America is in the grip of a housing crisis. Housing supply is tight. The supply of affordable housing is even tighter, and persistently high mortgage rates are making the situation worse. But the extent of the problem varies from state to state.
That’s why companies consider the local residential real estate market when deciding where to locate. They want future employees to find an affordable place to live that is also a good investment. This makes the real estate market an important part of the competitiveness of national enterprises.
CNBC views housing market as part of economic category America’s Best States for Business, an annual ranking of all 50 states. Next year method, states are graded based on a balance of affordability and value. We consider price appreciation and seller gains, and Affordability, Inventory and Housing Starts. We also look for signs of stress, such as foreclosure activity and underwater activity Mortgage.
While every buyer and seller has different priorities, these ten states have real estate markets that can get you the most bang for your buck.
10.Delaware
Aerial photo of senior housing in Brookside, Delaware, USA
Felix Mizioznikov | Stocks | Getty Images
Housing affordability in the First State is about average, but yours delaware Extremely low property taxes have significantly boosted home prices. Delaware homeowners pay an effective tax rate of less than half a percent, according to real estate data firm Atom. This is the fourth lowest level in the country.
2024 Economic Ranking: 10th (Top State Grade: B-)
appreciate: 4.73%
stock (July): 2 months
affordability score (0 to 2, 2 is the most affordable): 0.56
Effective property tax rate: 0.43%
Median sales price: $360,700
9. Indiana
Exterior of a ranch house in a community in Indiana, Midwestern United States
Travel Boom | Stocks | Getty Images
this Indiana Offering a rare combination of affordability including low property taxes coupled with healthy price appreciation. Inventory remains tight, but Indiana homebuyers are still finding what they’re looking for at attractive prices.
2024 Economic Ranking: 19th (Top State Grade: C)
appreciate: 8.02%
stock (July): 2 months
Affordability Score: 0.81
Effective property tax rate: 0.86%
Median sales price: $265,300
8. Georgia
Sign outside house for sale in Atlanta, Georgia, USA
Elijah Nouvelage | Elijah Nouvelage Bloomberg | Getty Images
Housing inventory is increasing Taozhou, which is good for affordability. Homebuilders are also active. Still, prices are rising healthily.
2024 Economic Ranking: 7th Place (Top State Grade: B)
appreciate: 7.16%
stock (July): 3 months
Affordability Score: 0.59
Effective property tax rate: 0.82%
Median sales price: $385,600
7. Tennessee
Cynthia Holzapfel gestures as she describes the downstairs unit of her home in Summertown, Tennessee, on June 15, 2024. Holzapfel rents out her downstairs unit to families of all ages.
Kevin Worm | The Washington Post | Getty Images
Although property taxes are some of the lowest in the country, affordability remains an issue volunteer nation. a new one law Includes incentives for more affordable housing in multifamily units. In the single-family home market, inventory has begun to build, which is keeping price gains in check and potentially attracting more buyers to the market.
2024 Economic Ranking: 3rd Place (Top State Grade: B+)
appreciate: 6.24%
stock (July): 3 months
Affordability Score: 0.49
Effective property tax rate: 0.44%
Median sales price: $393,000
6. Nevada
In this aerial photo taken in Las Vegas, Nevada, USA, a contractor works on a house under construction in the Southern Highlands master-planned community of Versilia
Roger Kisby | Roger Kisby Bloomberg | Getty Images
this YinzhouThe real estate market has historically been volatile, and this year is no exception. But inventories are under control and housing construction is active. While affordability remains an issue, prices have slowed — which is good for buyers but bad for sellers. Property taxes are low. Despite the increase in foreclosure activity, home equity remains healthy.
2024 Economic Ranking: 8th (Top State Grade: B)
appreciate: 3.39%
stock (July): 2 months
Affordability Score: 0.43%
Effective property tax rate: 0.48%
Median sales price: $458,300
5. New Jersey
An island community in the New Jersey shore town of Barnegat Bay.
John Robb | Electronic+ | Getty Images
House prices soar garden state The real estate market remained active last year. Affordability could be better, but it’s not out of line with median income. However, New Jersey has the second-highest property taxes in the nation, behind only Illinois, and also has a high foreclosure rate.
2024 Economic Ranking: 17th (Top State Grade: C+)
appreciate: 11.38%
stock (July): 2 months
Affordability Score: 0.56
Effective property tax rate: 1.64%
Median sales price: $532,400
4. North Carolina
Workers build houses in Lillington, North Carolina, USA
Alison Joyce | Bloomberg | Getty Images
Home builders are busy tar heel stateHousing starts last year ranked second behind fast-growing Alabama. But inventories remain tight enough to keep prices rising strongly. Property taxes are reasonable, especially given the state’s rapid growth.
2024 Economic Ranking: 4th (Top State Grade: B+)
appreciate: 6.98%
stock (July): 2 months
Affordability Score: 0.52
Effective property tax rate: 0.6%
Median sales price: $383,700
3. Arizona
A For Sale sign hangs outside a mobile home in Coyote Ranch, Friday, March 9, 2024, in Yuma, Arizona.
The Washington Post | Getty Images
Sellers continue to make substantial profits grand canyon state, even as housing inventory increases. Construction activity is strong and home equity is healthy. Property taxes are low, but so is housing affordability.
2024 Economic Ranking: No. 5 (Highest state grade: B+)
appreciate: 6.63%
stock (July): 3 months
Affordability Score: 0.44
Effective property tax rate: 0.41%
Median sales price: $450,800
2. South Carolina
Homes in the Nexton community of Somerville, South Carolina, USA
Sam Wolfe | Bloomberg | Getty Images
House prices are rising palmetto state, but housing is still relatively cheap. Rising prices may bring more construction activity, which is one reason inventory levels are rising. Property taxes are low. However, home equity may be better and foreclosures are on the higher side.
2024 Economic Ranking: 12th (Top State Grade: B-)
appreciate: 9.42%
stock (July): 3 months
Affordability Score: 0.61
Effective property tax rate: 0.5%
Median sales price: $387,700
1. Florida
A view of Duval Street in Key West, United States, on May 7, 2024.
Jakub Bolzycki | Noor Photos | Getty Images
this sunshine stateThe state’s housing market is notoriously difficult to gauge, but here’s what we know: Home values ​​are appreciating, and as new residents flood the state, homebuilders are scrambling to keep up with demand. Property taxes, while not the lowest, help offset the state’s ongoing affordability issues. Some trends are more concerning, such as an increase in foreclosures and an increase in the number of underwater mortgages.
The country is also trying to get out of trouble serious insurance crisis This has a significant impact on home values ​​and affordability. Florida’s climate risks—including risks to its housing stock—are real. But for now, Florida’s housing market is striking a fine, albeit fragile, balance that’s helping to power the nation’s strongest overall economy.
2024 Economic Ranking: 1st Place (Top State Grade: A+)
appreciate: 6.85%
stock (July): 4 months
Affordability Score: 0.44
Effective property tax rate: 0.76%
Median sales price: $420,100
