Abstract：Mortgage rates and low inventory are making real estate decisions hard for homebuyers across the U.S., but value can be found in these 10 state housing markets.
- Tight inventories and higher than average interest rates have put a damper on the housing market, but there are pockets of strength in some states.
- CNBC measures the health of each state‘s housing market each year as part of the annual America’s Top States for Business study.
- States are scored based on the overall balance of their housing market, including inventory, affordability, and price appreciation.
These have been challenging times for homebuyers and sellers alike.
Mortgage rates have moderated in recent months, but they are still roughly twice where they were before the pandemic. Inventories have begun to grow, but prices are still up 60% since 2019, according to the Harvard Joint Center for Housing Studies. The U.S. single-family median home price of $412,500 at the end of 2024 was five times the median household income, signaling an affordability crisis that the Harvard researchers deemed “shocking.”
Meanwhile, existing home sales last year hit a 30-year low; homebuilders are slashing prices at the highest rate in years; and they are doing so at a time when nearly one-third of housing markets nationally are experiencing declining prices.
As discouraging as these figures are, there are pockets of strength in a handful of states, as revealed in CNBC's 2025 America's Top States for Business study. Because companies looking to attract the best workforce consider the housing market when deciding where to locate, we measure the market as part of the study's Economy category — the most important category under our this year's methodology.
To identify the healthiest housing markets, we looked for a balance of affordability and value. We considered price appreciation year over year and seller gains, as well as affordability, property taxes, inventory, and housing starts. We also looked for signs of stress, like foreclosure activity and underwater mortgages.
These ten states offer relative stability to homeowners in a turbulent real estate market.
10. Hawaii
With a median sale price roughly 45% higher than the national average, it may be hard to imagine the Aloha State on a list of attractive housing markets. But there are a few things to be said for Hawaii. Inventory is among the best in the country. Price appreciation slowed last year, but sellers can make good money over time. The average gain last year was 86%, according to real estate data firm ATTOM, compared to an average 53.8% profit nationally. And the effective property tax rate — the tax paid as a percentage of the home's value — is the lowest in the country.
2025 Economy Rank: No. 39 (Top States Grade: D+)
Appreciation (Q4 2023-Q4 2024):3.98%
Inventory (May 2025):7 months
Affordability Rank: No. 40
Effective Property Tax Rate: 0.33%
Median Sale Price (2024): $752,900
9. New Hampshire
An analysis in December from the Pioneer Institute found New Hampshire is the third most popular destination for people fleeing the high costs in neighboring Massachusetts. Home prices are increasing steadily according to the Federal Housing Finance Agency, and sellers are enjoying healthy gains, according to ATTOM. They made an average of nearly 83% on their purchases, compared to the average of 53.8% profit nationally. New Hampshire does have an affordability problem, however. According to the National Association of Home Builders, 86% of households cannot afford the median home price. And effective property taxes are the seventh highest in the nation.
2025 Economy Rank: No. 23 (Top States Grade: C)
Appreciation: 7.31%
Inventory: 3 months
Affordability Rank: No. 42
Effective Property Tax Rate: 1.2%
Median Sale Price: $513,000
8. South Dakota
The Mount Rushmore State is a rock of stability as far as its housing market is concerned. South Dakota has ample inventory, and foreclosure activity is minimal. Year-to-year price appreciation is not great, but sellers are making money over time — about 54% over their initial investment. Property taxes are on the high side.
2025 Economy Rank: No. 36 (Top States Grade: C–)
Appreciation: 2.86%
Inventory: 3 months
Affordability Rank: No. 14
Effective Property Tax Rate: 0.99%
Median Sale Price: $333,000
7. Idaho
The Gem State is attracting lots of working age adults, which helps explain why Idaho leads the nation in housing starts, according to Census data. The state is having mixed results keeping up with that demand. Inventory is tight with only three months of supply available. But it is slightly higher than it was a year ago, with a nearly 8% increase in homes for sale, according to Redfin. They are still on the pricey side, however. The state ranks low for affordability.
2025 Economy Rank: No. 7 (Top States Grade: B)
Appreciation: 6.52%
Inventory: 3 months
Affordability Rank: No. 31
Effective Property Tax Rate: 0.41%
Median Sale Price: $495,400
6. North Carolina
Homebuyers are making tracks to the Tar Heel State, and that is keeping home builders busy. However, inventories are tightening in North Carolina after flooding from Hurricane Helene last fall damaged or destroyed 100,000 homes in the western part of the state. Price appreciation statewide is relatively muted, but sellers are still seeing a decent return on their investments.
2025 Economy Rank: No. 3 (Top States Grade: A–)
Appreciation: 4.77%
Inventory: 3 months
Affordability Rank: No. 14
Effective Property Tax Rate: 0.59%
Median Sale Price: $387,700
5. Arizona
The Grand Canyon State's booming growth is helping to fuel a housing construction boom. Arizona ranks fourth in housing starts, according to Census data. That is helping the state maintain a decent amount of inventory, even as new residents pour in. But it may also be dampening seller profits, with price appreciation among the lowest in the country.
2025 Economy Rank: No. 13 (Top States Grade: B–)
Appreciation: 1.22%
Inventory: 4 months
Affordability Rank: No. 48
Effective Property Tax Rate: 0.41%
Median Sale Price: $451,600
4. Nevada
Homeowners in the Silver State pay among the lowest property taxes in the nation. One reason is that unlike most states, where the value of a home for property tax purposes resets when the home is sold, buyers in Nevada inherit the previous valuation. This system has repeatedly come under attack amid school funding shortfalls, but legislators left it alone again this year. The low taxes have done little to alleviate a rise in foreclosures this year.
2025 Economy Rank: No. 17 (Top States Grade: C+)
Appreciation: 6.66%
Inventory: 4 months
Affordability Rank: No. 22
Effective Property Tax Rate: 0.48%
Median Sale Price: $465,800
3. Montana
Big Sky Country was a big recipient during the Great Migration during and after the pandemic, and people are still moving there. Inventory is starting to shrink a bit, but there is an ample supply of homes to buy. Prices have begun leveling off, but appreciation is still strong. Montana does have affordability issues, however. According to the National Association of Home Builders, 87% of households are unable to afford the median home price. That is among the highest percentages in the nation.
2025 Economy Rank: No. 23 (Top States Grade: C)
Appreciation: 6.78%
Inventory: 5 months
Affordability Rank: No. 44
Effective Property Tax Rate: 0.71%
Median Sale Price: $525,700
2. Tennessee
Home sellers did exceedingly well last year in the Volunteer State, notching an 87% gain over the previous sale price, according to ATTOM. Tennessee homeowners also enjoy one of the lowest effective property tax rates in the country, according to ATTOM. Inventory remains relatively healthy.
2025 Economy Rank: No. 21 (Top States Grade: C)
Appreciation: 4.75%
Inventory: 4 months
Affordability Rank: No. 13
Effective Property Tax Rate: 0.46%
Median Sale Price: $402,900
1. Vermont
The Green Mountain State is America's best housing market, with a healthy supply of homes for sale. While inventories have begun to tighten as homebuying season hits its peak, the number of homes for sale in Vermont is up more than 19% from a year ago, according to Redfin. That is good for buyers, but sellers can feel good about one of the best price appreciation rates in the nation. Property taxes are on the high side, according to ATTOM.
2025 Economy Rank: No. 35 (Top States Grade: C–)
Appreciation: 8.09%
Inventory: 4 months
Affordability Rank: No. 4
Effective Property Tax Rate: 1.2%
Median Sale Price: $443,600
