NBC News Home Buyer Index

There are areas in the U.S. that are considered to be the least difficult places to buy a home, according to a new real estate indicator.

When the counties are sorted by index rank, Iroquois County, Illinois is the least difficult market to buy a home, according to the NBC News Home Buyer Index. 

The following counties ranked as the least difficult areas when sorted by the four contributing factors:

1. Cost: Iroquois County, Illinois is the most cost-effective or affordable housing market among measured counties in the U.S.
2. Competition: Somervell County, Texas is the least competitive housing market of the counties measured in the U.S.
3. Scarcity: Imperial County, California is the least scarce housing market among measured areas.
4. Economic Instability: Macon County, Tennessee has the most stable local economy among measured areas.

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The index evaluates cost, competition, scarcity and economic instability.

Cost, the most heavily weighted element, measures how much a home costs relative to household incomes and inflation, as well as expenses like insurance costs, according to NBC News.

Competition looks into the level of demand in an area or how many buyers are on the market for a home.

Scarcity refers to an area’s supply of listed homes for sale and how many more are expected to enter the market in the coming month.

And finally, economic instability considers an area’s market volatility, unemployment levels and interest rates.

The NBC News Home Buyer Index was developed by NBC News alongside housing experts, such as a real estate industry analyst and a bank economist from the Federal Reserve Bank of Atlanta.

On a scale from zero to 100, the index score represents the level of difficulty to buy a home in a U.S. county: The greater the value, the harder it is to buy a home in that area, according to NBC.

But, to compare counties with one another, it is important to consider the index rank as “ranks provide context to the scores,” said Joe Murphy, a data editor at NBC News who co-created the index.

A low index rank — or closer to the value of 1,310, the number of counties measured in this month’s report — suggests the county has better market conditions for potential buyers. In other words, a county with an index rank of number one “is the worst,” Murphy said.

For most Americans, buying — and even maintaining — a home in the U.S. remains costly.

The median sales price of houses sold in the U.S. was $420,800 in the first quarter of 2024, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau via the Federal Reserve.

On top of the high cost, the 30-year fixed rate mortgage in the U.S. is still close to 7%. Borrowing costs are unlikely to significantly change as the Fed held rates steady at its June…