These states were the housing market MVPs, according to Realtor.com
Some states are faring better than others when it comes to housing affordability and homebuilding, according to a new report from Realtor.com.
The online real estate marketplace bestowed letter grades on America’s 50 states and Washington, D.C., in its "Grading the States: Affordability & Homebuilding Report Cards" report. Only three earned As.
Realtor.com looked at "housing affordability and the ability to meet future supply challenges through new construction" in determining how the states overall performed.
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"Our state report card rankings reveal stark disparities in housing affordability and homebuilding efforts across the U.S.," Realtor.com chief economist Danielle Hale said in a statement. "While some states are leading the way with strong homebuilding activity, others are grappling with high housing prices and sluggish construction."
The report comes as American homebuyers have contended with affordability issues for quite some time. The U.S. is also staring down a supply gap of 3.8 million homes, according to Realtor.com.
The following five states had the highest grades in the Realtor.com report:
In top-ranked South Carolina, homes had median asking prices of $354,429, with households earning a median income of $64,989. The state’s "proactive homebuilding efforts" helped it achieve the sole "A" grade for affordability and homebuilding, the report said.
Iowa boasted the highest Realtors Affordability Score at 0.92 out of 2. It saw a median price of $294,600, while its new construction premium came in at 58.4%, according to Realtor.com.
The report attributed the Lone Star State’s A- (one of just two on the ranking) to its "impressive new construction." It was home to a permit-to-population ratio of 1.67 and was responsible for 15.3% of new construction permits in 2024, Realtor.com found.
Indiana notched an overall score of 69.9 out of 100 for affordability and homebuilding, leading to it ranking No. 3 with a B+.
The median asking price in North Carolina clocked in at $408,663, according to the report. It had "strong affordability and homebuilding activity," Realtor.com said.
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The largest share of states fell within the C-range for affordability and homebuilding, with six landing a C+, 14 getting a C and nine earning a C-, the report showed. Washington, D.C. also received a C-.
Southern and Midwestern states made up the B range.
Montana held the only "D" grade.
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Seven states – Oregon, Connecticut, California, Hawaii, New York, Massachusetts and Rhode Island – got an "F" for affordability and homebuilding in Realtor.com’s report.
According to an April 3 report from Realtor.com, homes across the country listed for a median price of $424,900 in March. That was flat year over year, but still 38.9% higher than March 2019.
A separate survey released in late January by NerdWallet found about 15% of Americans intend to make a home purchase this year.