Housing report cards crown Midwest, South as leaders as 6 states fail out
The states with the best affordability for homebuyers and that are facilitating the most construction of new homes are centered in the Midwest and South, according to a new report.Realtor.com released the 2026 edition of its housing report cards for all 50 states plus the District of Columbia, which showed that states across the Midwest and South outperformed their peers from the Northeast and West.While no states earned an A+ grade, which suggests that all have room for improvement, 12 of the 13 states with the highest grades were all located in the Midwest and South, receiving grades in the B- to A range.Half of the grade is based on an affordability measure, while the other half is based on homebuilding activity.“This year’s refresh reveals a familiar regional divide, but also some notable shifts beneath the surface, with a new state at the top of the class and a handful of states whose grades moved dramatically in either direction,” said Realtor.com senior economist Joel Berner.Indiana topped the list with a total score of 76.3 on the 100-point scale, earning an A based on strong affordability and homebuilding activity that helped it rise three spots from last year’s rankings. The median-priced home in the Hoosier State was $295,810 and required about 28% of the median household income of $71,469, which fell below the 30% benchmark for affordability.Other states to receive A grades include Iowa, which has a median listing price of $282,886 and a median household income of $75,991, as well as last year’s leader South Carolina, with a median listing price of $363,896 and a median income of $67,758.Texas ranked fourth with an A- grade, given the Lone Star State’s median listing price of $364,749 and median income of $76,585.
North Carolina and Nebraska were the only two states to receive B+ grades.The biggest risers in the report compared with last year were Delaware and Utah, which each jumped 12 spots.Delaware rose from 19th to 7th, while Ut...