Marcus Lemonis points out that the sharp increase in housing prices mainly stems from limited supply rather than regulatory issues alone. He highlights the importance of safety permits and inspections, and he challenges the notion that cutting red tape would dramatically reduce housing costs.
According to a recent report, the greatest surge in new home construction is happening primarily in the Midwest and South.
The 2026 housing report card, which assesses all 50 states and the District of Columbia, reveals that states in these regions are performing better than their counterparts in the Northeast and West.
While no state received an A+ rating—indicating that there’s always room for improvement—12 of the 13 top-performing states, located in the Midwest and South, earned grades between B- and A. This assessment is divided evenly between affordability factors and home construction activity.
“This year’s rankings highlight some familiar regional differences but also show significant shifts among states, with new leaders emerging and others experiencing dramatic changes,” noted Joel Berner, a senior economist at Realtor.com.
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In Realtor.com’s Home Price State Report, Indiana, Iowa, and North Carolina received A grades, while Texas earned an A- rating.
Indiana topped the rankings with a score of 76.3 out of 100, receiving an A for excellent affordability and housing construction activity, moving up three spots from its position last year.
The median home price in Indiana stood at $295,810, which takes up about 28% of the median household income of $71,469, well below the 30% affordability cap.
Other states with A grades include Iowa, which has a median listing price of $282,886 and a median household income of $75,991, and South Carolina, last year’s leading state, with a median home price of $363,896 and a median income of $67,758.
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Texas, with a median listing price of $364,749 and median income of $76,585, ranked fourth with an A- grade. North Carolina and Nebraska were the only other states to achieve a B+ rating.
Delaware and Utah saw the largest positive changes, each moving up 12 spots in the rankings, with Delaware rising from 19th to 7th, and Utah from 29th to 17th.
Six states received an F grade. New York, at the bottom of the list, has a median price of $668,173 against a median income of $82,657. The other states earning F ratings, mainly in the Northeast and West, include Massachusetts, Rhode Island, Hawaii, California, and Connecticut.
Most states near the bottom of the rankings remained stagnant compared to the previous year, as many are grappling with high costs of living, strict zoning laws, and prohibitive construction expenses that challenge middle-income buyers.
Three states experienced the most significant drops in the rankings, all falling eight spots: Alabama from 13th to 21st, Maryland from 23rd to 31st, and New Jersey from 35th to 43rd.
Below is a summary of Realtor.com report grades for each state and the District of Columbia:
- Alabama: C
- Alaska: C-
- Arizona: C
- Arkansas: B
- California: F
- Colorado: C+
- Connecticut: F
- Delaware: B
- District of Columbia: D+
- Florida: B
- Georgia: B
- Hawaii: F
- Idaho: C
- Illinois: C
- Indiana: A
- Iowa: A
- Kansas: B
- Kentucky: C
- Louisiana: C
- Main: C-
- Maryland: C
- Massachusetts: F
- Michigan: C
- Minnesota: C+
- Mississippi: C-
- Missouri: C
- Montana: D
- Nebraska: B+
- Nevada: C-
- New Hampshire: D+
- New Jersey: D
- New Mexico: C-
- New York: F
- North Carolina: B+
- North Dakota: C
- Ohio: C+
- Oklahoma State: B
- Oregon: D-
- Pennsylvania: C
- Rhode Island: F
- South Carolina: A
- South Dakota: B
- Tennessee: C
- Texas: A-
- Utah: C+
- Vermont: D+
- Virginia: C+
- Washington: C-
- West Virginia: C
- Wisconsin: C
- Wyoming: C-
