10 Best States to Invest in Real Estate & 5 Worst in 2024

Table Of Content

• What To Look For When Buying A House: A Guide For Home Buyers
• Best states for first-time homebuyers
• worst states for first-time homebuyers plus key factors
• #5. Nevada – Average Home Value: $418,583
• Cheapest ZIP Codes for Housing in Every State
• Complete Data & Rankings for Each State
• #1. Pennsylvania – Average Home Value: $254,802

Cleveland offers even more affordability with a median sale price of $100,833. Montclair might have one of the highest median listing prices in the study, but it’s still over $100,000 below the same area’s median home values, so it could be a bargain. And if you’re looking in New Jersey, that and a high livability score aren’t the only reason to pick Montclair over Newark as Newark is the city in the greatest danger of a housing crisis. This ranking was based on each state’s job growth, population growth, and happiness score. A growing economy creates jobs, which increases the population as more people are drawn to the state for employment opportunities. This causes a demand for housing and a higher happiness of living that includes events, shopping, and dining options.

What To Look For When Buying A House: A Guide For Home Buyers

Remote workers can also check out the Tulsa Remote program, an initiative that can earn its winners $10,000 in grants if they move to Tulsa to work remotely or start a business. “Buyers should consider broadening their home search to more affordable areas. Or, instead of moving out of state, explore looking for a home in an adjacent county where homes may be less expensive,” Evangelou recommends. That projected return of over 9 percent in the first year alone is among the best in the study, but that could just be a symptom of how buying a home in Tennessee is often a pretty solid investment.

Best states for first-time homebuyers

With affordable housing options, a low cost of living, and a warm community spirit, Kentucky provides an inviting atmosphere for homebuyers. Thinking about buying real estate, either as a primary residence or investment property? The capital, Charleston, offers a variety of homes between 1,000 and 3,000 square feet under $150,000.

worst states for first-time homebuyers plus key factors

Ohio consistently ranks highly on various “best of” lists, including having a significant number of top-ranked school districts. Offering a mix of large cities and small towns, Indiana provides something for everyone. With a low cost of living, friendly residents, a relatively low crime rate, and four-season weather, the state encourages people to appreciate each season as it unfolds. Almost 3 million people agree with Dorothy – when it comes to Kansas, there’s no place like home. From its cultural offerings, small town communities, tallgrass prairies and, of course, affordability, there’s plenty of reasons people love to call the Sunflower State home.

#5. Nevada – Average Home Value: $418,583

Additionally, Nevada has no state income tax, making it an attractive choice for those seeking financial benefits. With the average home value in the U.S. currently at $346,048, it’s important to consider cost-effective options for homeownership without compromising on quality of life. We have carefully ranked these states from 1 to 10, based on affordability, quality of life, economic opportunities, home value growth estimates, and the Zillow Home Value Index (ZHVI) as of January 2024. This credit card is not just good – it’s so exceptional that our experts use it personally.

Cheapest ZIP Codes for Housing in Every State

Working with an adviser may come with potential downsides such as payment of fees (which will reduce returns). There are no guarantees that working with an adviser will yield positive returns. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest. When you’ve done your research, created a budget and weighed the pros and cons, you’ll have better prepared yourself to buy a house. When you’re ready, get started on an application today and take one step closer to homeownership. We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.

Complete Data & Rankings for Each State

Pennsylvania offers a diverse range of cities and rural areas, making it suitable for various lifestyles. With a rich history, vibrant culture, and affordable home prices, it presents an attractive option for homebuyers. Additionally, the state provides excellent educational institutions and a strong job market. The right choice will depend on your needs, lifestyle and individual goals. If price is one of the factors that will determine the home you buy and the area you purchase it in, don’t just make your decision based on home price. Consider homeowners insurance, property taxes and the area’s cost of living, too.

It’s important to note that affordability factors can vary widely and our list is based on the median sale price in the 10 cheapest states to buy a house. We have also included some general metrics and the median days on market to give you a better idea of how active the real estate market is in each particular state. Property appreciation and growing rental income are strong indicators of a state’s need for housing.

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It is true that you can get houses in Louisville, the biggest city in Kentucky. Whether a condo or a stand-alone bungalow is right for your family, the Kentucky Derby destination has hot homes within budget. Alternatively, opt for a move-in ready home measuring around 1,000 square feet for under $150,000 in Lexington, the second-largest city in the state. Ask Muoki Musau, a Realtor with Houwzer, and he’ll tell you that the biggest influences on affordability are the state’s economy, wages, and unemployment rates. Parkersburg is a great buyer’s market for its area, and the low listing price is a clear indication of why West Virginia is one of the states where millennials can actually afford to buy a home.

This table ranks the 10 cheapest states to buy a house for the first time, ranked by 12-month average median sale price. It also notes the number of programs available to first-time homebuyers, the 2021–2022 percent price change and the cost of living for each. In North Carolina, the median home value is roughly $275,500, which is up 19.63% over a one-year period between 2021 and 2022. For prospective homebuyers, this state has the ninth-lowest closing costs ($2,904, typically making up less than 1.5% of the home’s value). Median annual property taxes are also on the lower side, ranking No. 14 at $1,668.

Homeownership in Indiana is relatively attainable for the average household. In 2018, the home value to income ratio was 2.64, the second-lowest in our study. Indiana additionally ranks well for its low property taxes, closing costs and homeowners insurance. The median annual figure paid in property taxes in Indiana is $1,214, the eighth-lowest across all 50 states.

The average monthly rental income is the 18th lowest in the country ($873), and it has a very low percentage of renters (23.8%), ranking 48th, which doesn’t provide much profitability for investors. Y-o-Y home (9.60%) and rent (3.80%) values were fairly high, ranking seventh and 24th-highest, respectively, so investors might have some potential in Maine. Also, combined with a negative Y-o-Y rent value change of -2.36% (40th), there is a slight opportunity for growth down the line.

The money we make helps us give you access to free credit scores and reports and helps us create our other great tools and educational materials. Despite its low-ranking public school system, Mississippi has its own appeal. It boasts warm weather, friendly people, delicious food, and a low cost of living. Whether for work, retirement, or family, Mississippi allows individuals to save money each month. North Carolina boasts a desirable combination of natural beauty, a mild climate, and a thriving economy.

These data indicate that residents have a lot of career opportunities and are satisfied with their living environment, encouraging people to relocate to the state. The state ranks 22nd overall for its employment, happiness score, and population growth, displaying a moderately paced upward trend. Furthermore, Georgia has the fifth-highest available home inventory (28,952) and a low tax burden at 8.90% (eighth lowest), encouraging individuals to relocate there. Regarding job growth, population, and happiness score, Georgia ranked 14th, 10th, and 20th, respectively. These elements indicate that renters prefer Georgia because it offers a variety of job prospects and a pleasant living environment, making it the best state to buy rental property. In Kentucky, less than 18% of households are housing cost-burdened (12th-best) and there is less than one foreclosed home for every 10,000 houses (sixth-best).

It ranks fifth-highest for its monthly rental income ($1,368), ninth for the lowest vacancy rates, and eighth for the highest percentage of renters (36.7%). These factors make it a top contender for the best states to own rental property and second on our list. Investing in real estate requires you to buy homes in areas that increase equity, have a positive cash flow, and are profitable in the long run.