The top 10 states for buying and selling a home in 2024, with a significant warning at the top spot.

• High interest rates and tight housing supply are hurting both homebuyers and sellers.
• Some states are experiencing a severe residential real estate crisis, with climate risks also increasing in certain areas.
• CNBC takes into account the residential real estate market when determining the rankings for America's Top States for Business.

The housing crisis in America is caused by a tight supply of homes, particularly affordable ones, and high mortgage rates. However, the severity of the issue varies across different states.

State business competitiveness is influenced by the housing market, as companies consider the local residential real estate market when deciding where to locate, in order to provide their employees with an affordable place to live and a good investment opportunity.

The housing market is included in the Economy category of America's Top States for Business, which ranks all 50 states based on a balance of affordability and value. This year's methodology takes into account factors such as price appreciation and seller gains, as well as affordability, inventory, and housing starts. Additionally, signs of stress, such as foreclosure activity and underwater mortgages, are also considered.

The ten states with the most favorable housing markets may offer the greatest value for both buyers and sellers.

10. Delaware

While housing affordability in Delaware is average, property taxes provide a significant advantage for homeowners. According to real estate data firm ATTOM, Delaware homeowners paid an effective tax rate of less than half a percent, which is the fourth-lowest in the country.

2024 Economy Rank: No. 10 (Top States Grade: B-)

Appreciation: 4.73%

Inventory (July): 2 months

The affordability score is 0.56.

Effective property tax rate: 0.43%

Median sales price: $360,700

9. Indiana

Indiana provides a unique blend of affordability, with low property taxes, and healthy price growth. Despite limited inventory, homebuyers are still able to find what they need at a reasonable price.

2024 Economy Rank: No. 19 (Top States Grade: C)

Appreciation: 8.02%

Inventory (July): 2 months

Affordability score: 0.81

Effective property tax rate: 0.86%

Median sales price: $265,300

8. Georgia

The Peach State is experiencing an increase in home inventories, which is beneficial for affordability. Homebuilders have also been active. Despite this, the price appreciation remains strong.

2024 Economy Rank: No. 7 (Top States Grade: B)

Appreciation: 7.16%

Inventory (July): 3 months

Affordability score: 0.59

Effective property tax rate: 0.82%

Median sales price: $385,600

7. Tennessee

Although Tennessee has some of the lowest property taxes in the country, affordability remains a concern. A new law aims to encourage more affordable housing in multifamily units. Meanwhile, the single family market has seen an increase in inventory, which has slowed down price gains and may attract more buyers.

2024 Economy Rank: No. 3 (Top States Grade: B+)

Appreciation: 6.24%

Inventory (July): 3 months

Affordability score: 0.49

Effective property tax rate: 0.44%

Median sales price: $393,000

6. Nevada

Despite the historically volatile nature of the Silver State's housing market, this year's inventory is manageable, and housing construction is active. Although affordability remains an issue, prices have moderated, benefiting buyers but not sellers. Property taxes are low, and home equity is healthy, despite an increase in foreclosure activity.

2024 Economy Rank: No. 8 (Top States Grade: B)

Appreciation: 3.39%

Inventory (July): 2 months

Affordability score: 0.43%

Effective property tax rate: 0.48%

Median sales price: $458,300

5. New Jersey

Last year, home prices increased in New Jersey due to an active housing market. Although affordability could be improved, it is not significantly higher than the median income. Nevertheless, New Jersey has the second-highest property taxes in the country and a high foreclosure rate.

2024 Economy Rank: No. 17 (Top States Grade: C+)

Appreciation: 11.38%

Inventory (July): 2 months

Affordability score: 0.56

Effective property tax rate: 1.64%

Median sales price: $532,400

4. North Carolina

In North Carolina, homebuilders are experiencing a surge in activity, with the second-highest number of housing starts last year, following fast-growing Alabama. Despite the high demand, inventory remains limited, which continues to drive up property prices. However, property taxes in the state are relatively affordable, given the state's rapid expansion.

2024 Economy Rank: No. 4 (Top States Grade: B+)

Appreciation: 6.98%

Inventory (July): 2 months

Affordability score: 0.52

Effective property tax rate: 0.6%

Median sales price: $383,700

3. Arizona

Despite an increase in home inventory, sellers in Arizona are still experiencing gains. The construction industry is thriving, and home equity remains strong. Although property taxes are low, housing affordability is a concern.

2024 Economy Rank: No. 5 (Top States Grade: B+)

Appreciation: 6.63%

Inventory (July): 3 months

Affordability score: 0.44

Effective property tax rate: 0.41%

Median sales price: $450,800

2. South Carolina

Although home prices are increasing in South Carolina, housing remains relatively affordable. This price appreciation may lead to more construction activity, contributing to rising inventory levels. While property taxes are low, home equity could be improved, and foreclosures are on the rise.

2024 Economy Rank: No. 12 (Top States Grade: B-)

Appreciation: 9.42%

Inventory (July): 3 months

Affordability score: 0.61

Effective property tax rate: 0.5%

Median sales price: $387,700

1. Florida

The housing market in Florida is challenging to predict, but one thing is certain: home values are increasing, and builders are working hard to meet the demand as more people move to the state. Although property taxes are not the lowest, they help mitigate the state's ongoing affordability problems. However, some trends are more troubling, such as an increase in foreclosures and a growing number of underwater mortgages.

Florida's real estate market is experiencing a delicate balance, despite the threat of climate risk to the housing stock. This balance is contributing to the nation's strongest economy overall.

2024 Economy Rank: No. 1 (Top States Grade: A+)

Appreciation: 6.85%

Inventory (July): 4 months

Affordability score: 0.44

Effective property tax rate: 0.76%

Median sales price: $420,100