Midwest and Southern states dominate housing report cards: See how yours scored
The Best States for Home Affordability and Construction
A recent report by Realtor.com has revealed that states in the Midwest and South are leading the way in terms of home affordability for buyers and new home construction. The report focuses on all 50 states plus the District of Columbia, highlighting key factors that contribute to the housing market in each region.
Realtor.com released its housing report cards for 2026, showing that states in the Midwest and South are outperforming those in the Northeast and West. While no states received an A+ grade, 12 out of the top 13 states with the highest grades were located in the Midwest and South, scoring in the B- to A range. The grades are based on affordability and homebuilding activity.
Indiana ranked first with a total score of 76.3, earning an A grade for its strong affordability and active homebuilding market. Other states like Iowa, South Carolina, and Texas also received high grades for their housing markets.
On the other hand, states like New York, Massachusetts, Hawaii, California, and Connecticut received F grades due to high median listing prices and limited affordability. These states are facing challenges such as high prices, limited land availability, and building costs that exceed what middle-income buyers can afford.
The report also highlighted some significant changes from the previous year, with states like Delaware and Utah making significant jumps in the rankings. Meanwhile, states like Alabama, Maryland, and New Jersey saw a decline in their rankings.
Overall, the report provides insights into the housing market across the country, showcasing which states are excelling in terms of affordability and new home construction.
State Grades:
- 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-
