Here are the top 10 housing markets by state. With remote work increasing after COVID, it is easier to move to a better location that suits you more. If you are not sure where to move, check out these states with healthy housing markets, where you can make a smart purchase and enjoy a happy home.
CNBC’s Review of the Top 10 Housing Markets by State
CNBC’s review of the top 10 housing markets by state considered multiple factors including price appreciation, housing starts, foreclosure rates, and affordability. It also included as a metric NAR’s Affordability Distribution Score, which analyzes the affordability of homes for sale across all income levels, as of the end of 2022. A score of 1 or higher generally suggests a housing market that is affordable. As the score falls below 1, it indicates a less affordable market without enough listings in local buyers’ range.
Check out these 10 states to find the best value for your housing purchase.
Alabama is 10 in this Housing Market Survey
Prices are rising by double digits (10.25% according to the Federal Housing Finance Agency) but housing is still relatively affordable. Foreclosure activity in Alabama is still low, according to Attom Data Solutions, though a concerning percentage of mortgages are at risk of default. 1 in 5934 homes is in foreclosure and 3.8% of mortgages are underwater in Alabama.
Wisconsin, Ohio, New Jersey, Indiana and Georgia Are All Tied in the Top 10 Housing Markets
CNBC weights Wisconsin, Ohio, New Jersey, Indiana and Georgia equally.
Wisconsin is seeing healthy price appreciation (10.03%) and relatively low foreclosure activity (1 in 8769). According to Redfin, the number of homes sold in Wisconsin fell by 20.9% in May, more than the national average of 15.8% But that is likely to help already strong affordability.
Ohio lays claim to the title of America’s most affordable housing, according to the National Association of Realtors, though it comes with lower price appreciation (8.3%). Home buyers in Ohio are also benefitting from the state’s a high foreclosure rate (1 in 2478) and rising number of underwater mortgages (5%).
New Jersey’s housing market started 2023 well-balanced as home builders generally kept pace with demand with 4 housing starts per 1000 people. Housing helped make New Jersey this year’s Most-Improved State for Business, and underwater mortgages have been low (2.8%), but an uptick in foreclosures (1 in 2257) this spring could be a sign of trouble.
Indiana began 2023 with solid affordability even as home prices rose. Appreciation in Indian is 9.5% while underwater mortgages are 3.3% in the first quarter of 2023. However foreclosures are rising with 1 in 3101 being on notice .
Georgia is the last of the states tied for sixth place in the top 10 housing markets for affordability. Georgia is seeing double-digit price appreciation (11.4%) while remaining relatively affordable. But rising foreclosures in the state (1 in 3506) suggest some possible signs of stress.
North Carolina Ranks 4th
North Carolina is attracting businesses and people with a ranking as this year’s overall No. 1 State for Business. , The population growth and resulting housing demand is boosting prices. Strong construction activity in North Carolina (8.7 per 1000 population) is helping to meet that demand, but not enough to keep homes within reach for much of the growing population. Appreciation is 13.4% and underwater foreclosures are 2.5%.
Maine is Number 3
Home buyers are moving to Maine and sending prices upward. Appreciation is 12.2%. New home starts in Maine hit 5.2 per thousand while underwater mortgages were low with 2.5%. As a result, affordability has not gotten out of hand in Maine.
South Carolina at Number 2
Homeowners in South Carolina saw solid price appreciation going into 2023 (13%). But prices in South Carolina are still affordable, especially relative to the rest of the region. Homebuilders are meeting demand 8.8 starts per 1000 population. But rising foreclosures are at 1 in 2691 homes.
Florida is Number 1
As new Floridians move in, they have been sending prices soaring with an appreciation rate of 15.2%. Homebuilders have responded in return with a housing start rate of 9.7 per thousand. Underwater mortgages are rare at 1.2%, but rising foreclosures could be a sign of stress with 1 in 2470.
Bottom Line
If you are a homeowner in the DC metro area and contemplating a move to one of these booming but affordable states, you may want to sell your home here. In that case we should talk. I can help you sell your DC area home and find you a great realtor in your new state. Please reach out to me by email, lise@lisehowe.com or call me at 240-401-5577. If you want to find the value of your current home, just click here.
