Top 25 states where homes are becoming more valuable

If you're looking to buy a home, it's smart to analyze the real estate market by state. You might want to buy in a state where real estate values are rising, so you can get the highest return on investment if you eventually decide to sell.

To determine the states where real estate values are increasing the most and least, GOBankingRates analyzed the change in home values over the last five years in all 50 states plus Washington, D.C., with rankings based on monthly, quarterly, yearly and five-year changes.

Click through to see where home values are rising the most and least.

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States where homes are becoming more valuable

States Where Home Values Increased the Most

The list of states where home values are increasing the most includes many of the usual suspects — that is, Pacific, Mountain and Southwest states — that have been generally seeing heavy migration and increases in housing metrics in recent years, as well as some wildcards.

Click through to find out the states where home values increased the most. 

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25. New Hampshire

Current median home value: $253,600

In New Hampshire, home values are continuing to increase — albeit not by much — while inventory continues tighten, according to data from the New Hampshire Association of Realtors. 

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24. Minnesota

Current median home value: $213,200

Minnesota is home to the best city for aspiring millennial homeowners, a previous GOBankingRates study found. Although home prices are relatively high in Minneapolis, it still has affordable mortgages, plus high salaries and employers that offer job perks, which appeals to young buyers. 

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23. Massachusetts

Current median home value: $386,500

Many people already can't afford homes in Massachusetts. A separate GOBankingRates study found that 75.7 percent of households would not be able to afford a home in Boston. 

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22. Tennessee

Current median home value: $147,100

Tennessee overall has seen home values rise at a high rate, and the rate is even higher in some areas. Nashville has seen double-digit growth in home values over the last two years, a 2017 GOBankingRates study found

Photo credit: AOL 

21. Mississippi

Current median home value: $120,400

Mississippi experienced its first seller's market in years in 2017 thanks to sales prices rising and the time that it takes to find a buyer decreasing, the SunHerald reported. 

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20. Nebraska

Current median home value: $157,200

Nebraska experienced one of the smallest dips in real estate prices caused by the recession, according to data from CoreLogic. And while home prices have increased less than 5 percent over the last five years, they increased over 24 percent from 2007 to 2017, a previous GOBankingRates study found. 

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19. South Dakota

Current median home value: $180,900

Sioux Falls, S.D., has recently experienced a housing boom, the Associated Press reported. The city is hoping the real estate boom will be followed by a boom in businesses in the area. 

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18. Georgia

Current median home value: $162,100

Thanks to rising home values, Atlanta is one of the best cities to own an investment property, a separate GOBankingRates study found. The city also has experienced strong growth in population and employment. 

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17. Montana

Current median home value: $212,200

Now is a good time to sell a home in Montana. In the state capital of Helena, real estate prices are up and inventory is low, the Independent Record reported. 

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16. Hawaii

Current median home value: $624,200

Hawaii has the highest median real estate prices by state, and values are rising. 

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15. Rhode Island

Current median home value: $268,000

Even though home prices are going up, sales are going up in Rhode Island too. Home sales increased in Rhode Island for the fifth consecutive year in 2017, according to the Rhode Island Association of Realtors. 

Photo credit: AOL 

14. New York

Current median home value: $309,100

Home prices in New York, and particularly New York City, have become unaffordable for most households. A separate GOBankingRates study found that 71 percent of households in NYC can't afford to own a home there. 

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13. Maine

Current median home value: $219,700

Maine home prices increased 9.85 percent year over year, though the volume of sales has remained flat, the Portland Press Herald reported. 

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12. Texas

Current median home value: $175,200

Home values are rising, but housing is still relatively affordable in Texas, which is home to three of the best areas for aspiring millennial homebuyers: Austin, Dallas-Fort Worth and San Antonio, a separate GOBankingRates study found.

Don't Miss: These 20 Cities Are Hot Seller's Markets, Study Finds 

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11. Idaho

Current median home value: $200,300

Although home values have risen month over month and year over year in Idaho, they dropped 0.35 percent quarter over quarter. 

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10. Arizona

Current median home value: $233,400

Even though home values in Arizona are rising, they still haven't reached pre-recession levels, a separate GOBankingRates study found

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9. Michigan

Current median home value: $138,700

Real estate prices are increasing, while inventory remains low, making for a very competitive housing market in Michigan, MLive reported. 

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8. Florida

Current median home value: $217,300

Florida is home to the hottest neighborhood for real estate in the U.S., a separate GOBankingRates study found. Jungle Terrace in St. Petersburg saw home prices nearly double from 2016 to 2017. 

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7. Utah

Current median home value: $264,100

Rising home values in Utah might not be a good thing: The state is currently facing an affordable housing crisis, the Deseret News reported. 

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6. Oregon

Current median home value: $320,500

Oregon has a limited real estate inventory, plus an influx of people coming in, the Source Weekly reported. People originally flocked to Oregon to escape the high housing costs of places like California, CNBC reported; however, many of those people might not be able to afford homes now, as rising demand and decreasing supply have led to home prices continuing to rise. 

Photo credit: Getty

5. Colorado

Current median home value: $348,400

While the median home value in Colorado is nearly $350,000, it's even greater in the Denver metro area: $400,000 as of February 2018. Home prices continue to rise in Denver, as does inventory, Denver's ABC affiliate reported. 

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4. California

Current median home value: $529,900

California home prices are rising, and it's known to be one of the most expensive places to live. This is just one of the many reasons California real estate differs from every other state

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3. Washington

Current median home value: $355,600

Seattle is one of the hottest housing markets in the U.S., and the state as a whole is also booming in terms of home values. This could be due to an influx of people who have moved to the state for tech jobs, as Seattle has become the top tech market after San Francisco, GeekWire reported. 

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2. Delaware

Current median home value: $245,900

Delaware has experienced the greatest home value increases month over month (2.33 percent), quarter over quarter (8.33 percent) and year over year (14.48 percent) of all the states. 

Photo credit: AOL 

1. Nevada

Current median home value: $261,000

Nevada has the largest five-year change in home values of all the states. It's also one of the states experiencing a potential housing bubble, found a separate GOBankingRates study. 

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Real Estate Values by State: Trends Over the Years

Overall, real estate values have increased in the U.S. by 5.91 percent over the last five years and 6.68 percent year over year. The current national median home value is $207,600.

State by state, real estate values have been affected by factors such as supply and demand — states that have seen a heavy influx of migration tend to see increasing home values — and the age of homes in the state, with states with older homes tending to see slower increases in values.

Click through to find out the best and worst states to build a home.

Methodology: GOBankingRates analyzed all 50 U.S. states plus Washington, D.C., and scored in terms of four factors: (1) Month-over-month change in Zillow median home value, weighted half because this tends to be more volatile than longer intervals; (2) Quarter-over-quarter change in Zillow median home value, weighted half because this tends to be more volatile than longer intervals; (3) Year-over-year change in Zillow median home value, weighted double; (4) Five-year change in Zillow median home value, weighted double. Median home value data represent all homes as of January 2018, the most updated data available. 

Photo credit: GO Banking Rate

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This article originally appeared on GOBankingRates.com: Top 25 States Where Homes Are Becoming More Valuable

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