Best States for Homeowners – 2021 Edition

Homeownership is often viewed as a fundamental pillar of investing and building wealth. While real estate markets vary from city to city, home values have historically risen over the decades. In fact, home values across the U.S. have increased by nearly 17% over the last year, rising to $298,933 by the end of July 2021, according to Zillow. But appreciation is just one financial component of homeownership. Closing costs, property taxes and insurance also factor into whether homeownership is a good investment for a prospective buyer.

As real estate markets remain red hot, SmartAsset set out to determine which states are best for homeowners. We compared all 50 states across 10 metrics: median home value, home value appreciation, home value to household income ratio, foreclosures per 10,000 homes, average annual homeowners insurance, burglary rate, median annual property taxes, effective property tax rate, average closing costs and average closing costs as a percentage of median home value. For a breakdown of our data sources and how we put all the information together to create our final rankings, read the Data and Methodology section below.

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