A new study has revealed where Americans are most likely to buy a home heading into the end of 2024. Highland Cabinetry conducted a comprehensive analysis of all 50 U.S. states to determine where homebuying is most preferred.
The study utilized search data from Google’s Keyword Explorer Tool to gauge interest and incorporated additional factors such as home sale prices, mortgage rates, average rent, and home value changes over the past year. Data was sourced from the U.S. Census Bureau, Business Insider, Zillow, and others.
A preference score was then assigned to each state, combining these metrics to create a comparative ranking.
California emerges as the most sought-after state for homebuyers, boasting a preference score of 75.8. Despite its high average home sale price of $782,695, the Golden State saw the largest home value decrease at 2.8% over the past year. Coupled with over 5.6 million searches for terms like “buy a house,” this drop signals growing interest in the state as a potential investment opportunity. However, California remains the priciest state to rent, with average monthly rent at $1,870, presenting challenges for renters but opportunities for landlords.
Texas and Ohio stand out for their affordability. Texas, with a preference score of 55.8, recorded nearly 4.8 million home-buying searches and offers one of the lowest average home sale prices at $303,352. Monthly rent in Texas is relatively low at $1,290, making it an attractive choice for both buyers and renters.
Ohio, ranked eighth with a score of 51.1, is the cheapest state to rent, with an average monthly rent of $949. It also boasts the lowest home sale price among the top states at $221,816, combined with a 3.5% rise in home values, signaling strong investment potential.
Florida, New York, and New Jersey round out the top states for homebuying interest. Florida’s reasonable home prices, averaging $396,318, and moderate rent costs of $1,525 earned it a score of 62.2, while New York secured second place despite its high mortgage rates and modest home value growth, according to Highland Cabinetry.
New Jersey, with a significant 5.2% increase in home values and one of the lowest mortgage rates at 4.84%, remains a strong competitor, though its average home sale price of $508,430 places it in the mid-range.
While California leads in overall interest, states like Texas and Ohio highlight the appeal of affordability. The findings suggest that prospective buyers balance various factors, including potential long-term value, cost of living, and market trends.
A Highland Cabinetry spokesperson emphasized the importance of looking beyond upfront costs: “If you're considering purchasing a home, look beyond just the price tag. While states with declining home values, like California, may seem attractive, remember to weigh other factors such as mortgage rates, average rent, and potential long-term value growth."
They concluded: "A state with a modest initial investment can become a hidden gem if its home value trends upward, offering a better return in the long run. Diversifying your search can help you spot opportunities that align with your financial goals and lifestyle needs.”