5 Best States To Consider Buying Property in 2025, According to Real Estate Experts
Although housing prices continue to rise across the US, that doesn’t mean it’s impossible to still find good deals.
For one, you might consider the type of home.
See: 7 Types of Homes Expected To Soar in Value by the End of 2025
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“New homes or new construction in most cases will not be discounted. Second home and vacation markets are good places to inquire right now, because as homeowners are impacted by inflation and recession, they start to unload assets at discounts that are not necessary for them day to day,” said Ralph DiBugnara, president at Home Qualified.
Location makes a tremendous difference, too.
Real estate markets vary among different regions, and some states, even with prices going up, could continue to pose attractive buying opportunities in 2025. Some of the top states to consider, according to real estate experts, are the following:
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1. Tennessee
Tennessee has shown strong growth in recent years, and many real estate experts expect the state will continue to be a good place to buy real estate in 2025, especially with the lack of individual income tax helping to support a growing population.
“Not having to pay a state income tax can increase your purchasing power significantly. To see this in action, look at the states like Florida, Texas, Tennessee and others that have seen mass inbound migration over the last few years. These are the places people want to live, so these are also the places that have the greatest opportunity for appreciation of your home value,” said Lori Greymont, creator and host of the real estate TV show, Funding Faceoff.
Within Tennessee, there are several markets that could be appealing.
“The Volunteer State has seen an influx of people from all over the country. Nashville has become an ‘It’ city, but there is also strong growth in Chattanooga, Knoxville and Cookeville,” said Joe Hafner, broker and owner at Hafner Real Estate, based in Middle Tennessee.
“There are still relatively inexpensive homes and land available between Nashville and Cookeville and between Nashville and Chattanooga that I believe offer great opportunity for value appreciation over the next few years. But you can find opportunity almost anywhere in the state,” he added.
2. North Carolina
While North Carolina does have a state income tax, it’s lower than many other states, and property taxes are also relatively low.
“Low-tax states, such as North Carolina, have become hotbeds for buyers,” said DiBugnara.
It’s not just taxes driving buying decisions.
North Carolina is one of the states that Frank Rohde, CEO at Ownify, is bullish on due to its “above average job creation and migration,” he said. Plus, places like North Carolina are not disproportionately exposed to hurricanes and other extreme weather compared to some other states like Florida and Texas, while still being priced reasonably.
“All of those factors combine for a stronger housing market forecast than the national average or some of the other markets in the Southeast, which are more exposed to global warming and the resulting increases in insurance costs,” he said.
3. Florida
Although not everyone agrees that Florida is a good place to buy, considering factors like climate-related risks, it still has a lot of factors going for it, including no state individual income tax. Meanwhile, even with the risk of extreme weather like hurricanes, the state has been attracting residents who want warmer weather.
“Many people from northern East Coast states want to relocate to states with better climates. Cities like Jacksonville, Orlandom and Tampa are all growing at rapid rates,” said David H. Michan, realtor, investor and manager at Terra Equity Management.
“There are also a lot of real estate developers building houses offering incentives on mortgages in order to move product. One can buy a house at rates between 5-6% subsidized by the developer,” he added.
4. Arizona
Another warm-weather state that could be a good place to buy is Arizona, according to Michan.
“Arizona, especially in the Phoenix metro area, is growing and many companies offer well-paying jobs. In Phoenix, the cost of living is less than, say, San Diego or Los Angeles, and equivalent jobs actually pay more. The reason being is that there is more of a supply of jobs than there are potential employees so companies are willing to pay more,” he said.
“This is good for real estate because demand for housing is high, pushing purchase and rental prices up. The cost of a rental will increase first, and eventually the cost of purchasing a property will also rise,” predicted Michan.
Plus, even with Arizona having a state income tax, it’s only a flat rate of 2.5%, and other costs can be relatively affordable.
“Property taxes are relatively low and the cost of insurance has not skyrocketed” like it has in many other states, he added.
5. Idaho
Lastly, Idaho might not get as much attention, but it could “become more prominent in the next few years,” suggested Hafner.
“The state’s low population density and amazing outdoor recreation scene is attracting people from all over the country. The capital of Boise offers the kind of hip and trendy downtown Millennials love, and they’ve been relocating there in droves over the past few years,” he said. “It’s not crazy to say Boise might be on its way to becoming the next Austin — especially in light of the issues currently happening in the real Austin’s real estate market,” he added. “Based on what’s been happening there the past few years, buying and holding Idaho real estate looks like a smart move,” said Hafner.
This article originally appeared on GOBankingRates.com: 5 Best States To Consider Buying Property in 2025, According to Real Estate Experts