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 (something worth watching).
However, In contrast, CNBC measures the health of each state’s housing market each year as part of the annual America’s Top States for study.
Nevertheless, States are scored based on the overall balance of their housing market, including inventory, affordability, and price appreciation.
These have been challenging times for buyers and sellers a. Moreover, 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.
Single-family median price of $412,500 at the end of 2024 was five times the median household income, signaling an affordability crisis that the Harvard reers deemed "shocking (noteworthy indeed).
"Meanwhile, existing sales last year hit a 30-year low; builders are slashing prices at the highest rate in years; and they are doing so at a time when nearly one-third of housing nationally are experiencing declining prices (remarkable data).
At the same time, 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 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, we looked for a balance of affordability and value.
We considered price appreciation year over year and seller gains, as well as affordability, perty taxes, inventory, and housing starts.
However, We also looked for signs of stress, foreclosure activity and underwater mortgages. These ten states offer relative stability to owners in a turbulent real estate market.
HawaiiHouses on Lanikai beach in Oahu, Honolulu, Hawaii.
Patrick Baz | Afp | Getty ImagesWith 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 (this bears monitoring).
Furthermore, But there are a few things to be said for Hawaii. Moreover, Inventory is among the best in the country, in today's financial world.
However, 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% fit nationally. Additionally, And the effective perty tax rate — the tax paid as a percentage of the 's value — is the lowest in the country, in this volatile climate. 2025 Economy Rank: No.
39 (Top States Grade: D+)Appreciation (Q4 2023-Q4 2024): 3. 98%Inventory (May 2025): 7 monthsAffordability Rank: No. 40Effective perty Tax Rate: 0, given current economic conditions.
33%Median Sale Price (2024): $752,9009 (fascinating analysis). New HampshireA made wreath decorates a country barn window, May 10, 2025, outside of Chatham, New Hampshire.
Andrew Lichtenstein | Corbis News | Getty ImagesAn analysis in December from the Pioneer Institute found New Hampshire is the third most destination for people fleeing the high costs in neighboring Massachusetts (this bears monitoring), in this volatile climate.
Furthermore, Prices are increasing steadily according to the Federal Housing Finance Agency, and sellers are enjoying healthy gains, according to ATTOM, in light of current trends.
Nevertheless, They made an average of nearly 83% on their purchases, compared to the average of 53. 8% fit nationally.
On the other hand, New Hampshire does have an affordability blem, however (remarkable data). According to the National Association of Builders, 86% of households cannot afford the median price.
And effective perty taxes are the seventh highest in the nation. 2025 Economy Rank: No. 23 (Top States Grade: C)Appreciation: 7. Moreover, 31%Inventory: 3 monthsAffordability Rank: No.
Moreover, 42Effective perty Tax Rate: 1, given current economic conditions. Moreover, 2%Median Sale Price: $513,0008. Nevertheless, South DakotaFrontier outside Custer State Park, South Dakota.
Visions Of America | Universal Images Group | Getty ImagesThe 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, considering recent developments.
Year-to-year price appreciation is not great, but sellers are making money over time — 54% over their initial investment. Perty taxes are on the high side. 2025 Economy Rank: No.
Additionally, 36 (Top States Grade: C–)Appreciation: 2. 86%Inventory: 3 monthsAffordability Rank: No. 14Effective perty Tax Rate: 0. 99%Median Sale Price: $333,0007.
IdahoA in a residential neighborhood in Moscow Idaho.
Ucg | Universal Images Group | Getty ImagesThe Gem State is attracting lots of working age adults, which helps explain why Idaho leads the nation in housing starts, according to Census data, considering recent developments.
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 s for sale, according to Redfin. Moreover, They're still on the pricey side, however.
What the re reveals is state ranks low for affordability. 2025 Economy Rank: No. Furthermore, 7 (Top States Grade: B)Appreciation: 6.
Nevertheless, 52%Inventory: 3 monthsAffordability Rank: No, given current economic conditions. Moreover, 31Effective perty Tax Rate: 0.
Moreover, 41%Median Sale Price: $495,4006 (an important development).
Furthermore, North CarolinaFlat Rock, North Carolina, townhouses apartment complex under construction, aerial view with Blue Ridge Mountains.
On the other hand, Jeff Greenberg | Universal Images Group | Getty Imagesbuyers are making tracks to the Tar Heel State, and that is keeping builders busy.
However, inventories are tightening in North Carolina after flooding from Hurricane Helene last fall damaged or destroyed 100,000 s in the western part of the state.
However, Price appreciation statewide is relatively muted, but sellers are still seeing a decent return on their investments, in today's financial world. Additionally, 2025 Economy Rank: No.
However, 3 (Top States Grade: A–)Appreciation: 4. Additionally, 77%Inventory: 3 monthsAffordability Rank: No. Meanwhile, 14Effective perty Tax Rate: 0, in today's market environment.
59%Median Sale Price: $387,7005. ArizonaAn aerial view of s in the Phoenix suburbs on June 9, 2023 in Queen Creek, Arizona, given the current landscape.
In contrast, Queen Creek is one of the fastest growing communities in Arizona.
Mario Tama | Getty ImagesThe Grand Canyon State's booming growth is helping to fuel a housing construction boom (something worth watching).
Arizona ranks fourth in housing starts, according to Census data (this bears monitoring). Moreover, That's helping the state maintain a decent amount of inventory, even as new residents pour in.
But it may also be dampening seller fits, with price appreciation among the lowest in the country. On the other hand, 2025 Economy Rank: No. Conversely, 13 (Top States Grade: B–)Appreciation: 1.
22%Inventory: 4 monthsAffordability Rank: No. 48Effective perty Tax Rate: 0 (which is quite significant). 41%Median Sale Price: $451,6004.
However, NevadaLake Las Vegas, a grouping of several gated communities (3,500 residents), res, water features, and golf courses on 350 acres located between Lake Mead and Las Vegas is viewed on July 13, 2022 in Henderson, Nevada (quite telling), given current economic conditions.
Nevertheless, George Rose | Getty Images News | Getty Imagesowners in the Silver State pay among the lowest perty taxes in the nation.
One reason is that un most states, where the value of a for perty tax purposes resets when the is sold, buyers in Nevada inherit the previous valuation.
Conversely, 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 (noteworthy indeed). 2025 Economy Rank: No. 17 (Top States Grade: C+)Appreciation: 6, in this volatile climate.
However, 66%Inventory: 4 monthsAffordability Rank: No. Moreover, 22Effective perty Tax Rate: 0. 48%Median Sale Price: $465,8003.
Moreover, MontanaGardiner, Montana, a small town outside of Yellowstone National Park.
On the other hand, James Leynse | Corbis Historical | Getty ImagesBig Sky Country was a big recipient during the Great Migration during and after the pandemic, and people are still moving there.
On the other hand, Inventory is starting to shrink a bit, but there is an ample supply of s to buy. Prices have begun leveling off, but appreciation is still strong.
Montana does have affordability issues, however (noteworthy indeed). According to the National Association of Builders, 87% of households are unable to afford the median price.
That's among the highest percentages in the nation. Additionally, Meanwhile, 2025 Economy Rank: No. 23 (Top States Grade: C)Appreciation: 6. 78%Inventory: 5 monthsAffordability Rank: No.
Conversely, 44Effective perty Tax Rate: 0. 71%Median Sale Price: $525,7002. TennesseeA new housing development under construction in Gallatin, Tennessee, U.
Seth Herald | Bloomberg | Getty Images sellers did exceedingly well last year in the Volunteer State, notching an 87% gain over the previous sale price, according to ATTOM.
Tennessee owners also enjoy one of the lowest effective perty tax rates in the country, according to ATTOM. Moreover, Inventory remains relatively healthy. 2025 Economy Rank: No.
21 (Top States Grade: C)Appreciation: 4. Furthermore, 75%Inventory: 4 monthsAffordability Rank: No. 13Effective perty Tax Rate: 0 (this bears monitoring). 46%Median Sale Price: $402,9001.
VermontCharming red house flanked by autumn foliage in Bridgewater, Vermont.
Furthermore, John Greim | Lightrocket | Getty ImagesThe Green Mountain State is America's best housing market, with a healthy supply of s for sale.
While inventories have begun to tighten as buying season hits its peak, the number of s for sale in Vermont is up more than 19% from a year ago, according to Redfin.
That's good for buyers, but sellers can feel good one of the best price appreciation rates in the nation (noteworthy indeed), amid market uncertainty.
On the other hand, Perty taxes are on the high side, according to ATTOM. 2025 Economy Rank: No, amid market uncertainty. Furthermore, 35 (Top States Grade: C–)Appreciation: 8.
09%Inventory: 4 monthsAffordability Rank: No. 4Effective perty Tax Rate: 1.
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