The 10 Best States for Buying and Selling Real Estate in 2024: A Market in Transition
America is currently grappling with a full-blown housing crisis. Inventory levels are alarmingly low, the availability of affordable homes is even more constrained, and the specter of persistently high mortgage rates is making an already difficult situation worse. However, the severity of this crisis is not uniform across the nation; it varies significantly from one state to the next. This dynamic is a critical factor for businesses when they are deciding where to establish or relocate their operations, as they seek locations where their prospective employees can find both affordable housing and a sound long-term investment. Consequently, the residential real estate market has become an essential component of 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. Under this year’s methodology, states are evaluated based on the crucial balance between affordability and value. The analysis considers price appreciation and seller gains, alongside affordability metrics, inventory levels, and housing starts. Furthermore, it scrutinizes indicators of market stress, such as foreclosure activity and the prevalence of underwater mortgages.
While every buyer and seller undoubtedly has their own unique priorities, the housing markets in the following ten states present a compelling case for those seeking the best return on their investment.
Delaware: The First State’s Tax Advantage
Housing affordability in Delaware is generally considered to be around the national average. However, the purchasing power of your housing dollar is significantly enhanced by the state’s exceptionally low property taxes. According to data from the real estate analytics firm ATTOM, Delaware homeowners face an effective tax rate of less than half of one percent, which ranks as the fourth-lowest rate in the country.
2024 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: A Midwestern Sweet Spot
The Hoosier State presents a compelling and somewhat rare combination of affordability, bolstered by low property taxes, and healthy price appreciation. Although inventory levels remain tight, homebuyers in Indiana are still finding properties that meet their needs at attractive price points.
2024 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: Growth and Balance in the Peach State
Home inventories are showing signs of improvement in Georgia, which is a positive development for affordability. The state’s homebuilders have also been active, contributing to the supply. Despite this, price appreciation continues to demonstrate healthy momentum.
2024 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: Value Amidst Rising Costs
Despite possessing some of the lowest property taxes in the nation, Tennessee is currently experiencing affordability challenges. A new state law has been enacted to introduce incentives aimed at encouraging the development of more affordable multifamily housing options. In the single-family market, inventory levels have begun to rise, which has helped to moderate price increases and could potentially draw more buyers into the market.
2024 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: Navigating Volatility with Resilience
The housing market in the Silver State is historically characterized by volatility, and the current year is proving to be no exception. Nevertheless, inventory levels are being managed, and housing construction remains robust. While affordability continues to be a concern, price increases have moderated, which is beneficial for buyers though less so for sellers. Property taxes are low, and despite a recent uptick in foreclosure activity, home equity levels remain healthy.
2024 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 Challenge a Hot Market
Home prices in the Garden State experienced a significant surge last year, reflecting the continued dynamism of the housing market. Affordability could certainly be improved, but it is not entirely out of sync with median incomes. However, New Jersey levies the second-highest property taxes in the country, surpassed only by Illinois, and the state also contends with a relatively high foreclosure rate.
2024 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: Strong Growth Amidst Tight Supply
Homebuilders are actively engaged in construction in the Tar Heel State, which ranks second nationally in the number of housing starts, trailing only the rapidly growing state of Alabama. Despite this activity, inventory levels remain tight enough to sustain strong price appreciation. Property taxes are considered reasonable, particularly when viewed in the context of the state’s rapid population growth.
2024 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: A Mixed Bag of Strengths and Weaknesses
Sellers continue to realize solid gains in the Grand Canyon State, even as the supply of homes increases. Construction activity is vigorous, and homeowners have built up substantial equity. Property taxes are low, but this is counterbalanced by a general lack of housing affordability.
2024 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: Affordability Meets Rising Prices
Home prices are on the rise in the Palmetto State, yet the housing market remains relatively affordable. This price appreciation is likely spurring increased construction activity, which is one reason inventory levels are climbing. Property taxes are low. However, home equity could be stronger, and the rate of foreclosures is on the higher side.
2024 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 Challenging Market at the Top
The Sunshine State’s housing market is notoriously difficult to assess, but one thing is clear: home values are appreciating, and builders are working diligently to meet demand as new residents continue to flock to the state. Property taxes, while not the lowest, help to offset some of the state’s persistent affordability issues. Some emerging trends are more concerning, such as the rise in foreclosures and an increasing number of homeowners with negative equity.
Furthermore, the state is currently navigating a significant insurance crisis that carries substantial implications for home values and affordability. The risks posed by climate change in Florida, including potential damage to the housing stock, are very real. Nevertheless, for the time being, the Florida real estate market is managing to strike a reasonable, albeit precarious, balance, which is contributing to the strength of the nation’s most robust overall economy.
2024 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
Interested in understanding how your state stacks up in the broader economy? Explore the full 2024 America’s Top States for Business rankings to see where your community stands.
