Owning a home has become a distant dream for most Americans because the lack of affordable housing has turned into a crisis. However, with new units being added to the inventory and interest rates cooling down, the coming year is expected to bring much-needed relief for homebuyers, according to a Forbes report. But before looking for affordable accommodation, it is important to know which states offer the best value for money. That's why this list of the best and worst states to buy a property in the next 5 years curated by experts, will come in handy.
Rising Demand for Ohio
According to real estate platform Redfin, the median price of a house in Ohio as of October 2024 was $260,000. This is about $90,000 less than the national average.
Thomas Brock, a chartered financial analyst, certified public accountant, and expert for Annuity.org, told GoBankingRates that experts have their eye on Ohio. Speaking about Columbus a city in Ohio, Brock said it was one of the best U.S. cities for landlords, as it has been one of the fastest-growing metro areas.
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Escaping Climate Impact in New York
It may be shocking to some to see New York on the list since the median home price in New York in September 2024, was $829,000 as per Realtor.com. However, New York isn't on the list because of affordability.
In his 2021 book, “How to Prepare for Climate Change: A Practical Guide to Surviving the Chaos,” author David Pogue wrote that cities like Buffalo and Syracuse would be the ideal places to live amid climate change. He went on to call them “climate haven” cities for the low risk of wildfires and hurricanes and the steady supply of fresh, clean water.
Perks of Living in Florida
The average home price in Florida was $393,698, as of October 2024, according to Zillow. Like New York, Florida was also on the list for the value it offers and not just affordability. Austin Hair, the managing partner at Leaders Real Estate, told GoBankingRates that Florida has some "intangibles" that make it one of the best places to own a property.
Some of these advantages cited by Hair were the year round warm weather and zero state income tax. This is why, despite skyrocketing prices, record-high interest rates, and vulnerability to extreme weather events, people keep moving to the state. But the influx is also expected to push property prices upward in the coming years.
California Among the Worst
Despite the great landscape, vibrant culture, and good weather, California is becoming less attractive to buyers due to poor affordability and high cost of living.
“The state also struggles with issues like wildfires and droughts, which can make homeownership even more challenging and expensive,” Yawar Charlie, estates director of Aaron Kirman Group at Christie’s International Real Estate and a cast member of CNBC’s “Listing Impossible," told GoBankingRates.
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Illinois Losing its Charm
According to Charlie, the state of Illinois and its city Chicago is facing significant financial woes. The state is also battling high crime rates and the budget deficit has led to cuts in essential services while driving up tax rates. These factors make it all the less attractive to home buyers.
Louisiana Hit by Extreme Weather
Tony Mariotti, founder of RubyHome, told the media outlet that Louisiana is highly vulnerable to climate change, hurricanes, and flooding, which increases the risk of property damage for homeowners.
“The state also struggles with lower job growth and economic diversification, making it less attractive for long-term investments," he added in the report.
