destination for those priced out of more expensive regions.
Ranking 19th in the 2025 Top States for Business study with a C grade, Indiana’s housing market is showing robust activity. Price appreciation is impressive, at around 8.02%, indicating strong demand and limited supply. Inventory is tight at just two months, pushing median sales prices to approximately $265,300. The affordability score of 0.81 is among the best in the country, reflecting the state’s commitment to keeping housing accessible. With an effective property tax rate of 0.86%, Indiana manages to maintain affordability without relying solely on low taxes. As remote work continues to reshape housing preferences, Indiana’s blend of affordability and appreciation positions it well for future growth.
Georgia: The Peach State’s Momentum
Georgia’s housing market is experiencing a period of healthy growth and stabilization. In The Peach State, home inventories are gradually building, which is a positive development for affordability. Homebuilders have been particularly active, responding to the sustained demand. This construction boom is helping to ease some of the supply pressures, while price appreciation remains robust.
As the 7th-ranked state in the 2025 Top States for Business with a B grade, Georgia offers a dynamic economic environment. Home appreciation is currently around 7.16%, reflecting the state’s strong job market and desirability as a place to live. Inventory levels have increased to three months, providing buyers with slightly more choice. The affordability score of 0.59 is respectable, given the state’s popularity. With a median sales price of about $385,600 and a reasonable effective property tax rate of 0.82%, Georgia strikes a compelling balance for many homebuyers. The state’s continued economic expansion suggests that its housing market will remain a strong contender for years to come.
Tennessee: Affordable Growth Engine
Tennessee continues to defy national trends with its exceptionally low property taxes, which significantly enhance housing affordability despite the state’s rising home prices. A new state law aims to further boost affordability by incentivizing the development of more multifamily units. In the single-family market, inventory has started to build, moderating price gains and potentially bringing more buyers into the market.
Ranked as the 3rd-best state overall with a B+ grade in 2025, Tennessee’s economy is one of the strongest in the nation. Home appreciation is solid at 6.24%, and while inventory is tight at three months, the low property taxes (0.44% effective rate) help keep the overall cost of living attractive. The median sales price in Tennessee is approximately $393,000, reflecting the strong demand for its lifestyle and economic opportunities. For those seeking a balance of growth and affordability, Tennessee remains a top destination.
Nevada: Volatility and Opportunity
The Silver State’s housing market is historically known for its volatility, and 2025 is proving to be no exception. However, the state has managed to keep inventory levels manageable, and construction activity remains robust. While affordability continues to be a challenge, prices have moderated somewhat, which is a welcome development for buyers even if it dampens gains for sellers. Property taxes in Nevada are low, and home equity levels remain healthy despite a recent uptick in foreclosure activity.
In the 2025 rankings, Nevada is the 8th-best state with a B grade. The state’s housing market is showing mixed signals: price appreciation is around 3.39%, and inventory is tight at two months. The affordability score is relatively low at 0.43%, with a median sales price of about $458,300. Yet, the low effective property tax rate of 0.48% and the state’s appeal for both residents and businesses keep its housing market dynamic. Nevada offers opportunities for those who can navigate its market’s inherent volatility.
New Jersey: High Taxes, High Value
New Jersey’s housing market has experienced significant price surges in recent years, reflecting its desirability as a place to live, particularly for those working in nearby metropolitan areas. Affordability could be better, but it is not entirely out of sync with median incomes. However, New Jersey faces a significant challenge with the second-highest property taxes in the nation, trailing only Illinois. This, combined with a relatively high foreclosure rate, creates a complex environment for homeowners.
Despite these challenges, New Jersey ranks 17th in the 2025 Top States for Business with a C+ grade. The housing market is showing strong appreciation at 11.38%, with inventory at two months. The affordability score is modest at 0.56, and the median sales price is around $532,400. The high effective property tax rate of 1.64% is a significant factor that buyers must consider. For those who can absorb the higher tax burden, New Jersey offers access to excellent schools, amenities, and job markets.
North Carolina: The Growth Leader
North Carolina is experiencing a construction boom, with homebuilders being particularly active, ranking second only to Alabama in housing starts. Despite this high level of construction, inventory remains tight, which is keeping price appreciation strong. Property taxes are reasonable, especially considering the state’s rapid growth and the high demand for its housing. This balance of growth and affordability makes North Carolina a compelling destination.
Ranked as the 4th-best state overall with a B+ grade in 2025, North Carolina’s housing market is a key driver of its economic success. Home appreciation is robust at 6.98%, with inventory at two months. The affordability score is approximately 0.52, and the median sales price is around $383,700. The effective property tax rate is a low 0.6%. As North Carolina continues to attract new residents and businesses, its housing market is well-positioned for sustained growth and stability.
Arizona: Sustained Demand
Sellers in Arizona continue to enjoy healthy gains in home values, even as home inventory builds to meet demand. Construction activity is strong, and home equity levels are robust. Property taxes are low, but housing affordability is a persistent challenge, reflecting the state’s popularity as a retirement and relocation destination. The arid climate and lifestyle amenities continue to draw buyers in large numbers.
As the 5th-ranked state in the 2025 Top States for Business with a B+ grade, Arizona’s economy is thriving. Home appreciation is currently around 6.63%, with inventory at three months. The affordability score is low at 0.44, with a median sales price of about $450,800. The effective property tax rate is very low at 0.41%. For buyers seeking a low-tax environment with strong appreciation potential, Arizona remains an attractive, albeit increasingly expensive, option.
South Carolina: Steady Appreciation
South Carolina’s housing market is characterized by rising home prices, yet the state maintains a relatively high level of
