These have been challenging times for homebuyers and sellers alike.<\/p>\n
Mortgage rates have moderated<\/a> 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<\/a>. 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.”<\/p>\n Meanwhile, existing home sales last year hit a 30-year low; homebuilders are slashing prices<\/a> at the highest rate in years; and they are doing so at a time when nearly one-third of housing markets nationally<\/a> are experiencing declining prices.<\/p>\n 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<\/a> 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 \u2014 the most important category under our this year’s methodology<\/a>.<\/p>\n 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.<\/p>\n These ten states offer relative stability to homeowners in a turbulent real estate market.<\/p>\n 10. Hawaii<\/p>\n Houses on Lanikai beach in Oahu, Honolulu, Hawaii.<\/p>\n Patrick Baz | Afp | Getty Images<\/p>\n 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<\/a>. 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<\/a> nationally. And the effective property tax rate \u2014 the tax paid as a percentage of the home’s value \u2014 is the lowest in the country.<\/p>\n 2025 Economy Rank: <\/strong>No. 39 (Top States Grade: D+)<\/p>\n Appreciation <\/strong>(Q4 2023-Q4 2024): <\/strong>3.98%<\/p>\n Inventory <\/strong>(May 2025): <\/strong>7 months<\/p>\n Affordability Rank: <\/strong>No. 40<\/p>\n Effective Property Tax Rate: <\/strong>0.33%<\/p>\n Median Sale Price <\/strong>(2024): <\/strong>$752,900<\/p>\n 9. New Hampshire<\/p>\n A home made wreath decorates a country barn window, May 10, 2025, outside of Chatham, New Hampshire. <\/p>\n Andrew Lichtenstein | Corbis News | Getty Images<\/p>\n An analysis in December from the Pioneer Institute<\/a> 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<\/a>, 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<\/a> 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.<\/p>\n 2025 Economy Rank: <\/strong>No. 23 (Top States Grade: C)<\/p>\n Appreciation: <\/strong>7.31%<\/p>\n Inventory: <\/strong>3 months<\/p>\n Affordability Rank: <\/strong>No. 42<\/p>\n Effective Property Tax Rate: <\/strong>1.2%<\/p>\n Median Sale Price: <\/strong>$513,000<\/p>\n 8. South Dakota<\/p>\n Frontier home outside Custer State Park, South Dakota. <\/p>\n Visions Of America | Universal Images Group | Getty Images<\/p>\n The Mount Rushmore State is a rock of stability as far as its housing market is concerned. South Dakota<\/a> has ample inventory, and foreclosure activity is minimal. Year-to-year price appreciation is not great, but sellers are making money over time \u2014 about 54% over their initial investment. Property taxes are on the high side.<\/p>\n 2025 Economy Rank: <\/strong>No. 36 (Top States Grade: C\u2013)<\/p>\n Appreciation: <\/strong>2.86%<\/p>\n Inventory: <\/strong>3 months<\/p>\n Affordability Rank: <\/strong>No. 14<\/p>\n Effective Property Tax Rate: <\/strong>0.99%<\/p>\n Median Sale Price: <\/strong>$333,000<\/p>\n 7. Idaho<\/p>\n A home in a residential neighborhood in Moscow Idaho.<\/p>\n Ucg | Universal Images Group | Getty Images<\/p>\n The Gem State is attracting lots of working age adults, which helps explain why Idaho<\/a> leads the nation in housing starts, according to Census<\/a> 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<\/a> in homes for sale, according to Redfin. They are still on the pricey side, however. The state ranks low for affordability.<\/p>\n 2025 Economy Rank: <\/strong>No. 7 (Top States Grade: B)<\/p>\n Appreciation: <\/strong>6.52%<\/p>\n Inventory: <\/strong>3 months<\/p>\n Affordability Rank: <\/strong>No. 31<\/p>\n Effective Property Tax Rate: <\/strong>0.41%<\/p>\n Median Sale Price: <\/strong>$495,400<\/p>\n 6. North Carolina<\/p>\n Flat Rock, North Carolina, townhouses apartment complex under construction, aerial view with Blue Ridge Mountains. <\/p>\n Jeff Greenberg | Universal Images Group | Getty Images<\/p>\n Homebuyers are making tracks to the Tar Heel State, and that is keeping home builders busy. However, inventories are tightening in North Carolina<\/a> after flooding from Hurricane Helene<\/a> 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.<\/p>\n 2025 Economy Rank: <\/strong>No. 3 (Top States Grade: A\u2013)<\/p>\n Appreciation: <\/strong>4.77%<\/p>\n Inventory: <\/strong>3 months<\/p>\n Affordability Rank: <\/strong>No. 14<\/p>\n Effective Property Tax Rate: <\/strong>0.59%<\/p>\n Median Sale Price: <\/strong>$387,700<\/p>\n 5. Arizona<\/p>\n An aerial view of homes in the Phoenix suburbs on June 9, 2023 in Queen Creek, Arizona. Queen Creek is one of the fastest growing communities in Arizona.<\/p>\n Mario Tama | Getty Images<\/p>\n The Grand Canyon State’s booming growth is helping to fuel a housing construction boom. Arizona<\/a> 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.\u00a0<\/p>\n 2025 Economy Rank: <\/strong>No. 13 (Top States Grade: B\u2013)<\/p>\n Appreciation: <\/strong>1.22%<\/p>\n Inventory<\/strong>: 4 months<\/p>\n Affordability Rank: <\/strong>No. 48<\/p>\n Effective Property Tax Rate: <\/strong>0.41%<\/p>\n Median Sale Price: <\/strong>$451,600<\/p>\n 4. Nevada<\/p>\n Lake Las Vegas, a grouping of several gated communities (3,500 residents), resorts, water features, and golf courses on 350 acres located between Lake Mead and Las Vegas is viewed on July 13, 2022 in Henderson, Nevada. <\/p>\n George Rose | Getty Images News | Getty Images<\/p>\n 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<\/a> inherit the previous valuation. This system has repeatedly come under attack amid school funding shortfalls, but legislators left it alone<\/a> again this year. The low taxes have done little to alleviate a rise in foreclosures this year.<\/p>\n 2025 Economy Rank: <\/strong>No. 17 (Top States Grade: C+)<\/p>\n Appreciation: <\/strong>6.66%<\/p>\n Inventory<\/strong>: 4 months<\/p>\n Affordability Rank: <\/strong>No. 22<\/p>\n Effective Property Tax Rate: <\/strong>0.48%<\/p>\n Median Sale Price: <\/strong>$465,800<\/p>\n 3. Montana<\/p>\n Gardiner, Montana, a small town outside of Yellowstone National Park.<\/p>\n James Leynse | Corbis Historical | Getty Images<\/p>\n 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<\/a> does have affordability issues, however. According to the National Association of Home Builders<\/a>, 87% of households are unable to afford the median home price. That is among the highest percentages in the nation.<\/p>\n 2025 Economy Rank: <\/strong>No. 23 (Top States Grade: C)<\/p>\n Appreciation: <\/strong>6.78%<\/p>\n Inventory<\/strong>: 5 months<\/p>\n Affordability Rank: <\/strong>No. 44<\/p>\n Effective Property Tax Rate: <\/strong>0.71%<\/p>\n Median Sale Price: <\/strong>$525,700<\/p>\n 2. Tennessee<\/p>\n A new housing development under construction in Gallatin, Tennessee, U.S.<\/p>\n Seth Herald | Bloomberg | Getty Images<\/p>\n Home sellers did exceedingly well last year in the Volunteer State, notching an 87% gain over the previous sale price, according to ATTOM. Tennessee<\/a> homeowners also enjoy one of the lowest effective property tax rates in the country, according to ATTOM. Inventory remains relatively healthy.<\/p>\n 2025 Economy Rank: <\/strong>No. 21 (Top States Grade: C)<\/p>\n Appreciation: <\/strong>4.75%<\/p>\n Inventory<\/strong>: 4 months<\/p>\n Affordability Rank: <\/strong>No. 13<\/p>\n Effective Property Tax Rate: <\/strong>0.46%<\/p>\n Median Sale Price: <\/strong>$402,900<\/p>\n