Home building and affordability across the United States
Although for-sale inventory is rebounding, there's still a large gap between supply and demand. Aspiring home buyers struggle with too few options, especially at the lower end of the market.
A report from Realtor.com graded the entire country on how effectively those issues are being addressed. See how every state measured up.
Check your home buying options. Start hereHousing market grades, state-by-state
The lack of for-sale options and the dual financial barriers to entry — high property values and high mortgage rates — have kept homeownership at arm's length for many house hunters.
But every locality can vary greatly in price and the amount of red tape in front of creating more homes. Realtor.com scored every state to determine where home buyers can find financially accessible housing and where new construction can more easily flourish. Overall, the South and Midwest received the highest marks with their combinations of relative affordability and laxed regulations.
| Grade | Midwest | Northeast | South | West |
| A | 1 | 0 | 2 | 0 |
| B | 4 | 0 | 6 | 0 |
| C | 7 | 5 | 9 | 9 |
| D | 0 | 0 | 0 | 1 |
| F | 0 | 4 | 0 | 3 |
| Total | 12 | 9 | 17 | 13 |
"Our state report card rankings reveal stark disparities in housing affordability and homebuilding efforts across the U.S. While some states are leading the way with strong homebuilding activity, others are grappling with high housing prices and sluggish construction," said Danielle Hale, chief economist at Realtor.com.
Realtor.com's total score splits into affordability (share of median income to pay for a median-priced property and Affordability Score) and homebuilding activity (building permits per capita and New-Construction Premium). Affordability Score ranges from 0 to 2, with higher numbers representing better affordability. New-Construction Premium measures the price difference between new and existing homes.
Realtor.com's grading system looks like this:
| Total Score | Grade |
| 77.5+ | A+ |
| 72.5-77.5 | A |
| 70-72.5 | A- |
| 67.5-70 | B+ |
| 62.5-67.5 | B |
| 60-62.5 | B- |
| 57.5-60 | C+ |
| 47.5-57.5 | C |
| 40-47.5 | C- |
| 37.5-40 | D+ |
| 32.5-37.5 | D |
| 30-32.5 | D- |
| 0-30 | F |
The only state to get an A, South Carolina led the nation with a score of 75. Right behind, were 72's in Iowa and Texas. Indiana's 70 and North Carolina's 69 rounded out the top five.
On the other end of the spectrum, seven states flunked. These are generally smaller states with less land to develop, have stricter development laws, are expensive, or a combination of the three. Rhode Island had the lowest score in the nation with a 12.2. Massachusetts went just above with a 12.6, then came 13.2 in New York, 15.8 in Hawaii, 19.5 in California, 28.3 in Connecticut, and 29.8 in Oregon.
The table below shows the full report card for every state, ranked by their total score, according to Realtor.com:
| Rank | State | Total Score | Grade | Affordability Score | 2024 Median Listing Price | 2024 Median Household Income | Share of 2024 Permits | 2024 Share of Population | New Construction Premium |
| 1 | South Carolina | 75 | A | 0.65 | $354,429 | $64,898 | 3.20% | 1.60% | -8.20% |
| 2 | Iowa | 72 | A- | 0.92 | $294,600 | $73,122 | 0.80% | 0.90% | 58.40% |
| 3 | Texas | 72 | A- | 0.61 | $370,663 | $73,203 | 15.30% | 9.20% | 7.50% |
| 4 | Indiana | 70 | B+ | 0.87 | $293,021 | $69,674 | 1.80% | 2.00% | 49.10% |
| 5 | North Carolina | 69 | B+ | 0.59 | $408,663 | $68,774 | 6.40% | 3.30% | 2.60% |
| 6 | South Dakota | 67 | B | 0.59 | $380,391 | $73,956 | 0.40% | 0.30% | 11.40% |
| 7 | Nebraska | 67 | B | 0.72 | $350,229 | $74,027 | 0.70% | 0.60% | 49.40% |
| 8 | Arkansas | 65 | B | 0.74 | $296,829 | $59,274 | 0.90% | 0.90% | 41.50% |
| 9 | Georgia | 65 | B | 0.64 | $392,678 | $72,877 | 4.60% | 3.30% | 15.20% |
| 10 | Minnesota | 62 | B- | 0.77 | $394,042 | $86,272 | 1.50% | 1.70% | 47.10% |
| 11 | Virginia | 62 | B- | 0.73 | $434,711 | $89,172 | 2.30% | 2.60% | 39.00% |
| 12 | Louisiana | 61 | B- | 0.77 | $278,215 | $58,060 | 1.00% | 1.40% | 11.40% |
| 13 | Alabama | 60 | B- | 0.71 | $328,950 | $60,578 | 1.40% | 1.50% | 16.70% |
| 14 | Florida | 59 | C+ | 0.52 | $445,826 | $69,226 | 11.80% | 6.80% | -4.00% |
| 15 | Oklahoma | 58 | C+ | 0.77 | $297,540 | $63,261 | 0.90% | 1.20% | 33.40% |
| 16 | Ohio | 58 | C+ | 0.89 | $269,130 | $68,488 | 2.10% | 3.50% | 91.10% |
| 16 | Wisconsin | 58 | C+ | 0.67 | $381,282 | $74,195 | 1.60% | 1.80% | 39.90% |
| 18 | Kentucky | 58 | C+ | 0.75 | $304,296 | $62,837 | 1.10% | 1.30% | 32.20% |
| 19 | Delaware | 58 | C+ | 0.58 | $491,463 | $76,379 | 0.50% | 0.30% | 29.60% |
| 20 | Kansas | 57 | C | 0.82 | $303,891 | $71,300 | 0.60% | 0.90% | 105.90% |
| 21 | Arizona | 57 | C | 0.5 | $499,982 | $74,483 | 4.00% | 2.30% | -2.70% |
| 22 | Missouri | 56 | C | 0.82 | $298,696 | $68,010 | 1.20% | 1.80% | 50.90% |
| 23 | Maryland | 55 | C | 0.81 | $416,558 | $97,364 | 1.20% | 1.80% | 50.90% |
| 24 | West Virginia | 55 | C | 0.91 | $240,954 | $58,432 | 0.30% | 0.50% | 62.80% |
| 25 | Tennessee | 53 | C | 0.55 | $433,987 | $66,631 | 3.10% | 2.10% | 15.30% |
| 26 | Idaho | 52 | C | 0.42 | $571,023 | $72,949 | 1.20% | 0.60% | -2.00% |
| 27 | Maine | 51 | C | 0.59 | $440,523 | $71,476 | 0.40% | 0.40% | 40.60% |
| 27 | Colorado | 51 | C | 0.55 | $599,104 | $90,555 | 2.20% | 1.80% | 5.30% |
| 29 | Utah | 51 | C | 0.49 | $602,230 | $88,438 | 1.60% | 1.00% | 9.30% |
| 30 | Illinois | 50 | C | 0.86 | $316,613 | $79,180 | 1.30% | 3.70% | 75.00% |
| 31 | Michigan | 50 | C | 0.86 | $284,762 | $69,042 | 1.50% | 3.00% | 96.40% |
| 32 | North Dakota | 49 | C | 0.73 | $359,034 | $73,489 | 0.20% | 0.20% | 45.40% |
| 33 | Pennsylvania | 48.3 | C | 0.82 | $306,740 | $74,466 | 1.60% | 3.80% | 89.90% |
| 34 | Nevada | 45.7 | C- | 0.49 | $492,789 | $71,942 | 1.40% | 1.00% | 19.20% |
| 35 | New Jersey | 45.4 | C- | 0.58 | $563,048 | $96,278 | 2.50% | 2.80% | 74.10% |
| 36 | Washington | 44.7 | C- | 0.51 | $636,445 | $93,297 | 2.60% | 2.30% | 18.30% |
| 37 | Mississippi | 44.2 | C- | 0.72 | $291,262 | $55,030 | 0.50% | 0.90% | 41.90% |
| 38 | New Mexico | 43.2 | C- | 0.57 | $392,571 | $61,656 | 0.50% | 0.60% | 2.40% |
| 39 | Vermont | 43 | C- | 0.56 | $493,716 | $79,794 | 0.20% | 0.20% | 51.50% |
| 40 | District of Columbia | 42.6 | C- | 0.67 | $610,723 | $98,916 | 0.10% | 0.20% | 0.20% |
| 41 | New Hampshire | 42.2 | C- | 0.57 | $572,784 | $94,929 | 0.30% | 0.40% | 38.70% |
| 42 | Wyoming | 41.2 | C- | 0.56 | $465,295 | $73,733 | 0.10% | 0.20% | 19.60% |
| 43 | Alaska | 40.4 | C- | 0.73 | $417,738 | $86,275 | 0.10% | 0.20% | 30.30% |
| 44 | Montana | 35.2 | D | 0.4 | $634,523 | $69,683 | 0.40% | 0.30% | 14.70% |
| 45 | Oregon | 29.8 | F | 0.46 | $563,896 | $78,022 | 1.00% | 1.30% | 2.00% |
| 46 | Connecticut | 28.3 | F | 0.64 | $517,849 | $89,717 | 0.40% | 1.10% | 68.20% |
| 47 | California | 19.5 | F | 0.43 | $756,185 | $92,605 | 6.80% | 11.70% | -7.10% |
| 48 | Hawaii | 15.8 | F | 0.45 | $822,065 | $91,385 | 0.20% | 0.40% | 26.20% |
| 49 | New York | 13.2 | F | 0.5 | $664,622 | $81,057 | 3.10% | 5.80% | 76.20% |
| 50 | Massachusetts | 12.6 | F | 0.48 | $781,758 | $96,584 | 1.00% | 2.10% | 42.80% |
| 51 | Rhode Island | 12.2 | F | 0.47 | $537,521 | $80,791 | 0.10% | 0.30% | 43.80% |
Advice for home buyers
Buying a home is a major commitment and house hunters have faced tough conditions with few options, high competition and low affordability.
But some states offer more welcoming environments, with more reasonable prices and easier pathways for construction. You should only buy what you can comfortably afford, shop your mortgage rate around, and see if you qualify for closing cost or down payment assistance.
If you're ready to get started, reach out to a local mortgage lender today.
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