States with better affordability for home buyers and that make it most easy to build new homes are centered in the Midwest and South, according to a new report.
Realtor.com published the 2026 edition of its housing report cards for all 50 states plus the District of Columbia, which showed that states in the Midwest and South outperformed their peers in the Northeast and West.
Although no state earned an A+ grade, suggesting all can improve, 12 of the 13 highest-scoring states were all located in the Midwest and South, receiving grades ranging from B- to A. Half of the grade is based on a measure of affordability, while the other half is based on home construction activity.
“This year’s refresh reveals a familiar regional divide, but also notable changes beneath the surface, with a new state at the top of the class and a handful of states whose scores moved dramatically in one direction or the other,” said Joel Berner, Realtor.com senior economist.
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Realtor.com’s state housing affordability report gave Indiana, Iowa and North Carolina an A grade, while Texas received an A-. (Marc Félix/Bloomberg via Getty Images)
Indiana topped the list with a total score of 76.3 on a 100-point scale, earning an A based on strong affordability and strong home construction activity that helped it climb three places from last year’s rankings.
The median home price in the Hoosier State was $295,810 and required about 28% of the median household income of $71,469, which fell below the 30% affordability threshold.
Other states that will receive A grades include Iowawhich 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.
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Texas ranked fourth with an A grade, considering 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 a B+ rating.
The biggest increases in the report from last year were Delaware and Utahwho each gained 12 places. Delaware moved from 19th to 7th, while Utah saw its ranking move from 29th to 17th.
Realtor.com’s report is based on new construction activity as well as affordability metrics for buyers. (Joshua Lott/Bloomberg via Getty Images)
Six states received F grades on their report cards, with new York ranking last due to a median listing price of $668,173 and a median income of $82,657. The other five states that received an F grade were all located in the Northeast or West, with Massachusetts, Rhode Island, Hawaii, California and Connecticut rounding out the bottom of the list, from worst grade to best.
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Most states at the bottom of the rankings saw their rankings hold or change little from last year as they continue to face high prices, limited building land with restrictive zoning policies, and construction costs beyond what middle-income buyers can afford.
The biggest declines were in three states, all of which fell eight places in the rankings: Alabama fell from 13th to 21st, Maryland fell from 23rd to 31st and New Jersey slipped from 35th to 43rd.
New York slipped to last place in the 2026 rankings. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images)
Here is a list of Realtor.com report scores for each of the 50 states plus the District of Columbia:
Alabama: CAlaska: C-Arizona: CArkansas: BCalifornia: FColorado: C+Connecticut: FDelaware: BDistrict of Columbia: D+Florida: BGeorgia: BHawaii: FIdaho: CIllinois: CIndiana: AIowa: OneKansas: BKentucky: CLouisiana: CMaine: C-Maryland: CMassachusetts: FMichigan: CMinnesota: C+Mississippi: C-Missouri: CMontana: DNebraska: B+Nevada: C-New Hampshire: D+New Jersey: DNew Mexico: C-New York: FNorth Carolina: B+North Dakota: COhio: C+Oklahoma: BOregon: D-Pennsylvania: CRhode Island: FSouth Carolina: ASouth Dakota: BTennessee: CTexas: A-Utah: C+Vermont: D+Virginie: C+Washington: C-West Virginia: CWisconsin: CWyoming: C-GET FOX BUSINESS ON THE GO BY CLICKING HERE