These Are America’s 10 Best States for Buying and Selling a Home in 2024, With a Big Caveat at No. 1
High interest rates and a persistently tight housing supply are creating significant headwinds for both homebuyers and sellers. The ripple effects are being felt across the nation, but the severity of the residential real estate crisis varies widely from state to state. Furthermore, in some of the top-ranked states, buyers and sellers are increasingly contending with rising climate risks that could impact long-term property values and insurance costs.
Recognizing the critical role the residential real estate market plays in business relocation decisions, CNBC has once again incorporated housing market dynamics into its annual America’s Top States for Business study. This year’s analysis focuses on identifying states that offer the best balance of housing affordability and investment value, taking into account a comprehensive set of economic indicators.
The United States is currently grappling with a significant housing affordability crisis. The supply of available homes remains critically low, and the supply of affordable housing options is even more constrained. Compounding these supply-side issues are persistently high mortgage rates, which have further eroded purchasing power for prospective buyers. However, the extent of this crisis is not uniform across the country; rather, it presents a patchwork of challenges and opportunities that differ substantially from one state to another.
This disparity in market conditions is a key factor that influences corporate location strategies. Companies frequently evaluate the local residential real estate market as part of their decision-making process when considering where to establish or expand their operations. Their prospective employees require access to housing that is not only affordable but also represents a sound long-term investment. Consequently, the health and stability of the housing market are considered crucial elements of a state’s overall business competitiveness.
Within the framework of America’s Top States for Business, the residential real estate market is evaluated as a key component of the Economy category. The methodology employed in this year’s rankings is designed to assess the critical balance between housing affordability and value. This evaluation encompasses a range of metrics, including price appreciation trends, seller gains realized from home sales, and the general affordability of housing options. Additionally, the analysis considers critical supply-side factors such as housing inventory levels and the rate of new housing construction starts. The assessment also seeks to identify signs of market stress, such as foreclosure activity and the prevalence of underwater mortgages, where homeowners owe more on their loans than their homes are worth.
While the specific priorities of individual homebuyers and sellers can vary significantly based on their personal circumstances and financial goals, the housing markets in the following ten states present compelling opportunities that could offer the best value proposition for those looking to enter or exit the market.
Delaware
Delaware, often referred to as “The First State,” presents a housing market characterized by generally average affordability levels. However, the purchasing power of a Delaware homeowner’s housing dollar is significantly enhanced by the state’s exceptionally low property taxes. According to data from ATTOM, a leading real estate data firm, Delaware homeowners face an effective property tax rate of less than half a percent, ranking as the fourth-lowest rate in the entire nation. This low tax burden can substantially reduce the overall cost of homeownership, even if purchase prices are not at the lowest end of the spectrum.
For the 2024 assessment, Delaware was ranked No. 10 in the Economy category of America’s Top States for Business, earning a “B-” grade. This ranking reflects a solid, though not top-tier, performance in economic competitiveness. The state demonstrated a price appreciation rate of 4.73%, indicating steady growth in home values. Housing inventory levels were recorded at 2 months as of July 2024, which is below the 3-4 months generally considered a balanced market, suggesting continued competitive conditions for buyers. The affordability score, calculated on a scale of 0 to 2 with 2 being the most affordable, stood at 0.56. When combined with the very low effective property tax rate of 0.43%, Delaware’s overall housing proposition becomes more attractive. The median sales price for a home in the state was reported at $360,700, placing it in the middle tier of the national market.
Indiana
The Hoosier State, Indiana, offers a compelling and relatively rare combination of housing market attributes: a strong foundation of affordability, underpinned by low property taxes, coupled with healthy price appreciation. While housing inventory levels remain tight, which can create competitive bidding situations, homebuyers in Indiana are still finding opportunities to purchase homes at attractive price points. This balance of value and appreciation is a key differentiator in the current national market.
In the 2024 rankings, Indiana secured the No. 19 position in the Economy category, receiving a “C” grade. This indicates moderate economic performance, with the housing market contributing positively to the state’s overall profile. The state’s price appreciation rate was robust at 8.02%, demonstrating significant growth in home values over the review period. Mirroring the national trend, Indiana’s housing inventory was reported at 2 months as of July 2024, signaling a seller’s market. The state’s affordability score was a relatively strong 0.81, reflecting better relative affordability compared to many other states. This is further supported by an effective property tax rate of 0.86%, which is below the national average. The median sales price in Indiana was $265,300, positioning it as one of the more affordable states for homebuyers looking to enter the market.
Georgia
The Peach State, Georgia, is experiencing a positive shift in its housing market dynamics, with home inventories beginning to build. This increase in supply is a welcome development for affordability, as it can help to moderate price increases and provide more choices for prospective buyers. Furthermore, homebuilders in Georgia have been particularly active, contributing to the new construction pipeline and helping to meet the demand from new residents and existing homeowners looking to move up or downsize. Despite the increase in supply, price appreciation in Georgia remains healthy, indicating that the market is still growing at a solid pace.
Georgia was ranked No. 7 in the Economy category for 2024, earning a “B” grade, reflecting strong economic fundamentals. The state recorded a price appreciation rate of 7.16%, demonstrating consistent growth in home values. Housing inventory levels, as of July 2024, were reported at 3 months, which is closer to a balanced market compared to states with lower inventory. The affordability score was 0.59, indicating that while Georgia is more affordable than some states, there are still challenges for buyers at the lower end of the income spectrum. The effective property tax rate was 0.82%, which is reasonable for a growing state. The median sales price in Georgia was $385,600, placing it in a mid-range position nationally, but with better relative affordability than many coastal markets.
Tennessee
The Volunteer State, Tennessee, offers one of the most attractive property tax environments in the country. Homeowners in Tennessee benefit from some of the lowest property taxes nationwide, which can significantly reduce the long-term cost of homeownership. However, despite this tax advantage, housing affordability remains a notable challenge in the state. This is largely due to rising home prices and a competitive market that has outpaced wage growth in many areas.
In response to the affordability challenge, a new state law has been enacted that includes incentives aimed at encouraging the development of more affordable housing, particularly in the multifamily sector. This legislation represents a proactive effort by the state government to address the housing shortage. In the single-family market, inventory levels have begun to build, which has had the effect of moderating price gains. This stabilization in price growth could, in turn, attract more buyers who have been waiting for a more favorable market environment. Tennessee was recognized as the No. 3 state in the 2024 Economy category with a strong “B+” grade, indicating robust economic performance. The state’s price appreciation rate was 6.24%, demonstrating solid growth. Housing inventory stood at 3 months as of July 2024, with a relatively low affordability score of 0.49. The effective property tax rate was a very low 0.44%, and the median sales price was $393,000, reflecting the premium placed on homes despite the low taxes.
Nevada
The Silver State, Nevada, is known for its historically volatile housing market, and the current environment continues this trend. This year is no exception, with the market experiencing significant shifts in inventory and pricing. Despite the volatility, housing construction remains active, with homebuilders working to meet the demand from new residents and investors drawn to the state’s lower tax burden and business-friendly environment. Inventory levels are considered manageable, providing some breathing room for buyers compared to the extreme shortages seen in previous years.
While affordability continues to be a significant issue, especially for first-time homebuyers, home prices have moderated somewhat. This moderation is a positive development for buyers seeking an entry point into the market, though it presents a challenge for sellers who have grown accustomed to rapid price appreciation. Property taxes in Nevada are low, which helps to offset some of the higher home prices. Home equity levels are generally healthy, although there has been an uptick in foreclosure activity in certain areas, reflecting the market’s volatility and the impact of higher interest rates on some borrowers. Nevada ranked No. 8 in the 2024 Economy category with a “B” grade. The state recorded a price appreciation rate of 3.39%, which is modest compared to other high-growth states. Inventory was tight at 2 months as of July 2024, with an affordability score of 0
