Housing affordability is about average in The First State, but your Delaware housing dollar gets a big boost from very low property taxes. Delaware homeowners paid an effective tax rate of less than half a percent, according to real estate data firm ATTOM. That is the fourth-lowest in the country. The state has an Economy Rank of No. 10 with a Top States Grade of B-. With an appreciation rate of 4.73%, inventory of 2 months, an affordability score of 0.56, and a median sales price of $360,700, Delaware is a state to consider for affordable housing options.
The Hoosier State offers a rare combination of affordability, including low property taxes, as well as healthy price appreciation. Inventory remains tight, but Indiana homebuyers are still finding what they are looking for at an attractive price. With an Economy Rank of No. 19 and a Top States Grade of C, Indiana boasts an appreciation rate of 8.02%, inventory of 2 months, an affordability score of 0.81, and a median sales price of $265,300.
The Peach State: Georgia
Home inventories are building in The Peach State, which is good for affordability. Homebuilders have been active as well. Still, price appreciation remains healthy. With an Economy Rank of No. 7 and a Top States Grade of B, Georgia has an appreciation rate of 7.16%, inventory of 3 months, an affordability score of 0.59, and a median sales price of $385,600.
The Volunteer State: Tennessee
Despite some of the lowest property taxes in the country, affordability is an issue in The Volunteer State. A new law includes incentives for more affordable housing in multifamily units. With an Economy Rank of No. 3 and a Top States Grade of B+, Tennessee has an appreciation rate of 6.24%, inventory of 3 months, an affordability score of 0.49, and a median sales price of $393,000.
The Silver State: Nevada
The Silver State’s housing market is historically volatile, and this year is no exception. But inventory is manageable, and housing construction is active. While affordability continues to be an issue, prices have moderated — good for buyers, not for sellers. With an Economy Rank of No. 8 and a Top States Grade of B, Nevada has an appreciation rate of 3.39%, inventory of 2 months, an affordability score of 0.43, and a median sales price of $458,300.
The Garden State: New Jersey
Home prices surged in The Garden State last year as the housing market remains active. Affordability could be better, but it is not out of line with median income. However, New Jersey has the second-highest property taxes in the nation after Illinois, and a high foreclosure rate. With an Economy Rank of No. 17 and a Top States Grade of C+, New Jersey has an appreciation rate of 11.38%, inventory of 2 months, an affordability score of 0.56, and a median sales price of $532,400.
Home builders are busy in The Tar Heel State, with the second-highest level of housing starts last year after fast-growing Alabama. But inventory is still tight enough to keep price appreciation strong. With an Economy Rank of No. 4 and a Top States Grade of B+, North Carolina has an appreciation rate of 6.98%, inventory of 2 months, an affordability score of 0.52, and a median sales price of $383,700.
The Grand Canyon State: Arizona
Sellers continue making decent gains in The Grand Canyon State, even as home inventory builds. Construction activity is strong, and home equity is healthy. With an Economy Rank of No. 5 and a Top States Grade of B+, Arizona has an appreciation rate of 6.63%, inventory of 3 months, an affordability score of 0.44, and a median sales price of $450,800.
The Palmetto State: South Carolina
Home prices are rising in The Palmetto State, but housing remains relatively affordable. That price appreciation may be bringing more construction activity, which is one reason inventory levels are rising. With an Economy Rank of No. 12 and a Top States Grade of B-, South Carolina has an appreciation rate of 9.42%, inventory of 3 months, an affordability score of 0.61, and a median sales price of $387,700.
The Sunshine State’s housing market is notoriously tricky to gauge, but home values are appreciating, and homebuilders are busy trying to meet the demand as new residents pour into the state. Property taxes, while not the lowest, help counteract the state’s ongoing affordability issues. Some trends are more concerning, like rising foreclosures and a growing number of underwater mortgages. Florida holds an Economy Rank of No. xxx.
Overall, the housing market in the United States is facing a variety of challenges, from affordability to property taxes to inventory levels. Each state offers a unique mix of benefits and drawbacks for prospective homebuyers, and it is essential to carefully consider all factors before making a decision. By analyzing the state-by-state housing market, individuals can make informed choices to find the best bang for their buck in the real estate market.