Americans have seen inflation hit many categories of consumer goods, and real estate hasn’t been left out. The pandemic-era housing market priced many would-be homebuyers out of contention, and the problem persists today.
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However, there are some states where rising home prices have definitely outpaced real estate values in others. Here’s a list of five states where you’re likely to pay too much for a home, as detailed by Fox Business (via MSN).
1. Tennessee
Tennessee’s lower cost of living and lack of state income tax have attracted a significant influx of new residents, particularly from more expensive states like California and New York. This increased demand for housing outpaced the supply, driving prices higher.
Main attractions include the state’s diverse economy — which includes healthcare, automotive and tech sectors — and accessibility of desirable metros like Nashville and Chattanooga.
Learn More: 9 Major US Cities Where Buying a Home Is Surprisingly Cheap
2. Arkansas
Another state with very affordable costs of living, Arkansas has experienced a surge in housing prices driven by its natural beauty, growing job market and high quality of life. Though mostly rural, some areas are becoming increasingly more metropolitan, offering more for professionals and young families.
The small-town charm combined with access to modern amenities and a lower-than-average cost of living is a huge draw for migrating residents.
3. South Carolina
South Carolina has become a magnet for new residents due to its abundance of coastal cities, increasing job opportunities and lower cost of living compared to many Northern states. This in-migration of people, particularly retirees and remote workers, has increased the demand for housing, ultimately driving up prices.
4. Montana
This state has been an undervalued gem for a long time. However, like many other low-cost-of-living states, its value became apparent when remote workers figured out they could live wherever they wished.
The state’s beautiful natural landscapes and wide-open spaces have become increasingly attractive to the ultra-wealthy and average Americans alike. However, like other states on the list, these factors have contributed to an increased demand for housing, subsequently driving up real estate prices.
5. Alabama
Alabama has seen a noticeable uptick of new residents in recent years — even before the pandemic. Of course, the main draw is its relatively low cost of living compared to other states. Plus, Alabama offers affordable housing options, reasonable property taxes, and lower overall expenses, making it an attractive destination for both professionals and families seeking to reduce their cost of living.
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This article originally appeared on GOBankingRates.com: If You’re Looking To Buy a Home in These 5 States, You’re Likely Going To Pay Too Much
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