Choosing a State to Live In as a New Home Buyer

Being a new home buyer is an exciting time with a lot of possibilities. And while many people choose to purchase a home in the state they currently live in, the increase in affordable travel and remote work opportunities means you can also cast a wider net when deciding where to settle down. 

If you’re looking to establish roots somewhere and are flexible on location, your first step is going to be choosing which state meets your needs, preferences, and lifestyle. Below, we’re sharing the factors you should consider as you make this decision, including a quick look at the states that are excelling in jobs, home prices, and other key considerations that all home buyers should pay attention to.

Setting the Metrics

Each state in the U.S. is unique, and a state that may be great for one person may not be ideal for another. Your job as a new home buyer is to do the research and figure out (a) what you really need out of the state you reside in and (b) what states check off those boxes. Here are some of the factors to keep top of mind as you go through this process. 

Cost of Living

This is obviously going to be a top consideration for any new home buyer, and includes not just housing costs but costs related to state, income, property and sales taxes, as well as groceries, childcare, and gas. 

Climate

Whether you head north, south, east, west, or straight into middle America largely depends on the type of climate you want to reside in. Average temperatures and annual rainfall or snowfall (or lack thereof) are usually the first things that come to mind but don’t forget to consider things like risks of flooding and other climate disasters, plus how the state scores in terms of mitigation efforts. 

Quality of Job Market

If you’re hoping to get a new job along with your new house, then dig into the data around state job markets. Make sure to narrow down your search by looking specifically at job opportunities in your field or the field you wish to work in, and if possible, test the waters by applying for jobs prior to committing to a move. 

Education

Home buyers with young children need to account for the quality of the education system in the state they’re looking at, in addition to the school system in a particular town and/or county. States invest resources in their school systems in different ways, and you want to know that wherever you move prioritize your child’s education as much as you do. 

What is the Best State to Live In as a New Home Buyer?

Your perfect state is out there – and it might not be where you expect. Try to push aside preconceived notions about certain states or regions, and instead focus your search on the specific qualities you care about most as a new home buyer. To help you do it, we’ve outlined the top states for a variety of home buyer wants, including some that may not be on your radar yet. 

If you want new home buyer incentives: West Virginia, Mississippi, Kentucky, Oklahoma, Kansas

If you want a low cost of living: Arkansas, Mississippi, Alabama, South Dakota, Iowa

If you want a good job economy: Utah, North Dakota, South Dakota, Colorado, Vermont

If you want a family-friendly atmosphere: Massachusetts, North Dakota, Minnesota, Nebraska, New York

If you want to explore nature: California, Utah, New Hampshire, Montana, North Carolina

If you want cheap land: Arizona, New Mexico, Mississippi, Colorado, Arkansas

If you want good weather: California, Hawaii, Florida, Texas, and Arizona

If you want the best retirement opportunities: Delaware, West Virginia, Georgia, South Carolina, Missouri

If you want world-class healthcare: Massachusetts, Hawaii, New Hampshire, Rhode Island, Vermont

If you want a strong education system: Massachusetts, Connecticut, Maryland, New Jersey, Wisconsin

Every state has its pros and cons. And just because a state isn’t in the top five for a certain metric doesn’t mean it should be crossed off your list. As a new home buyer, you want to consider all of the listed factors and the sorts of things that can’t be so easily quantified. When you find the state that aligns with your culture, lifestyle, budget, and goals, you’ll know you can be confident about moving forward with your home purchase. 

Doing Your State Research

The best place to start when researching states as a new home buyer is by pinpointing your exact wants and needs. This will include things that every home buyer needs to consider, such as how much you can spend and how many bedrooms and bathrooms you need. It will also be state-specific, accounting for the various factors mentioned above and others. 

Your first home isn’t necessarily where you’re going to live forever, but you’re likely to spend at least a few years there. So make sure to consider future needs and not just your present preferences. Is the state you’re choosing going to be able to meet those needs? What is your resale potential if you decide to move? 

Finally, engage the help of a local real estate agent in whichever state(s) you’re interested in. They’ll be your best resources when it comes to things like finding a neighborhood, comparing schools, and accurately assessing resale value, and they will be able to show you the full range of available options at your price point. 

You can’t really know a place until you live there. Choosing the best state as a new home buyer then is more about knowing yourself and what you value in a location. Combine that with family and financial considerations and you’ll be well set to select your ideal state.