Best Affordability for Home Buyers

A recent report highlights that the most significant growth in new home construction is taking place mainly in the Midwest and South.

The 2026 housing report card, which evaluates all 50 states and the District of Columbia, indicates that states in these regions are performing better compared to their counterparts in the Northeast and West.

No states received an A+ rating, pointing to the fact that all have areas where they can improve. However, 12 of the 13 states with the highest ratings, all from the Midwest and South, scored between B- and A. Half of these grades are based on affordability metrics, while the other half focus on construction activity.

Joel Berner, a senior economist at Realtor.com, noted that while the report shows familiar regional disparities, it also indicates some surprising shifts, with new states emerging as top performers and others experiencing dramatic changes in their rankings.

Indiana ranked first with a score of 76.3 out of 100, achieving an A rating due to strong affordability and housing construction activities, which is an improvement from last year’s position.

The median home price in Indiana is $295,810, which accounts for about 28% of the state’s median household income of $71,469, falling below the affordability threshold of 30%.

Iowa also scored an A grade, with a median listing price of $282,886 and a median household income of $75,991. Last year’s leader, South Carolina, has a median listing price of $363,896 and a median income of $67,758, also earning an A grade.

Texas, with a median listing price of $364,749 and a median income of $76,585, ranked fourth with an A- grade. North Carolina and Nebraska were the only other states to receive a B+ grade.

Delaware and Utah experienced the most notable jumps in the rankings, each moving up 12 spots. Delaware climbed from 19th to 7th, while Utah rose from 29th to 17th.

Six states received an F rating, with New York at the bottom of the list, largely due to its median listing price of $668,173 combined with a median income of $82,657. The other states at the bottom were all located in the Northeast or West: Massachusetts, Rhode Island, Hawaii, California, and Connecticut.

Many of the lower-ranked states showed little improvement compared to last year, as they continue to contend with high costs of living, strict zoning laws curbing development, and construction expenses that most middle-income buyers can’t handle.

Three states recorded significant declines, each dropping eight spots. Alabama fell from 13th to 21st place, Maryland from 23rd to 31st, and New Jersey dropped from 35th to 43rd.

Here’s a summary of the grades for all states 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
• Maine: 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: 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-