Indiana Earns Top Marks, New York Falls Short: Realtor.com®'s 2026 State Report Cards for Homebuilding, Affordability Reveal a Nation Divided
South and Midwest sweep every A and B grade; New York falls to last place with a score of 8.5 out of 100; Northeast ranks among the lowest performing nationally
AUSTIN, Texas, June 15, 2026 /PRNewswire/ -- Indiana just claimed America's top housing market title, and New York hit rock bottom. In the second annual Realtor.com® Affordability & Homebuilding Report Cards released today, Indiana vaults from No. 4 to No. 1 — earning an A grade for keeping homes within reach of everyday earners while building at a healthy pace. New York finishes dead last at No. 51, where a typical family has to spend more than half of its monthly income on mortgage payments in order to afford the median priced home, and it's building half the new homes the state actually needs.
"A year ago, we launched this report to give policymakers a clear benchmark for progress at the state level," said Danielle Hale, chief economist at Realtor.com®. "What the 2026 update shows is that the states making real headway are the ones doing both things well — keeping homes within reach of today's median earners and building enough new supply to meet demand. Indiana's rise to the top of the class is a textbook example of that balanced approach. Meanwhile, the bottom of the rankings has barely budged, which shows how deep these structural challenges run. With a nationwide housing shortage still near 4 million homes, the gap between America's best and toughest housing markets isn't narrowing, it's growing."
Indiana Takes the Top Spot
Indiana jumps from No. 4 to No. 1, earning an A (76.3), the highest score in the nation. A $295,810 median home price requires the typical household to spend just 28.3% of its monthly income on mortgage payments, well under the 30% threshold that defines affordability. A REALTORS® Affordability Score of 0.89 ranks among the highest in the country. Indiana doesn't dominate any single metric, instead it wins by doing everything well.
The top five holds familiar names from last year's inaugural rankings:
- (2) Iowa (A, 75.8) holds strong as the nation's affordability leader, with the lowest share of income required to purchase a median home (25.4%) and the highest REALTORS® Affordability Score (0.96) in the country.
- (3) South Carolina (A, 75.2) remains the nation's building champion with a permit-to-population ratio of 1.96, nearly double its population share, and a rare negative new construction premium, meaning newly built homes are actually 5.7% cheaper than existing ones.
- (4) Texas (A-, 71.0) continues to lead all states in raw construction volume, accounting for 14.6% of all building permits issued, far above its 9.3% population share.
- (5) North Carolina (B+, 68.6) mirrors South Carolina's building success, with a permit-to-population ratio of 1.84 and a slightly negative new construction premium of -1.5%, meaning builders are delivering homes priced just below existing inventory.
The Regional Divide: Every A and B Grade Belongs to the South or Midwest
The trend first identified in last year's report has sharpened considerably. Every A and B grade belongs to a state in the South or Midwest. Southern states average a score of 60.4 (average rank: 16); Midwestern states average 60.9 (average rank: 16). Western states average 41.8 (average rank: 35). The Northeast averages just 30.0 (average rank: 43) — and it shows: all six F grades went to states in those two regions alone.
Only 11 states can claim that a median-priced home is affordable to a median earner under the 30%-of-income rule, and all but one of them are in the South or Midwest.
"The regional divide we saw last year is a continuing structural feature of the American housing market," said Joel Berner, senior economist, Realtor.com. "The states at the top of our rankings benefit from available land, lower regulatory barriers, and a building culture that prioritizes volume and accessibility. What's particularly encouraging is seeing states like South Carolina and North Carolina deliver newly built homes that actually cost less than existing inventory. The challenge now is getting more states to replicate that model before the gap becomes impossible to close."
The Biggest Movers
Notable climbs in the 2026 rankings:
- Delaware (+12 spots, No. 7, B) is one of this year's most improved states, vaulting into the top 10 on the strength of above-average building activity (permit-to-population ratio of 1.46) and a strong median income of $87,667.
- Utah (+12 spots, No. 17, C+) matches Delaware's leap, driven by an exceptional permit-to-population ratio of 1.82, a clear sign that aggressive construction can improve a state's trajectory even when current prices remain elevated.
- Colorado (+9 spots, No. 18, C+) also climbed significantly, with a healthy permit-to-population ratio of 1.34 and a relatively contained new construction premium of 9.6%.
- Kansas (+7 spots, No. 13, B) rose on the strength of its affordability numbers: a median priced home of $292,632 requires just 27.0% of median income, with a REALTORS® Affordability Score of 0.85.
On the other side, Alabama, Maryland, and New Jersey each fell eight spots — the largest declines in the dataset — as building activity softened and affordability pressures mounted.
New York Falls to Last Place
New York scores 8.5 out of 100, the lowest in the nation, and earns an F grade. A median listing price of $668,173 consumes 55.2% of a typical household's income each year. New York's permit-to-population ratio of 0.45 means the state builds at less than half the rate its population share demands — and a 17% year-over-year permitting slowdown made it worse. A 73.9% new construction premium confirms the homes being built are far out of reach for typical buyers.
New York, Massachusetts, Rhode Island, Hawaii, Connecticut and California all carry F grades for the second consecutive year.
Bold Policy Is the Only Path Forward
States climbing the rankings share a common denominator: they build more, regulate less and deliver homes buyers can actually afford. States at the bottom share the opposite. More permissive zoning, streamlined permitting, and incentives for competitively priced construction are not aspirational — they are proven levers that are already moving the rankings for states willing to use them.
Realtor.com®'s Let America Build campaign calls on federal, state and local leaders to tear down the barriers to homebuilding driving the nation's 4-million-home shortage. States that act will likely see positive benefits and the states that don't are expected to fall further behind.
State-by-State Housing Affordability & Homebuilding Report Card (2026)
Rank | State | Total Score | Grade | REALTORS® Affordability Score | Median Listing Price | Median Household Income | Share of 2025 Permitted Units | Share of Population | New Construction Premium |
1 | Indiana | 76.3 | A | 0.89 | $295,810 | $71,469 | 2.08 % | 2.04 % | 40.5 % |
2 | Iowa | 75.8 | A | 0.96 | $282,886 | $75,991 | 0.94 % | 0.95 % | 56.0 % |
3 | South Carolina | 75.2 | A | 0.68 | $363,896 | $67,758 | 3.19 % | 1.63 % | -5.7 % |
4 | Texas | 71 | A- | 0.66 | $364,749 | $76,585 | 14.60 % | 9.28 % | 7.6 % |
5 | North Carolina | 68.6 | B+ | 0.62 | $413,044 | $71,489 | 6.02 % | 3.28 % | -1.5 % |
6 | Nebraska | 68.6 | B+ | 0.75 | $346,210 | $76,990 | 0.74 % | 0.59 % | 49.9 % |
7 | Delaware | 66.1 | B | 0.70 | $486,044 | $87,667 | 0.45 % | 0.31 % | 16.0 % |
8 | South Dakota | 65.8 | B | 0.61 | $379,491 | $75,671 | 0.38 % | 0.27 % | 7.1 % |
9 | Arkansas | 65.2 | B | 0.74 | $299,817 | $60,653 | 1.08 % | 0.91 % | 33.3 % |
10 | Oklahoma | 64.5 | B | 0.79 | $299,410 | $65,044 | 1.06 % | 1.21 % | 29.4 % |
11 | Florida | 63.7 | B | 0.59 | $432,742 | $72,722 | 12.28 % | 6.86 % | -3.1 % |
12 | Georgia | 63 | B | 0.68 | $392,112 | $75,118 | 4.24 % | 3.31 % | 15.1 % |
13 | Kansas | 62.6 | B | 0.85 | $292,632 | $74,030 | 0.70 % | 0.87 % | 77.6 % |
14 | Minnesota | 59.8 | C+ | 0.80 | $388,212 | $88,572 | 1.45 % | 1.71 % | 48.8 % |
15 | Virginia | 59.4 | C+ | 0.74 | $446,963 | $92,714 | 2.33 % | 2.60 % | 30.9 % |
15 | Ohio | 59.4 | C+ | 0.88 | $277,348 | $70,196 | 2.32 % | 3.48 % | 84.6 % |
17 | Utah | 58.2 | C+ | 0.57 | $589,911 | $95,601 | 1.88 % | 1.04 % | 4.7 % |
18 | Colorado | 57.8 | C+ | 0.62 | $579,391 | $95,479 | 2.36 % | 1.76 % | 9.6 % |
19 | Louisiana | 57.5 | C | 0.79 | $278,892 | $59,290 | 1.01 % | 1.35 % | 10.5 % |
20 | Arizona | 57.3 | C | 0.56 | $484,526 | $78,786 | 3.57 % | 2.23 % | 1.5 % |
21 | Alabama | 56.7 | C | 0.74 | $330,806 | $64,027 | 1.32 % | 1.52 % | 13.0 % |
22 | Missouri | 55.5 | C | 0.83 | $301,158 | $69,725 | 1.20 % | 1.83 % | 48.1 % |
23 | Wisconsin | 55.2 | C | 0.67 | $388,098 | $75,737 | 1.78 % | 1.75 % | 38.0 % |
24 | Kentucky | 54.8 | C | 0.76 | $306,600 | $64,597 | 1.01 % | 1.35 % | 23.5 % |
25 | West Virginia | 54.6 | C | 0.88 | $259,523 | $60,185 | 0.29 % | 0.52 % | 56.7 % |
26 | Idaho | 52.8 | C | 0.45 | $580,814 | $77,609 | 1.25 % | 0.59 % | -4.6 % |
27 | Tennessee | 52.4 | C | 0.58 | $430,476 | $69,684 | 3.02 % | 2.14 % | 14.0 % |
28 | Michigan | 51.7 | C | 0.85 | $290,329 | $70,131 | 1.64 % | 2.96 % | 89.1 % |
29 | North Dakota | 50.2 | C | 0.74 | $364,259 | $77,692 | 0.17 % | 0.23 % | 48.7 % |
30 | Illinois | 49.7 | C | 0.87 | $307,674 | $80,648 | 1.31 % | 3.72 % | 67.2 % |
31 | Maryland | 49.4 | C | 0.81 | $434,302 | $99,340 | 0.93 % | 1.83 % | 46.7 % |
32 | Pennsylvania | 48.2 | C | 0.82 | $312,487 | $74,855 | 1.82 % | 3.82 % | 79.9 % |
33 | Maine | 47.5 | C- | 0.60 | $459,348 | $75,202 | 0.47 % | 0.41 % | 44.8 % |
34 | Nevada | 45.8 | C- | 0.52 | $491,936 | $74,821 | 1.30 % | 0.96 % | 18.5 % |
35 | Mississippi | 44.5 | C- | 0.72 | $294,539 | $56,831 | 0.59 % | 0.86 % | 36.3 % |
36 | Wyoming | 44.1 | C- | 0.59 | $472,428 | $77,733 | 0.15 % | 0.17 % | 17.1 % |
37 | Alaska | 42.6 | C- | 0.76 | $436,408 | $94,247 | 0.06 % | 0.22 % | 22.3 % |
38 | Washington | 40.8 | C- | 0.54 | $638,185 | $96,120 | 2.45 % | 2.34 % | 15.1 % |
39 | New Mexico | 40.1 | C- | 0.59 | $398,774 | $64,393 | 0.54 % | 0.62 % | 6.8 % |
40 | Vermont | 39.3 | D+ | 0.56 | $504,633 | $81,929 | 0.17 % | 0.19 % | 32.5 % |
41 | District of Columbia | 38.9 | D+ | 0.72 | $589,721 | $106,049 | 0.11 % | 0.20 % | 13.7 % |
42 | New Hampshire | 38 | D+ | 0.58 | $586,123 | $96,809 | 0.35 % | 0.41 % | 37.5 % |
43 | New Jersey | 36.4 | D | 0.60 | $556,344 | $99,357 | 2.25 % | 2.79 % | 71.6 % |
44 | Montana | 35.4 | D | 0.41 | $628,387 | $72,066 | 0.36 % | 0.33 % | 6.8 % |
45 | Oregon | 30.8 | D- | 0.48 | $564,005 | $80,356 | 1.05 % | 1.25 % | 1.4 % |
46 | Connecticut | 29 | F | 0.67 | $518,892 | $95,392 | 0.49 % | 1.08 % | 72.0 % |
47 | California | 21.7 | F | 0.47 | $742,305 | $95,065 | 7.34 % | 11.51 % | -3.8 % |
48 | Hawaii | 16.6 | F | 0.49 | $767,360 | $94,556 | 0.26 % | 0.42 % | 31.1 % |
49 | Rhode Island | 11.8 | F | 0.47 | $563,235 | $85,698 | 0.12 % | 0.33 % | 35.0 % |
50 | Massachusetts | 11.2 | F | 0.50 | $763,660 | $98,170 | 0.85 % | 2.09 % | 37.2 % |
51 | New York | 8.5 | F | 0.51 | $668,173 | $82,657 | 2.66 % | 5.85 % | 73.9 % |
Methodology
The 2026 report cards are largely based on data with a 2025 reference period. The REALTORS® Affordability Score is derived from the REALTORS® Affordability Distribution Curve, which examines how many listings are affordable to those in a particular income percentile. The Affordability Score varies between 0 and 2 and is a calculation that is equal to twice the area below the Affordability Distribution Curve on a graph. Median list price is calculated for each state across Realtor.com listings active in 2025. Median Household Income comes from 2025 estimates by Claritas. Permit data comes from the U.S. Census Bureau's Building Permit Survey, and each state's total is divided by the national total to compute the share. Population data comes from 2025 Census Bureau estimates, and each state's total is divided by the national total to compute the share. The new-construction premium comes from comparing the median prices of Realtor.com listings grouped into new builds and existing homes for each state.
About Realtor.com®
For over 30 years, Realtor.com® has connected buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 real estate site REALTOR® agents recommend, Realtor.com® delivers 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: Mallory Micetich, [email protected]
SOURCE Realtor.com
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