The American real estate market has undergone a significant upheaval in the last two years. But certain things never change; among them are the states that continue to top the list of expensive locations to buy a home. The 15 most costly states in 2023 are listed below, per a recent study.
Hawaii is famous for its stunning beaches, pleasant weather, and spectacular landscapes. With a Zillow Home Value Index of $834,582 (up 18% in the last two years), it crowns the most costly state to buy a home, nevertheless. The high housing values on the islands result from the high cost of living and the small amount of available land.
According to the Home Value Index, the silver medal goes to California at $728,133. Some of the most sought-after American cities, including Los Angeles, San Francisco, and San Diego, are found here. Homebuyers are drawn to the state's thriving tech sector, pleasant temperature, and magnificent coastline.
3. District of Columbia
The District of Columbia, usually called Washington D.C., serves as the nation's capital and the center of political activity. It won the bronze medal for the most costly state to buy a home in, with a typical price of $627,158. High house values result from the city's various neighborhoods, historical sites, and strong labor market.
Major tech firms like Amazon and Microsoft and breathtaking natural landscapes may be found in Washington. It is the fourth most costly state to buy a home in, with an Index of $562,936. Homebuyers are attracted by the state's robust job market, high standard of living, and abundance of outdoor recreation possibilities.
Massachusetts is a state that values education, culture, and history. It ranks as the fifth most expensive state to buy a home in, with a Zillow Home Value Index of $558,312. High property values result from the state's excellent quality of life, famous colleges, and robust job market.
The breathtaking Rocky Mountains, the abundance of recreational activities, and the state's thriving technology sector make Colorado well known. It is the sixth most costly state to buy a home in due to the average value of $539,639 – 59% higher than the national average. The state's robust economy, stunning scenery, and high quality of life are three of its main draws for homeowners.
Beautiful national parks, a robust job market, and a developing IT sector may all be found in Utah. It is the seventh most expensive state to buy a home – $506,072. Homebuyers are primarily attracted by the state's natural beauty, quality of life, and options for outdoor leisure.
Oregon is renowned for its breathtaking coastline, abundance of outdoor activities, and high standard of living. With an Index of $485,474, it is the eighth most expensive state to buy a home in. Buyers are attracted to the state's warm neighborhoods, robust economy, and stunning natural surroundings.
9. New Jersey
The proximity of this state to essential cities like New York City and Philadelphia, as well as its robust job market and high standard of living, all help to explain the state's high house values. New Jersey has a vibrant economy, a diversified population, and a long history. It is the ninth most expensive state to buy a home in, costing $451,558.
Idaho has breathtaking natural beauty, possibilities for outdoor activity, and a developing tech sector. It ranks as the tenth most costly state to purchase a home, with a mean value of $435,373. Significant incentives are the state's robust economy, inexpensive cost of living compared to other states on this list, and high standard of living.
11. New Hampshire
The state ranks in this caucus with an average cost of $429,421. The state's robust economy and excellent living level are to blame for its high cost of living. Notably, the state has far higher housing and healthcare costs than other regions of the nation. Too, New Hampshire residents pay some of the country's highest property taxes, contributing to the state's comparatively high tax burden.
The state's robust economy and high cost of living are just two reasons for the high cost of living there. Particularly compared to other states, Vermont has much higher housing and healthcare costs. The state also has a comparatively high tax burden, with some of the highest property taxes in the nation paid by its citizens. Up 5.8% from last year, housing costs an average of $388,580.
Several things contribute to Maine's high cost of living, such as high taxes, energy, and healthcare costs. Further, given Maine's location in the northeastern part of the country, the expense of delivering goods and services to the state may make things more expensive, including homes that now average $385,666.
Because of its proximity to important cities like New York and Boston, which can raise the cost of products and services, the state has an average home value of $379,836. Additionally, Connecticut residents pay some of the nation's highest income and property taxes, contributing to the state's unusually high tax burden. The state's high cost of utilities and housing also adds to the general expense of life.
15. Rhode Island
The high cost of living in Rhode Island can be due to things like high housing ($358 536 on average), energy, and healthcare expenditures. Due to greater demand, Rhode Island's small size and high population density often result in higher prices for goods and services.