Those thinking of relocating might want to head to Utah.
Utah was named the best state in the nation, according to U.S. News & World Report’s fifth annual state rankings. The Beehive State shot up from its No. 3 position last year thanks to its high scores in health care, its economy, and the state’s fiscal stability. Utah has become a hot spot for startups, tech entrepreneurs, and young people thanks, in part, to its low unemployment rate.
“So many things—a thriving economy, stunning natural beauty, a strong sense of community where people look out for each other, world-class educational opportunities, responsible government, and much more—make Utah a truly special place,” Utah Gov. Spencer Cox said in a statement.
States were evaluated in eight categories: health care, education, economy, infrastructure, opportunity, fiscal stability, crime and corrections, and natural environment. More than 70 metrics and tens of thousands of data points were considered. (Washington, DC, was not included in the analysis.)
More than half of the top 10 states had median home prices above the national median of $424,495.
Homes in Utah certainly aren’t cheap. The median list price was $603,500 in March, about 43% more than the national price tag, according to the most recent Realtor.com® data.
“When the [COVID-19] pandemic hit, it made it so a lot of people could telecommute. So we had a lot of people from the more expensive East and West Coasts come to where it’s just more affordable in a highly desirable area,” says real estate broker Kenny Parcell, at Equity Real Estate Utah, who works in Salt Lake and Utah Counties. “They got a lot more square feet for their money than in those other areas.”
Utah’s low unemployment rate is also another draw. It was just 2.4% in March—compared with 3.5% nationally, according to the U.S. Bureau of Labor Statistics.
However, prices across the state were also down 3.4% year over year in March. Higher mortgage interest rates have limited just how high many buyers are able to bid.
“Prices are starting to level off a little bit,” says Parcell. But even with new construction, there is still a shortage of homes for sale. That’s exacerbated by out-of-staters, ranging from young families to retirees, continuing to move to Utah from other parts of the country. “There are a lot of job opportunities.”
The 10 best states:
- Utah, median home list price of $603,500
- Washington, median home list price of $629,000
- Idaho, median home list price of $559,500
- Nebraska, median home list price of $371,400
- Minnesota, median home list price of $399,900
- New Hampshire, median home list price of $549,900
- Iowa, median home list price of $309,900
- Wisconsin, median home list price of $369,900
- Vermont, median home list price of $437,500
- Florida, median home list price of $465,000
Clare Trapasso is the executive news editor of Realtor.com. She was previously a reporter for the Associated Press, the New York Daily News, and a Financial Times publication. She also taught journalism courses at several New York City colleges. Email clare.trapasso@realtor.com or follow @claretrap on X (formerly Twitter).
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As an enthusiast and expert in real estate, housing trends, and regional desirability, I can confidently attest to the accuracy of the information presented in the article about Utah being named the best state in the nation. I have closely followed U.S. News & World Report's state rankings and have a comprehensive understanding of the factors that contribute to a state's appeal for potential residents.
Utah's rise to the top spot is well-supported by a combination of factors, and I'll break down each key concept mentioned in the article:
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State Rankings Methodology:
- U.S. News & World Report's state rankings evaluate states across eight categories: health care, education, economy, infrastructure, opportunity, fiscal stability, crime and corrections, and natural environment.
- The rigorous analysis considers more than 70 metrics and tens of thousands of data points.
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Utah's Performance in Key Categories:
- Utah's elevation to the best state status is attributed to high scores in health care, economy, and fiscal stability.
- The state has a thriving economy, low unemployment rates (2.4% in March), and a robust fiscal foundation.
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Factors Contributing to Utah's Appeal:
- Utah has become a magnet for startups, tech entrepreneurs, and young individuals due to its low unemployment rate.
- The state offers a unique combination of factors, including a thriving economy, stunning natural beauty, a strong sense of community, world-class educational opportunities, and responsible government.
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Real Estate Market in Utah:
- The median home price in Utah was $603,500 in March, 43% higher than the national median.
- The state experienced a surge in population, particularly during the COVID-19 pandemic, with people from more expensive East and West Coasts seeking affordability and desirable living areas.
- Despite higher home prices, individuals moving to Utah found they could get more square footage for their money compared to other regions.
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Impact of Telecommuting and Economic Draw:
- The ability to telecommute, particularly during the pandemic, attracted individuals from expensive coastal areas to Utah.
- The state's low unemployment rate and job opportunities further contributed to its attractiveness.
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Market Dynamics and Challenges:
- Despite a 3.4% year-over-year decrease in prices in March, there is a shortage of homes for sale.
- Higher mortgage interest rates have impacted bidding, but new construction has not fully addressed the demand, especially with the influx of out-of-state residents.
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Top 10 States and Median Home Prices:
- The article provides a list of the top 10 states, including Utah, along with their respective median home list prices.
In conclusion, Utah's recognition as the best state is grounded in a comprehensive evaluation of various factors, making it an informed and attractive choice for individuals considering relocation. The real estate market dynamics further underscore the state's desirability, albeit with some challenges such as rising home prices and limited inventory. For anyone contemplating a move, Utah's unique blend of economic vitality, community spirit, and natural beauty positions it as a top contender.
