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Realtor.com® Releases New State-by-State Housing Report Card: South and Midwest Dominate in Homebuilding and Affordability

South Carolina (A), Iowa (A-), Texas (A-), Indiana (B+), and North Carolina (B+) earn the highest marks

AUSTIN, Texas , April 24, 2025 /PRNewswire/ -- With a nationwide housing shortage of over 4 million homes, affordability is becoming a growing concern for millions of Americans. Today, Realtor.com® released Grading the States: Affordability & Homebuilding Report Cards, offering a clear snapshot of which states are successfully addressing housing challenges and which are struggling to keep up. See table below for grades for all 50 states.

The rankings for each state are based on two major factors: housing affordability and the ability to meet future supply challenges through new construction. Affordability, one half of the score, includes the REALTORS® Affordability Score and the share of median income spent on a median-priced home. Homebuilding, the other half of the score, measured the permit-to-population ratio and the new construction premium, which is the cost difference between new and existing homes.

"The only real solution to housing affordability is to build more homes," said Damian Eales, CEO of Realtor.com®. "Some states are making progress, but too many others are stuck in a cycle of soaring housing costs and limited inventory. With this report and the Let America Build campaign, we're shining a spotlight on these gaps. We need bold solutions, and we urge federal, state, and local leaders to step up and take action now. It's time to break the cycle and start building now to make homeownership a reality for more Americans."

Realtor.com's Let America Build campaign underscores the need for urgent policy changes to increase the housing supply and make homeownership more accessible and affordable. The campaign calls on lawmakers, industry leaders, and local communities to support smarter zoning, streamlined permitting processes, and incentives for home construction.

Top ranking states strike the right mix of affordability and new construction

Only 18 states—primarily in the Midwest and South—can claim that their median home is affordable to their median earner based on the 30% of income rule. Meanwhile, just seven states—Texas, Florida, California, North Carolina, Georgia, Arizona, and South Carolina—accounted for more than half of all construction permits issued in 2024. On the whole, the highest-ranking states are striking a balance between both affordability and robust homebuilding efforts, while those lower on the list struggle with high housing costs and sluggish construction progress.

"Our state report card rankings reveal stark disparities in housing affordability and homebuilding efforts across the U.S.," said Danielle Hale, chief economist, Realtor.com®. "While some states are leading the way with strong homebuilding activity, others are grappling with high housing prices and sluggish construction. This divide underscores the urgent need for targeted policies and actions to address the nation's 4 million-home supply gap."

South and Midwest lead the way, with South Carolina taking the top spot

The South and Midwest, with ample available land and relatively low listing prices, are home to all of the top grades along our affordability and homebuilding criteria. In fact, the lowest grade earned by a state in the South and Midwest was in the C range. South Carolina earns the highest marks, securing an A grade for its proactive homebuilding efforts that are outpacing demand. Texas and Iowa followed closely behind with A- scores, though for very different reasons—Texas leads with impressive new construction, while Iowa stands out as one of the most affordable states to buy a home. B grades went exclusively to states in the South and Midwest, where construction activity and stronger affordability metrics are concentrated. Other high performers include Indiana, North Carolina, and Georgia, where strong affordability and homebuilding activity are making a notable impact.

The Northeast, West Coast lag behind

On the coasts – and in states like Montana where there's an influx of people migrating from higher-cost regions – high home prices, low affordability and limited new construction continues to be a significant challenge. Grades below D were only given to states in the West and Northeast, where high housing costs and sluggish construction remain persistent challenges. Rhode Island ranks at the bottom of the list, followed by Massachusetts, New York, Hawaii and California, where high prices and sparse construction are making it increasingly difficult for residents to find affordable homes.

States on the Western and Northeastern coasts are generally more regulated and subject to stricter, more complex zoning requirements. Massachusetts, which received low scores in both affordability and homebuilding, serves as an example of how zoning can get in the way of delivering affordable housing. Of Massachusetts' roughly 7 million acres, 76% of them are subject to zoning, according to the National Zoning Atlas, a project dedicated to digitizing, demystifying, and democratizing U.S. zoning codes.

State-by-State Housing Affordability & Homebuilding Report Card

Rank

State

Total
Score

Grade

REALTORS®
Affordability
Score

Median
Listing
Price

Median
Household
Income

Share of
2024
Permits

Share of
Population

New
Construction
Premium

1

South Carolina

75.2

A

0.65

$354,429

$64,898

3.2 %

1.6 %

-8.2 %

2

Iowa

71.6

A-

0.92

$294,600

$73,122

0.8 %

0.9 %

58.4 %

3

Texas

71.5

A-

0.61

$370,663

$73,203

15.3 %

9.2 %

7.5 %

4

Indiana

69.9

B+

0.87

$293,021

$69,674

1.8 %

2.0 %

49.1 %

5

North Carolina

68.8

B+

0.59

$408,663

$68,774

6.4 %

3.3 %

2.6 %

6

South Dakota

67

B

0.59

$380,391

$73,956

0.4 %

0.3 %

11.4 %

7

Nebraska

66.7

B

0.72

$350,229

$74,027

0.7 %

0.6 %

49.4 %

8

Arkansas

65.2

B

0.74

$296,829

$59,274

0.9 %

0.9 %

41.5 %

9

Georgia

64.7

B

0.64

$392,678

$72,877

4.6 %

3.3 %

15.2 %

10

Minnesota

62

B-

0.77

$394,042

$86,272

1.5 %

1.7 %

47.1 %

11

Virginia

61.5

B-

0.73

$434,711

$89,172

2.3 %

2.6 %

39.0 %

12

Louisiana

61.3

B-

0.77

$278,215

$58,060

1.0 %

1.4 %

11.4 %

13

Alabama

60.2

B-

0.71

$328,950

$60,578

1.4 %

1.5 %

16.7 %

14

Florida

59.4

C+

0.52

$445,826

$69,226

11.8 %

6.8 %

-4.0 %

15

Oklahoma

58.4

C+

0.77

$297,540

$63,261

0.9 %

1.2 %

33.4 %

16

Ohio

58.2

C+

0.89

$269,130

$68,488

2.1 %

3.5 %

91.1 %

16

Wisconsin

58.2

C+

0.67

$381,282

$74,195

1.6 %

1.8 %

39.9 %

18

Kentucky

58

C+

0.75

$304,296

$62,837

1.1 %

1.3 %

32.2 %

19

Delaware

57.5

C+

0.58

$491,463

$76,379

0.5 %

0.3 %

29.6 %

20

Kansas

57.1

C

0.82

$303,891

$71,300

0.6 %

0.9 %

105.9 %

21

Arizona

56.5

C

0.50

$499,982

$74,483

4.0 %

2.3 %

-2.7 %

22

Missouri

56.2

C

0.82

$298,696

$68,010

1.2 %

1.8 %

50.9 %

23

Maryland

55.1

C

0.81

$416,558

$97,364

1.2 %

1.8 %

50.9 %

24

West Virginia

54.7

C

0.91

$240,954

$58,432

0.3 %

0.5 %

62.8 %

25

Tennessee

53.1

C

0.55

$433,987

$66,631

3.1 %

2.1 %

15.3 %

26

Idaho

52.2

C

0.42

$571,023

$72,949

1.2 %

0.6 %

-2.0 %

27

Maine

51.1

C

0.59

$440,523

$71,476

0.4 %

0.4 %

40.6 %

27

Colorado

51.1

C

0.55

$599,104

$90,555

2.2 %

1.8 %

5.3 %

29

Utah

51

C

0.49

$602,230

$88,438

1.6 %

1.0 %

9.3 %

30

Illinois

50.1

C

0.86

$316,613

$79,180

1.3 %

3.7 %

75.0 %

31

Michigan

50

C

0.86

$284,762

$69,042

1.5 %

3.0 %

96.4 %

32

North Dakota

49

C

0.73

$359,034

$73,489

0.2 %

0.2 %

45.4 %

33

Pennsylvania

48.3

C

0.82

$306,740

$74,466

1.6 %

3.8 %

89.9 %

34

Nevada

45.7

C-

0.49

$492,789

$71,942

1.4 %

1.0 %

19.2 %

35

New Jersey

45.4

C-

0.58

$563,048

$96,278

2.5 %

2.8 %

74.1 %

36

Washington

44.7

C-

0.51

$636,445

$93,297

2.6 %

2.3 %

18.3 %

37

Mississippi

44.2

C-

0.72

$291,262

$55,030

0.5 %

0.9 %

41.9 %

38

New Mexico

43.2

C-

0.57

$392,571

$61,656

0.5 %

0.6 %

2.4 %

39

Vermont

43

C-

0.56

$493,716

$79,794

0.2 %

0.2 %

51.5 %

40

District of Columbia

42.6

C-

0.67

$610,723

$98,916

0.1 %

0.2 %

0.2 %

41

New Hampshire

42.2

C-

0.57

$572,784

$94,929

0.3 %

0.4 %

38.7 %

42

Wyoming

41.2

C-

0.56

$465,295

$73,733

0.1 %

0.2 %

19.6 %

43

Alaska

40.4

C-

0.73

$417,738

$86,275

0.1 %

0.2 %

30.3 %

44

Montana

35.2

D

0.40

$634,523

$69,683

0.4 %

0.3 %

14.7 %

45

Oregon

29.8

F

0.46

$563,896

$78,022

1.0 %

1.3 %

2.0 %

46

Connecticut

28.3

F

0.64

$517,849

$89,717

0.4 %

1.1 %

68.2 %

47

California

19.5

F

0.43

$756,185

$92,605

6.8 %

11.7 %

-7.1 %

48

Hawaii

15.8

F

0.45

$822,065

$91,385

0.2 %

0.4 %

26.2 %

49

New York

13.2

F

0.50

$664,622

$81,057

3.1 %

5.8 %

76.2 %

50

Massachusetts

12.6

F

0.48

$781,758

$96,584

1.0 %

2.1 %

42.8 %

51

Rhode Island

12.2

F

0.47

$537,521

$80,791

0.1 %

0.3 %

43.8 %

Methodology

Grades are based on the following score ranges: A+ (77.5+), A (72.5-77.5), A- (70-72.5), B+ (67.5-70), B (62.5-67.5), B- (60-62.5), C+ (57.5-60), C (47.5-57.5), C- (40-47.5), D+ (37.5-40), D (32.5-37.5), D- (30-32.5), and F (0-30).

View the full report, interactive map and methodology at https://www.realtor.com/research/state-report-cards-2025/.

About Realtor.com®

Realtor.com ® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media Contact: Sara Wiskerchen, press@realtor.com

 

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