America’s Housing Market in 2025: Top States for Buyers and Sellers
The American housing market in 2025 is a study in contrasts. Persistent high mortgage rates and a stubbornly tight supply of affordable homes continue to challenge both buyers and sellers. Yet, the severity of this crisis varies dramatically across the nation. For companies evaluating where to expand, the local residential real estate market is a critical factor, influencing their ability to attract and retain talent.
At CNBC, we evaluate the housing market as a core component of the Economy category in our annual America’s Top States for Business study. This year, our methodology prioritizes the delicate balance between affordability and value. We analyze price appreciation and seller gains, alongside affordability metrics, inventory levels, and housing starts. Furthermore, we scrutinize signs of market stress, such as foreclosure activity and the prevalence of underwater mortgages.
While every homebuyer and seller has unique priorities, the markets in these ten states may offer the most compelling opportunities in 2025.
Delaware: The Value Proposition
The First State presents a compelling case for value-conscious buyers. While housing affordability is roughly on par with the national average, Delaware’s exceptionally low property taxes provide a significant financial advantage. Homeowners here benefit from an effective tax rate of less than half a percent, among the 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: Steady Growth in the Midwest
Indiana offers a rare combination of affordability and healthy price appreciation. Despite persistently tight inventory, homebuyers in the Hoosier State are finding desirable properties at attractive price points. The state’s low property taxes further enhance its appeal to those looking to maximize their housing dollars.
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: Inventory Gains and Builder Activity
The Peach State is experiencing a welcome increase in home inventories, which is helping to improve affordability. Homebuilders have responded to demand with robust construction activity. As a result, price appreciation remains healthy, creating a favorable environment for both buyers and sellers.
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: Innovation in Affordable Housing
Tennessee is addressing its housing affordability challenges through innovative policy. A new state law includes incentives aimed at increasing the supply of affordable multifamily units. In the single-family market, rising inventories have moderated price gains, potentially bringing more buyers into the fold. The state’s low property taxes continue to be a significant draw.
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: Volatility Meets Opportunity
The Silver State’s housing market is historically volatile, and 2025 is proving to be no exception. However, inventory levels are manageable, and housing construction remains active. While affordability continues to be a concern, price moderation is providing some relief for buyers. Property taxes are low, and home equity remains 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: High Taxes, High Value
New Jersey’s housing market has seen prices surge, reflecting strong demand. Affordability could be improved, but prices remain relatively aligned with median incomes. However, the state faces the challenge of having the second-highest property taxes in the nation, trailing only Illinois. A notable foreclosure rate also warrants attention.
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: Growth and Affordability
Homebuilders are exceptionally active in North Carolina, with housing starts ranking among the highest in the nation. Despite this construction boom, inventory remains tight, keeping price appreciation strong. Property taxes are reasonable, especially considering the state’s rapid growth, offering a favorable balance for residents.
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: Building Momentum
Sellers in Arizona continue to realize solid gains, even as home inventories gradually increase. Construction activity is robust, and home equity levels are healthy. Property taxes are low, but this has contributed to housing affordability challenges. For buyers willing to navigate a competitive market, Arizona offers significant upside potential.
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: Rising Markets, Rising Concerns
Home prices are appreciating in South Carolina, yet the state remains relatively affordable compared to national averages. This price growth is likely spurring increased construction, which is helping to boost inventory levels. Property taxes are low, but home equity could be stronger, and foreclosure rates are somewhat elevated.
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: A Complex Equation
The Sunshine State’s housing market defies simple categorization. Home values are appreciating robustly, driven by substantial new resident inflows. Homebuilders are working diligently to meet this demand. While property taxes help offset affordability issues, the state is grappling with rising foreclosures and an increasing number of underwater mortgages.
Compounding these challenges is a severe insurance crisis with significant implications for home values and affordability. Climate risks, particularly to the housing stock, are a serious concern. Despite these headwinds, Florida’s real estate market is currently striking a delicate balance, contributing to 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
Navigating the 2025 Market
The 2025 housing market presents a complex landscape for both buyers and sellers. While high mortgage rates and tight inventory remain significant hurdles, opportunities exist for those who understand the nuances of local markets. Delaware offers exceptional value through low property taxes, while Indiana provides a compelling combination of affordability and growth. Georgia and North Carolina are seeing robust construction activity that is helping to balance supply and demand.
In Nevada, the traditionally volatile market offers opportunities for those who can navigate price fluctuations. New Jersey presents a high-value proposition despite its high taxes, and Arizona continues to attract buyers with its strong construction and healthy home equity. South Carolina offers a balance of rising markets and affordability, though inventory and foreclosure levels warrant attention.
Florida, despite its unique challenges, remains a dynamic market driven by strong population growth. However, buyers and sellers must carefully consider the risks associated with insurance costs and climate concerns.
Ultimately, the best state for buying and selling a home in 2025 depends on individual priorities, risk tolerance, and financial goals. A thorough understanding of
