By Scott Cohn for CNBC

• • High interest rates and tight housing supply are hurting both homebuyers and sellers.
• • The extent of the residential real estate crisis varies widely from state to state, and in some top states, climate risks are also rising.
• • Because companies consider the residential real estate market when deciding where to locate, CNBC factors it into the annual America’s Top States for Business study.

America is embroiled in a housing crisis. The supply of homes is tight. The supply of affordable homes is even tighter, and persistently high mortgage rates make things even worse. But the extent of the problem varies from state to state.

That is why companies take the local residential real estate market into account when deciding where to locate. They want their prospective employees to be able to find an affordable place to live that is also a good investment. That makes the housing market an important element of state business competitiveness.

CNBC considers the housing market as part of the Economy category in America’s Top States for Business, the annual rankings of all 50 states. Under this year’s methodology, states are graded based on that balance of affordability and value. We consider price appreciation and seller gains, as well as affordability, inventory, and housing starts. We also look for signs of stress, like foreclosure activity and underwater mortgages.

While every buyer and seller has different priorities, the housing markets in these ten states could give you the best bang for your buck.

10. Delaware

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.

2024 Economy Rank: No. 10 (Top States Grade: B-)

Appreciation: 4.73%

Inventory (July): 2 months

Affordability score (0 to 2, with 2 being most affordable): 0.56

Effective property tax rate: 0.43%

Median sales price: $360,700

9. Indiana

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.

2024 Economy Rank: No. 19 (Top States Grade: C)

Appreciation: 8.02%

Inventory (July): 2 months

Affordability score: 0.81

Effective property tax rate: 0.86%

Median sales price: $265,300

8. 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.

2024 Economy Rank: No. 7 (Top States Grade: B)

Appreciation: 7.16%

Inventory (July): 3 months

Affordability score: 0.59

Effective property tax rate: 0.82%

Median sales price: $385,600

7. 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. In the single family market, inventory has started to build, which has moderated price gains and could bring more buyers into the market.

2024 Economy Rank: No. 3 (Top States Grade: B+)

Appreciation: 6.24%

Inventory (July): 3 months

Affordability score: 0.49

Effective property tax rate: 0.44%

Median sales price: $393,000

6. 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. Property taxes are low. Home equity is healthy despite an uptick in foreclosure activity.

2024 Economy Rank: No. 8 (Top States Grade: B)

Appreciation: 3.39%

Inventory (July): 2 months

Affordability score: 0.43%

Effective property tax rate: 0.48%

Median sales price: $458,300

5. 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.

2024 Economy Rank: No. 17 (Top States Grade: C+)

Appreciation: 11.38%

Inventory (July): 2 months

Affordability score: 0.56

Effective property tax rate: 1.64%

Median sales price: $532,400

4. North Carolina

Homebuilders 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. Property taxes are reasonable, especially considering the state’s rapid growth.

2024 Economy Rank: No. 4 (Top States Grade: B+)

Appreciation: 6.98%

Inventory (July): 2 months

Affordability score: 0.52

Effective property tax rate: 0.6%

Median sales price: $383,700

3. 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. Property taxes are low, but so is housing affordability.

2024 Economy Rank: No. 5 (Top States Grade: B+)

Appreciation: 6.63%

Inventory (July): 3 months

Affordability score: 0.44

Effective property tax rate: 0.41%

Median sales price: $450,800

2. 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. Property taxes are low. However, home equity could be better, and foreclosures are on the high side.

2024 Economy Rank: No. 12 (Top States Grade: B-)

Appreciation: 9.42%

Inventory (July): 3 months

Affordability score: 0.61

Effective property tax rate: 0.5%

Median sales price: $387,700

1. Florida

The Sunshine State‘s housing market is notoriously tricky to gauge, but this much we know: 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.

The state is also trying to work its way out of a serious insurance crisis that has major implications for home values and affordability. Climate risk in Florida — including risk to the housing stock — is real. But for now, the Florida real estate market is striking a decent balance, albeit a tenuous one, and that is helping to power the nation’s strongest overall economy.

2024 Economy Rank: No. 1 (Top States Grade: A+)

Appreciation: 6.85%

Inventory (July): 4 months

Affordability score: 0.44

Effective property tax rate: 0.76%

Median sales price: $420,100

The preceding article was written by Scott Cohn and originally appeared on July 17, 2024 on CNBC’s website and is made available here for educational purposes only. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 106A-117 of the U.S. Copyright Law.