Housing News

The 10 Best States to Live in 2026: What Homebuyers Should Know

The best state in America is holding onto its crown.

Utah ranked No. 1 in U.S. News & World Report’s 2026 Best States rankings for the fourth consecutive year.

“Being named the No. 1 state is an honor, but what matters most is what that ranking represents: hardworking people, strong families, and neighbors who look out for one another,” said Utah Gov. Spencer Cox in a statement.

U.S. News evaluated all 50 states using 71 metrics across eight categories: health care, education, economy, infrastructure, opportunity, fiscal stability, crime and corrections, and natural environment. The categories are weighted based in part on surveys of what residents say matters most to them.

“The top-ranking states cluster in the Mountain West and Upper Midwest, distinguished by high-quality infrastructure, robust economies, and access to strong education,” said Realtor.com senior economist Hannah Jones. “This desirability extends to housing markets, where relative affordability, economic stability, and climate resilience continue to attract strong buyer demand.”

For homebuyers considering a move, another number matters: what it costs to buy a home there.

Housing costs vary dramatically across the states that made this year’s list, with typical home values ranging from less than $300,000 in some of the top-ranked states to more than $600,000 in others.

(Home values and housing market data are from Zillow’s latest available June 2026 data unless otherwise noted.)

Here’s what homebuyers should know about the 10 states that came out on top.

1. Utah

Median home price: $541,700

Four years at the top speaks to Utah’s broad appeal.

Utah placed in the top 10 in five of the eight categories measured, including No. 2 for economy and fiscal stability and No. 4 for infrastructure.

“As a resident since 1993, I think the overall quality of life keeps us ranked in the top states,” said Mike Mazzone, a Park City, Utah-based real estate broker. “Recreation, natural beauty, open space and work opportunities is what kept me here so long.”

Homebuyers will pay more for that combination than in many of the states further down the list.

2. South Dakota

Median home price: $325,600

South Dakota made one of the biggest leaps of any state this year, rising six places from its 2025 position.

Improvements in health care, the economy, and opportunity helped propel the state upward, according to U.S. News. Its natural environment also earned it the No. 2 spot nationally.

Nearly two-thirds of homes sold below their asking price in May, according to Zillow data.

3. Minnesota

Median home price: $356,900

Minnesota combines a high quality-of-life showing with home prices well below those in several other states in the top 10.

Homebuyers may need to move relatively quickly once they find a home they like. Homes went under contract in a median of about 18 days.

4. North Dakota

Median home price: $290,600

North Dakota also surged up the list this year, rising eight places from its 2025 position.

Gains in fiscal stability, the economy, and education helped drive the improvement, with North Dakota taking the No. 3 spot nationally for fiscal stability.

Homebuyers will find some of the lowest prices in the top 10 in the state.

5. Nebraska

Median home price: $284,500

Infrastructure is one of Nebraska’s standout strengths, earning the state the No. 3 position nationally in that category.

Its housing market gives homebuyers another reason to pay attention, Nebraska had the lowest typical home value among the top 10 states.

6. New Hampshire

Median home price: $522,900

Public safety helps distinguish New Hampshire, which earned the nation’s top ranking for crime and corrections. Its natural environment came in at No. 3.

Homeownership here comes at a considerably higher price than in the Plains states on the list.

7. Idaho

Median home price: $482,200

A strong economy helped Idaho stand out, earning it the No. 3 spot nationally in that category.

Home price growth, meanwhile, has been relatively modest. The typical Idaho home was up 1.2% from the previous year.

8. Florida

Median home price: $378,100

Education is a particular bright spot for Florida, which placed No. 3 nationally in the category.

The housing market may also look more approachable to homebuyers than it did during the pandemic-era boom. Nearly three-quarters of homes sold below their asking price in May.

9. Washington

Median home price: $603,300

Washington presents the biggest housing-budget test among the states that made the top 10 list as the most expensive housing market.

10. Vermont

Median home price: $402,000

Opportunity is Vermont’s calling card in the U.S. News rankings. It took the No. 1 spot nationally in that category and placed third for crime and corrections.

Homebuyers may have some negotiating room: Nearly 59% of homes sold for less than their asking price in May.

The best state may depend on your homebuying budget

The U.S. News rankings show how many factors can shape where people choose to live. For homebuyers, those differences can translate into very different monthly mortgage payments.

A lower home price may allow a homebuyer to purchase more space or put down a larger percentage of the purchase price. Local property taxes, homeowners insurance, salaries, and other expenses can also change the affordability equation considerably.

Finding the best state to buy a home comes down to where the lifestyle you want and the monthly payment you can comfortably afford.