The Best State To Buy a House: Settle Without Settling

Choosing your next home is no easy feat. It isn’t only about local events and the best restaurants — you need to know that it’s a great place to settle down, focus on your next chapter, and rest assured that you can afford it all. From property taxes and career opportunities to schools and safety, certain states are definitely more desirable than others when it comes to finding a home. That’s why it’s important to narrow down the best state to buy a house before you decide to make the big move. And that’s exactly what we’re here to help you do.

Key Metrics for Evaluating the Best State To Buy a House

To evaluate the best state for buying a house, you need to look beyond the listing price and consider long-term viability, economic indicators, and quality of life factors.

Affordability & Listing Alignment

Instead of just going off the listing prices, you should look into that area’s average salary vs. the cost of living. If home prices in a state are growing much faster than the area’s salaries, this creates a misalignment and a potential problem later down the line.  

Job & Economic Growth

Did you know North Carolina was named the 2025 State of the Year for Economic Development? States like North Carolina are experiencing significant economic growth, with booming sectors including technology and healthcare. These sectors — along with the educational powerhouse known as Research Triangle Park — attract an influx of high-income workers who can manage housing and mortgage rate spikes.

Tax Policies

Taxes are typically bundled into a buyer’s monthly mortgage payment. If you’re living in a state with high inflation, you might notice that your monthly payment is unexpectedly growing even if the mortgage rate is fixed.

You may find yourself drawn to a specific state like New Hampshire because there is no state income tax, only to realize the high property taxes (some of the highest in the country) can catch you off guard .

Quality of Life

One of the most important factors to consider when looking for the best state to buy a home is whether or not you fit in with the local way of life. If you have a family, consider the local education systems and crime rates. Outdoor access and entertainment options are also important considerations before buying a house.

Top 5 States for Buying a Home

Considering those key metrics, does moving to a state based solely on its low housing prices still sound ideal? We’ve compiled a list of the top five states that balance it all while offering the best long-term value.

Ranking as one of the top states to buy a house, Ohio blends city living and opportunity across Columbus, Cleveland, and Cincinnati.

1. Ohio

• Average home price: $237,200
• Cost of living: 82.7 — 17.3 percent lower than the national average
• Effective property tax rate: 1.22%
• Best for: Families, young professionals, affordable cost of living, tech jobs, manufacturing jobs, outdoor recreation, entertainment, sports

Making the decision to buy a home in Ohio offers the perfect combination of affordability (it’s in the running for cheapest state to buy a house), along with a booming technology industry. The state’s urban lifestyle is reflected in each of the three major metropolitan cities: Columbus, Cleveland, and Cincinnati.

Ohio’s tech sector is expected to grow significantly, and it's often referred to as the "Silicon Heartland." The state's tech economy is heavily influenced by investments in data centers, advanced defense technology, and semiconductor manufacturing. Massive facilities for industry leaders such as Google and Amazon Web Services also have a home base in the state.

In Columbus, the tech hub of Wells Fargo is attracting hundreds of workers, and it's also home to some of the state's most prominent biotech companies.

Ohio has made significant strides toward lowering the state income tax, with a current flat rate of 2.75 percent. While the state has long had high property taxes, the legislature recently approved historic relief.

Lifestyle Draws of Living in Ohio:

• Outdoor recreation: Spots like the islands of Lake Erie and the Hocking Hills are popular for activities like hiking and fishing.
• Amusement parks: People from all over the world travel to the state for some thrill-seeking adventures, home to major parks such as Cedar Point and Kings Island.
• Sports culture: Ohio has a passionate fan base for professional and collegiate sports, including the Browns and Bengals NFL teams and the Ohio State Buckeyes.

2. North Carolina

• Average home price: $331,400
• Cost of living: 91 — 9 percent lower than the national average
• Effective property tax rate: 0.73%
• Best for: Families, young professionals, retirees, affordable cost of living, healthcare jobs, tech jobs, outdoor recreation, entertainment, sports

The housing market in North Carolina has cooled in recent years, with prices down about 0.7 percent compared to last year. Mortgage rates are expected to stabilize, somewhere around 6–6.5 percent.

The financial appeal of the state is also reflected in the income tax rate drop, which has gone down to 3.99 percent and is expected to decrease even more. The mild weather, relaxed atmosphere, top-notch local schools, and strong economy make the state a fantastic place to call home.

North Carolina’s economy is expected to remain steady, with an estimated employment growth of 1.6 percent in 2026. Also known as the "Research Triangle,” the Raleigh-Durham area is home to major investments, such as Genentech’s facility in Holly Springs. Apple’s new campus is also a major draw for technology professionals.

Charlotte, on the other hand, is a major financial epicenter, and developers are working towards affordable multifamily homes for new residents moving to the city.

Lifestyle Draws of Living in North Carolina:

• Diverse outdoor activities: The state’s mild weather allows year-round recreation, from hiking the Blue Ridge Mountains to enjoying the Outer Banks’ water.
• Brewery and arts culture: Cities like Asheville are known for their top-notch craft breweries and art festivals.
• Friendly community atmospheres: Major cities like Charlotte and Raleigh might look a little different from other communities across the state, but overall, North Carolina is known for its strong sense of Southern hospitality and welcoming neighbors.

Minnesota offers abundant water-based recreation, from the breathtaking Minnehaha Falls to Lake Superior’s scenic shores.

3. Minnesota

• Average home price: $341,300
• Cost of living: 97.2 — 2.8 percent lower than the U.S. average
• Effective property tax rate: 1.02%
• Best for: Families, young professionals, retirees, young adult homeownership, Fortune 500 job opportunities, healthcare jobs, lake recreation, winter activities, arts and culture

While Minnesota may not offer as favorable a climate as North Carolina, it remains a top contender for the best state to buy a house due to its high average salaries and below-average home values. According to a recent WalletHub report, Minnesota was ranked the fifth-best state to live in the U.S., and fifth for education and health.

The rates for young adult homeowners in Minnesota are among the highest in the nation, with the homeownership rate for people under 35 nearly 51 percent. The state also has a huge homeownership rate of 71 percent.

Property taxes in Minnesota may not be as low as those in other affordable states, but residents have protections. If your property taxes increase by more than 12 percent in a single year, you are eligible to receive up to $1,000 back.

Because of the high concentrations of Fortune 500 companies in Minneapolis and St. Paul, like Target and 3M, the state provides a massive employment base. The Mayo Clinic in Rochester is also driving population growth. The city has a projected population increase of 15,000 people over the next decade.

Lifestyle Draws of Living in Minnesota:

• Water-based recreation: Also known as the “Land of 10,000 Lakes,” Minnesota has a strong lake-life culture, such as along the northern shore of Lake Superior.
• Winter celebrations: Minnesota celebrates winter with plenty of winter sports and the iconic Great Northern Festival.
• Vibrant arts and culture scene: Minnesota has one of the best arts and culture scenes in the entire country, with world-class institutions such as the Guthrie Theater.

4. Tennessee

• Average home price: $327,700
• Cost of living: 89.9 — 10 percent lower than the U.S. average
• Effective property tax rate: 0.45%
• Best for: Families, young professionals, retirees, minimal tax burdens, healthcare jobs, automotive manufacturing jobs, tech jobs, outdoor recreation, music, culture, world-class dining

If one of your top priorities as a home buyer is tax efficiency, then you should definitely keep Tennessee in mind. Tennessee boasts a low property tax rate and is also one of the few states without a state income tax. Tennessee is also considered one of the best states to buy land and build a house, due to its low average cost per acre.

Tennessee has a diverse economy, making it easier for people of all backgrounds to find employment. Nashville is home to one of the most prominent healthcare hubs in the world, with companies such as HCA Healthcare. Middle Tennessee is known for its automotive manufacturing hubs, while Knoxville is attracting a surge of technology professionals due to its proximity to Oak Ridge National Laboratory.

Lifestyle Draws of Living in Tennessee:

• Abundant outdoor adventures: Tennessee offers a relatively mild climate year-round, with pleasant winters that residents enjoy. The Great Smoky Mountains National Park is one of the most frequently visited national parks in the country.
• Music and culture: Aside from the “Music City” atmosphere in Nashville, the state boasts a strong arts culture in Chattanooga and Memphis.
• World-class dining scene: Tennessee's culinary identity is renowned for its blend of Southern tradition and sophisticated innovations.

Indiana is home to a rich racing tradition celebrated by iconic events like the Indianapolis 500.
(Source: Indianapolis Motor Speedway Museum via Facebook)

5. Indiana

• Average home price: $249,700
• Cost of living: 83.7 — 16.3 percent lower than the U.S. average
• Effective property tax rate: 0.74%
• Best for: Families, young professionals, retirees, minimal tax burdens, job growth, students, sports fans, entertainment, family-friendly amenities

Indiana often flies under the radar when people are searching for the best state to buy a house, yet it consistently ranks among the most affordable states in the U.S., with low home prices and property tax rates. Approximately 40 percent of home listings in the state are affordable to households earning at least $75,000 annually, nearly double the national rate of 21 percent.

Logistics is one of the most prominent industry sectors in the state, which is home to the FedEx Express World Hub. The LEAP Lebanon Innovation District is projected to employ over 50,000 employees in industries such as life sciences, microelectronics, and EV innovation. Purdue University in West Lafayette is also ranked among the most innovative universities in the nation and offers employment opportunities and strong educational programs for students.

Lifestyle Draws of Living in Indiana:

• Deep-rooted sports culture: Basketball is a core part of Indiana’s identity, and major collegiate programs at schools like Purdue University and Indiana University draw in a large fanbase.
• Racing tradition: The Indianapolis 500 is one of the biggest sporting events in the world, drawing hundreds of thousands of fans each spring.
• Family-friendly attractions: Residents living in Indiana have access to the nation’s best family attractions, such as the Children’s Museum of Indianapolis.

Best States to Buy a House — FAQs

Q: Which state is the best to buy a house in?
A: Tennessee is often considered the best state to buy a house because of its low property tax rates and no state income tax.

Q: What state is most affordable to buy a house?
A: Ohio has some of the most affordable home prices in the U.S.

Q: What salary do you need for a $400,000 house?
A: You should earn a minimum annual salary of at least $105,900 for a $400,000 house.

Q: What’s the best state to live in financially?
A: Tennessee is one of the best states to live in financially because of its low cost of living and no state income tax.

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Editor’s note: Average home values were obtained from Zillow. Effective property tax rates were sourced from SmartAsset. For ease of reading, monthly rental prices were rounded to the nearest $25 and home values were rounded to the nearest $100.

_{*This article was written on behalf of PODS Enterprises, LLC (“PODS”). PODS does not warrant the completeness or accuracy of any information contained in this article and disclaims any liability for reliance upon the content herein}