America’s Housing Market: 10 States for Buyers and Sellers in 2024
The U.S. housing market is in a prolonged state of flux. Persistent high mortgage rates and a stubbornly low inventory of available homes have created a challenging environment for both prospective buyers and current homeowners looking to sell. While the overall national picture appears grim, the reality on the ground varies dramatically from state to state. For businesses scouting new locations, the health of the local residential real estate market is a critical factor, influencing their ability to attract and retain talent. Recognizing this, CNBC’s annual “America’s Top States for Business” study evaluates states based on the delicate balance between affordability and value in their housing markets. This analysis considers price appreciation, seller gains, inventory levels, new construction activity, and indicators of market stress such as foreclosure rates and underwater mortgages.
For those navigating the current real estate landscape, understanding these regional dynamics is key. Here are the ten states that, despite the national headwinds, present some of the most compelling opportunities for both buying and selling property in 2024.
Delaware
Delaware, often called “The First State,” offers a housing market that is remarkably balanced, buoyed by exceptionally low property taxes. While the state’s overall housing affordability is right around the national average, the financial burden on homeowners is significantly eased by one of the lowest effective property tax rates in the country. According to data from real estate analytics firm ATTOM, Delaware homeowners pay an effective property tax rate of less than half of one percent, ranking as the fourth lowest nationwide. This fiscal advantage helps offset the median home price, which sits at $360,700. In terms of market activity, inventory levels are tight, standing at two months as of July 2024, which is typical for a seller’s market. However, the state’s $10,000 median household income supports a modest affordability score of 0.56 (on a scale where 2 is most affordable). Price appreciation has been steady at 4.73%, and the market shows minimal signs of stress, with low foreclosure activity. This combination of low taxes, stable appreciation, and manageable market conditions makes Delaware an attractive option for buyers seeking financial predictability and sellers looking for a stable resale environment. Delaware’s economy ranked 10th overall in the 2024 Top States for Business study, with a B- grade, further underscoring its stable economic foundation which supports the housing market.
Indiana
The Hoosier State presents a compelling case for buyers and sellers seeking value and growth. Indiana offers a rare combination of affordability, characterized by low property taxes, and healthy price appreciation. Despite inventory remaining tight, with only two months of supply as of July 2024, the median sales price has reached a very accessible $265,300. This affordability is supported by a median household income of $69,900, which contributes to an affordability score of 0.81, one of the highest in the nation. The effective property tax rate is reasonable at 0.86%, and the market has experienced robust price appreciation of 8.02%. This strong growth, coupled with low foreclosure rates, indicates a healthy and stable market. Indiana’s economic performance ranked 19th overall, with a C grade, but its housing market stands out as a strong performer. For sellers, the demand driven by affordability can lead to quicker sales, while buyers can take advantage of lower entry costs. The combination of low taxes, strong appreciation, and high affordability makes Indiana a standout market in the Midwest for those looking to make a strategic real estate move.
Georgia
Georgia, known as The Peach State, is experiencing a period of robust housing market activity, characterized by increasing inventories and strong homebuilding efforts. This surge in construction is helping to alleviate some of the inventory constraints that have plagued the national market. As a result, while home prices are appreciating, the rate of increase is being moderated by the increased supply. The median sales price in Georgia stands at $385,600, supported by a median household income of $77,900, which yields an affordability score of 0.59. The state’s effective property tax rate is a modest 0.82%, and inventory levels have improved to three months as of July 2024. Price appreciation remains healthy at 7.16%, and the market shows minimal signs of stress, with low foreclosure activity. Georgia’s overall economy ranked 7th in the 2024 Top States for Business study, with a B grade, reflecting its strong economic performance which underpins the housing market. For both buyers and sellers, the growing inventory and healthy appreciation create a dynamic environment. Buyers benefit from more choices and moderating price increases, while sellers can still capitalize on solid price gains and relatively low taxes. This balance makes Georgia a strong contender in the southeastern U.S. real estate landscape.
Tennessee
Tennessee, The Volunteer State, presents a unique housing market characterized by some of the lowest property taxes in the country, yet affordability remains a challenge in certain areas. A new state law aims to address this by incentivizing the development of more affordable multi-family housing units, which could help alleviate pressure on the single-family market. Inventory levels have started to build, currently at three months as of July 2024, which has helped to moderate price gains. This has, in turn, opened the door for more buyers to enter the market. The median sales price in Tennessee is $393,000, supported by a median household income of $70,900, resulting in an affordability score of 0.49. The state’s effective property tax rate is extremely low at 0.44%, the fourth lowest in the nation. Price appreciation has been solid at 6.24%, and while foreclosure activity has ticked up slightly, it remains at manageable levels. Tennessee’s economy ranked 3rd overall in the 2024 Top States for Business study, with a B+ grade, indicating a strong economic foundation that supports the housing market. For sellers, the low taxes and strong appreciation offer significant financial benefits, while buyers can benefit from the increasing inventory and moderating price growth. This combination of low taxes and improving inventory makes Tennessee an attractive market for those seeking value in the Southeast.
Nevada
Nevada, The Silver State, is known for its historically volatile real estate market, and the current environment is no exception. However, despite the volatility, inventory levels are manageable, and housing construction remains active, providing some stability to the market. Affordability continues to be a significant issue, but price moderation is a positive development for buyers, though it presents a challenge for sellers seeking maximum gains. The median sales price in Nevada stands at $458,300, supported by a median household income of $77,800, which yields an affordability score of 0.43. The state’s effective property tax rate is low at 0.48%, and inventory levels are tight at two months as of July 2024. Price appreciation has been modest at 3.39%, and while foreclosure activity has seen an uptick, home equity remains relatively healthy. Nevada’s economy ranked 8th overall in the 2024 Top States for Business study, with a B grade, demonstrating its economic strength despite the housing market’s volatility. For buyers, the moderating prices offer a better entry point, while sellers may need to adjust expectations. The combination of low taxes and active construction provides a mixed but intriguing landscape for real estate investors and homeowners alike.
New Jersey
New Jersey, The Garden State, has experienced a surge in home prices over the past year, reflecting the ongoing strength of its housing market. Affordability could certainly be improved, but the current price levels are not entirely out of sync with the state’s median income. However, New Jersey faces a significant challenge in the form of the second-highest property taxes in the nation, surpassed only by Illinois, and a relatively high foreclosure rate. The median sales price in New Jersey is $532,400, supported by a median household income of $97,600, resulting in an affordability score of 0.56. Inventory levels are tight at two months as of July 2024, and price appreciation has been strong at 11.38%. The state’s effective property tax rate is high at 1.64%, and foreclosure activity is a concern. New Jersey’s economy ranked 17th overall in the 2024 Top States for Business study, with a C+ grade, indicating a mixed economic performance that is reflected in the housing market. For sellers, the strong price appreciation is a major draw, but the high property taxes and foreclosure risk can deter some buyers. This dynamic makes New Jersey a market where sellers may still command high prices, but buyers need to be mindful of the long-term carrying costs.
North Carolina
North Carolina, The Tar Heel State, is experiencing robust activity in its housing market, with homebuilders being particularly active. The state ranks second nationally in terms of housing starts, trailing only the rapidly growing state of Alabama. This high level of construction activity is helping to boost inventory, but demand remains strong, keeping price appreciation robust. The median sales price in North Carolina is $383,700, supported by a median household income of $78,700, which yields an affordability score of 0.52. The state’s effective property tax rate is reasonable at 0.6%, and inventory levels are tight at two months as
