A recent report highlights that the Midwest and South lead the nation in homebuyer affordability and new home construction. These regions are setting the pace, according to a comprehensive analysis by Realtor.com.
The 2026 edition of Realtor.com’s housing report cards assessed all 50 states, along with the District of Columbia, revealing that the Midwest and South outshine the Northeast and West in these key areas.
Although no state achieved a perfect A+ rating, 12 out of the 13 top-performing states were in the Midwest and South, earning grades from B- to A. The report bases half of its evaluation on housing affordability, with the other half focused on the level of homebuilding activity.
“This year’s update underscores persistent regional differences but also uncovers significant changes, including a new leader and several states that experienced notable shifts in their scores,” remarked Joel Berner, a senior economist at Realtor.com.
Indiana emerged as the frontrunner, scoring 76.3 out of 100. The state secured an A grade due to its robust affordability and active homebuilding sector, climbing three positions from the previous 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 Utah saw its ranking rise from 29th to 17th.
Six states received F grades on their report cards, with New York ranking last due to a $668,173 median listing price and median income of $82,657. The other five states that received F grades were all located in the Northeast or West, with Massachusetts, Rhode Island, Hawaii, California and Connecticut rounding out the bottom of the list in order of the worst grade to the best.
Most of the states near the bottom of the rankings saw their rankings hold steady or change little from a year ago, as they continue to face high prices, limited land for building with restrictive zoning policies, and building costs outpacing what middle-income buyers can afford.
The biggest drops were three states which all fell eight spots in the rankings – Alabama fell from 13th to 21st, Maryland dropped from 23rd to 31st, and New Jersey slipped from 35th to 43rd.
Here’s the list of the Realtor.com report’s grades for each of the 50 states as well as 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-