The past few years have been rough for home buyers. Interest rates shot up after the pandemic, while housing inventory shrank dramatically. Supply chain issues also raised the price of building materials, slowing construction of new homes. This gave sellers a significant advantage, allowing them to negotiate prices on their terms. Now the market is shifting back and creating opportunities for buyers. Rates and prices are expected to drop this year. While every state will likely see some benefit, it’s unlikely they’ll benefit equally. Because costs are often a critical factor in the decision to relocate, we’ve compiled a short list of the best states to buy a home in 2026 ‒ places where you can expect to find low prices and strong communities that fit your career and budget.
Factors That Drive America’s Top Housing Markets
Most realtors believe interest rates will fall this year, leading to increased home sales across the country. Buyers searching for the best deals will typically find them in areas where housing is both affordable and attainable for the majority of residents. Lower rates improve affordability but houses only become attainable when listings align with local incomes. This is usually correlated with:
- Job Growth. Strong labor markets lead to higher wages and stable earnings, enabling more residents to qualify for a mortgage. It also encourages price stability and appreciation, making it more likely you’ll see a good return if you decide to sell later.
- Positive Domestic Migration. A steady inflow of new residents helps drive construction at a sustainable rate, ensuring a healthy mix of properties and price points for buyers to choose from.
- Price Cuts. As housing inventory expands, sellers are forced to lower their asking price in response to market pressure, an indication that buyers have more negotiating power and are likely to secure favorable terms during closing.
After studying market trends, realtors have identified several states, primarily in the South and Midwest, where rising income, increased supply, and lower rates are projected to create favorable conditions for buyers. According to their data, the best states to buy a home in 2026 will likely be:
South Carolina
South Carolina has been one of America’s most popular moving destinations for nearly a decade, with an inbound rate of nearly 60 percent last year. While buyers won’t have any trouble finding quality homes in Columbia, the state’s second-largest city, the housing market in Charleston is even more attractive. Its household income rose six percent from 2023-2024, while jobs increased 3.2 percent from 2024-2025.
Based on recent estimates, new arrivals make up around 1.3 percent of the population, one of the reasons why the number of residential housing permits issued by Charleston has increased by around 3.5 percent year over year since 2014. What’s more, sellers lowered prices on 50 percent of homes sold in the first three quarters of 2025 ‒ a clear sign buyers enjoy a huge advantage in South Carolina.
North Carolina
Another popular moving destination, North Carolina received nearly as many new residents as South Carolina last year. The state’s two biggest housing markets, Raleigh and Charlotte, have enjoyed significant income and job growth since 2023. Wages grew by 6.3 percent in Raleigh and 5.8 percent in Charlotte, while jobs in each city increased by 1.3 and 2.5 percent, respectively.
Both cities have expanded their housing inventory to accommodate the large number of new residents. (In Raleigh, they make up 1.3 percent of the population; in Charlotte, 0.8). North Carolina added nearly 100,000 new homes in 2025 and 2024, making it one of the nation’s leaders in housing and development. Sellers responded by lowering prices. Over two-thirds of units sold in Raleigh and Charlotte saw a price reduction in 2025, one of the reasons why the state is so popular with buyers.
Ohio
Even though home construction has been sluggish in Ohio, it remains a promising market for buyers. In Columbus, the state’s largest city, household income rose by an astonishing 7.2 percent from 2023-2024, while the number of jobs rose 1.5 percent last year. While the city’s housing stock didn’t increase significantly, Columbus added 6,000 new apartments in 2025, more than practically every other city in the Midwest, which helped relieve pressure on buyers. Prices were cut in over 60 percent of the city’s home sales ‒ reflecting a broader trend across the state. Other cities such as Dayton, Cincinnati, Akron, Toledo, and Cleveland also saw a significant percentage of listings with at least one price reduction last year.
Indiana
Thanks to its strong economy, Indiana has seen a major influx of new arrivals in recent years. Household income in Indianapolis, its largest city, rose 2.9 percent from 2023-2024, while job growth reached 1.1 percent during the twelve months from August 2024 - August 2025.
These factors have incentivized builders. Indianapolis and its surrounding communities issued more than 10,000 construction permits in 2024 (up 26 percent from 2023) and more than nine thousand filed in 2025. The robust housing market has created favorable conditions for buyers, as the percentage of home sales with price cuts hit 63 percent last year.
Utah
Salt Lake City and its surrounding communities have seen a remarkable surge of people, primarily from Nevada, Washington, Idaho, Arizona, and California. While some are attracted to its scenic beauty and quality of life, most new arrivals are drawn by the area’s robust economy. Between 2023-2024, household income rose 6.5 percent while jobs increased 1.8 percent.
This economic momentum has been building for years and was the driving force behind a long wave of new construction that started over a decade ago. The city’s housing stock grew 14 percent between 2010 and 2020, part of a construction surge along the Wasatch Front (Utah’s major housing corridor) that peaked in 2021, when the state added nearly 40,000 housing units.
While the pace of construction has slowed, Utah remains one of the leaders in home development. Buyers not only have a wide range of housing options, they also have a great deal of negotiating power. Almost 64 percent of homes sold after a price cut last year, indicating just how much the increased supply has benefited consumers.
Finding the Right Home
Since the 2020 pandemic, limited housing stock and high interest rates have kept homes unaffordable and unattainable for most Americans. However, realtors expect things to improve in 2026. Falling interest rates are putting homeownership within the reach of more people, while a surge of new construction is rebalancing the market ‒ moving power from sellers to buyers. Still, not every market is set to respond the same way. While some are full of opportunities, others present few openings for buyers.
But before making your final decision, it’s worth noting that costs aren’t the only factor to consider. The right home not only fits your budget, but your lifestyle and expectations. Schools, weather, taxes, shopping, and entertainment have a big impact on future happiness. Price is important, but the best homes should match your future goals and way of life, as well as your financial needs.
North American Moving Services
North American has been one of the top-rated moving companies in the United States and Canada for over 90 years. Whether you’re heading over the mountains or across the prairie, our teams have the skills, resources, and experience to get you there safely. From planning to packing to shipping storage, and final delivery, there is no challenge we can’t handle. Contact us today for a free quote!