These Are the 10 Best States for Buying and Selling a Home in 2024
America is in the throes of a severe housing crisis. Inventory is scarce, affordable options are even harder to come by, and persistently high mortgage rates are making a difficult situation even worse. Yet, the severity of this crisis varies dramatically from state to state.
When companies decide where to relocate or expand, they carefully evaluate the local residential real estate market. They seek locations where prospective employees can find affordable housing that also represents a solid investment. Consequently, the housing market plays a crucial role in determining a state’s overall business competitiveness.
CNBC incorporates the housing market into the Economy category of its annual America’s Top States for Business study. This year’s methodology grades states on their balance of affordability and value, considering factors like price appreciation, seller gains, inventory levels, housing starts, and affordability scores. The study also flags signs of market stress, such as foreclosure activity and underwater mortgages.
While every buyer and seller has unique priorities, the housing markets in these ten states offer some of the best opportunities in the country.
Delaware
Home prices in The First State are moderately affordable, but the state’s exceptionally low property taxes significantly enhance the value of a Delaware home. Homeowners here pay an effective property tax rate of less than half a percent—the fourth-lowest in the nation, according to ATTOM, a real estate data firm.
2024 Economy Rank: No. 10 (Top States Grade: B-)
Price 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 presents a rare combination of affordability, characterized by low property taxes, and healthy price appreciation. Despite persistent inventory tightness, Indiana homebuyers continue to find attractive options at reasonable prices.
2024 Economy Rank: No. 19 (Top States Grade: C)
Price Appreciation: 8.02%
Inventory (July): 2 months
Affordability Score: 0.81
Effective Property Tax Rate: 0.86%
Median Sales Price: $265,300
Georgia
Home inventories are expanding in The Peach State, which is a positive development for affordability. Homebuilders have been particularly active, yet price appreciation remains robust.
2024 Economy Rank: No. 7 (Top States Grade: B)
Price Appreciation: 7.16%
Inventory (July): 3 months
Affordability Score: 0.59
Effective Property Tax Rate: 0.82%
Median Sales Price: $385,600
Tennessee
Despite having some of the lowest property taxes in the country, affordability is a challenge in The Volunteer State. However, a new law aims to encourage the development of more affordable multifamily housing. In the single-family market, rising inventory levels have tempered price gains and may attract more buyers.
2024 Economy Rank: No. 3 (Top States Grade: B+)
Price Appreciation: 6.24%
Inventory (July): 3 months
Affordability Score: 0.49
Effective Property Tax Rate: 0.44%
Median Sales Price: $393,000
Nevada
The housing market in The Silver State is historically volatile, and this year is no exception. Nevertheless, inventory levels are manageable, and home construction remains active. While affordability continues to be an issue, prices have moderated—beneficial for buyers but challenging for sellers. Property taxes are low, and homeowner equity is healthy despite a modest increase in foreclosure activity.
2024 Economy Rank: No. 8 (Top States Grade: B)
Price Appreciation: 3.39%
Inventory (July): 2 months
Affordability Score: 0.43%
Effective Property Tax Rate: 0.48%
Median Sales Price: $458,300
New Jersey
Home prices surged in The Garden State last year, reflecting a robust housing market. Affordability could be better, though it remains aligned with median incomes. However, New Jersey levies the second-highest property taxes in the nation, trailing only Illinois, and also contends with a high foreclosure rate.
2024 Economy Rank: No. 17 (Top States Grade: C+)
Price 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 exceptionally busy in The Tar Heel State, with the second-highest level of housing starts in the nation last year, surpassed only by the rapidly growing state of Alabama. Nonetheless, inventory remains tight enough to sustain strong price appreciation. Property taxes are reasonable, especially considering the state’s rapid growth.
2024 Economy Rank: No. 4 (Top States Grade: B+)
Price Appreciation: 6.98%
Inventory (July): 2 months
Affordability Score: 0.52
Effective Property Tax Rate: 0.6%
Median Sales Price: $383,700
Arizona
Sellers continue to realize solid gains in The Grand Canyon State, even as home inventory expands. Construction activity is robust, and homeowner equity is healthy. Property taxes are low, but housing affordability is correspondingly low.
2024 Economy Rank: No. 5 (Top States Grade: B+)
Price 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 rising in The Palmetto State, yet housing remains relatively affordable. This price appreciation is likely spurring increased construction activity, contributing to higher inventory levels. Property taxes are low. However, homeowner equity could be stronger, and the foreclosure rate is somewhat elevated.
2024 Economy Rank: No. 12 (Top States Grade: B-)
Price Appreciation: 9.42%
Inventory (July): 3 months
Affordability Score: 0.61
Effective Property Tax Rate: 0.5%
Median Sales Price: $387,700
Florida
The Sunshine State’s housing market is notoriously complex, but one thing is clear: home values are appreciating, and builders are working diligently to meet the demand from a steady influx of new residents. Property taxes, while not the lowest, help offset the state’s persistent affordability challenges. Some trends are more concerning, such as rising foreclosures and an increasing number of underwater mortgages.
Furthermore, the state is grappling with a significant insurance crisis that has profound implications for home values and affordability. Climate risks in Florida, including threats to its housing stock, are undeniable. Nonetheless, the Florida real estate market is currently striking a delicate balance, which is helping to power the nation’s strongest overall economy.
2024 Economy Rank: No. 1 (Top States Grade: A+)
Price Appreciation: 6.85%
Inventory (July): 4 months
Affordability Score: 0.44
Effective Property Tax Rate: 0.76%
Median Sales Price: $420,100
