The best states to buy a house in the next five years

The best states to buy a house in the next five years.

As any home hunter knows, where you buy is as important as what you buy it for. Finding the perfect chemistry for affordable housing in an area with a good job market, great public schools, favorable weather, and a political and social climate that reflects your values can be challenging. This is especially true in our current real estate market, which is characterized not only by rising prices but even by high mortgage rates.

But what about five years down the road? According to a US New and World Report, we're in for a bumpy ride thanks to the aftereffects of the COVID-19 pandemic, climate change, and housing shortages. To aid your search for future housing, we've compiled a shortlist of states where it's time to buy in the next five years.

Idaho

According to Ryan Fitzgerald, realtor and owner of Raleigh Realty, Idaho is one of the fastest growing states thanks to its low cost of living and real estate prices that are known to stick over time. Home values are rising faster in Idaho than in any other state—nearly doubling in the past five years.

Fitzgerald also noted, "Boise, the state capital, is known for its safe neighborhoods and commendable school systems." Add to that a job market projected to grow at 1.5% annually through 2030, and you can understand why this is a great place to look to put down roots.

Utah

Utah is nicknamed the "Silicon Cliffs" thanks to its booming tech industry. But according to Fitzgerald, this is not the only plus that Utah offers. The Beehive State is also characterized by a strong economy, vibrant outdoor life, low unemployment rates, and a thriving real estate market that steadily rises over time.

Colorado

If you're an eco-conscious buyer, I suggested Neha Gharpande of Elite Properties NY, Colorado, thanks to her commitment to sustainability, renewable energy, and green living. She also mentioned that Colorado has seen significant job growth, particularly in technology, aviation, and healthcare. "The nation's strong economy translates into increased demand for housing, as well as potentially higher real estate values," said Garbandi. Like Utah and Idaho, Colorado has stunning landscapes and offers plenty of opportunities for year-round activities that, Garbandi noted, attract tourists and residents, which in turn increases the desirability of the real estate market.

North Carolina

According to Gharpande, North Carolina's affordable housing market makes it an attractive option for first-time homebuyers and those seeking a lower-cost lifestyle. The state offers a lower cost of living than many states in the same region of the country. Depending on your city, the cost of living is anywhere from 4% to 11% lower than the national average.

Fitzgerald put North Carolina on his list thanks to the Research Triangle Park, a magnet for drug and technology companies. "This influx has spurred a healthy job market, and housing remains relatively affordable," he said.

Fitzgerald also believed North Carolina would thrive because it combines city living and the beautiful outdoors. While Gharpande has promoted many cultural and outdoor activities as attractive to families and individuals looking for a "good living experience."

Texas

The Lone Star State has seen a boom in interest since the pandemic, and according to our real estate experts, this has been going strong for a while. "Over recent years, I have noticed a significant influx of technology companies gravitating to this state, as Austin serves as an important technology hub," said Fitzgerald. "This migration has created high-income jobs and high demand for housing. Combined with an affordable cost of living and a vibrant cultural scene, Texas offers an attractive opportunity."

Gharpande had a similar view but added that the low cost of living and the affordable housing market attracted first-time buyers and investors interested in attractive rental markets. She also said, "Texas prides itself on a pro-business climate, favorable tax policies, and fewer regulations." Garbandi added that this environment promotes economic growth, which positively affects real estate values.