The housing market is starting to cool in some places as mortgage rates rise. But there are still states where prices are sky high.
Nationwide, home prices were 5.5% higher in February compared to the same period last year, according to property data company CoreLogic. Prices remain high in many markets.
The following is a list of the top 10 states with the highest percentage gain in the cost of a home in the past year. If you plan to buy a home in one of these states, it might be wise to find a way to make extra money before you begin shopping.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.
10. Michigan
Year-over-year increase in home prices: 7.8%
Despite its top-10 increase in home prices, Michigan's overall cost of living is about 10% less than the national average.
9. Ohio
Year-over-year increase in home prices: 7.8%
Ohio tied with Michigan in terms of housing price increase at just 7.8% year over year. The state's cost of living isn't quite as healthy, however, coming in at just over 5% under the national average.
8. Illinois
Year-over-year increase in home prices: 8.4%
Illinois has seen an increase in home prices, primarily in its most prominent city of Chicago, which has matched its year-over-year price change of 8.4%.
The state as a whole has a cost of living just 8% lower than the national average.
Resolve $10,000 or more of your debt
Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1
How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.
7. Wisconsin
Year-over-year increase in home prices: 8.7%
Though Wisconsin had the nation's seventh-largest increase in home prices, the state still boasts a cost of living 5% lower than the national average.
Groceries, housing, utilities, and transportation are all relatively affordable. Importantly, however, the state's health care is the fifth-priciest in the nation.
6. New Hampshire
Year-over-year increase in home prices: 9.2%
New Hampshire had the sixth-highest increase of any state. Utilities are especially expensive in New Hampshire. You'll only pay more in two states and one territory: Alaska, Hawaii, and Puerto Rico.
Trending Stories
5. Connecticut
Year-over-year increase in home prices: 10.0%
This one stings, as living in Connecticut is already 12.8% more expensive than the average state. It's now also the state with the fifth-highest growth in home prices.
4. Maine
Year-over-year increase in home prices: 11.4%
Maine, a dream state for many, couples its rising home costs with a cost of living nearly 10% higher than the national average.
3. Rhode Island
Year-over-year increase in home prices: 11.6%
If they can get past the increase in home prices, many will find Rhode Island somewhat affordable, and its cost of living is 10.7% higher than average.
2. New Jersey
Year-over-year increase in home prices: 12.5%
New Jersey had the second-highest growth in home prices in the latest report.
The Garden State fits the Northeastern profile — that is, it has a higher cost of living (+13.9%) than average — but its healthcare costs are .7% below average
Earn cash back on everyday purchases with this rare account
Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2
With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!
This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.
Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.
1. South Dakota
Year-over-year increase in home prices: 13.8%
Though it saw the highest increase in home prices, South Dakota is 7.6% less expensive to live in than the average state across the country.
Bottom line
If you’re looking for a new home, think carefully about where you buy. You want to avoid making foolish money mistakes, especially with such a big purchase.
So, if you're flexible, consider settling down in states where home prices haven’t shot to the moon.
There are also other ways to save money, such as reducing the price point of the home you’re looking for. You might also want to wait if you think prices in your area will come down as mortgage rates go up.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.74%, 24.74%, or 29.74% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Subscribe Today
Want extra-cash moves to come right to you?
Stop browsing endlessly. Get proven ways to earn pocket money, help cover rent, and crush your debt — sent to your inbox daily.