These states received top marks on their housing affordability report cards

Affordability measures include a score based on the percentage of listings affordable to various income brackets, as well as the share of income spent on a median-priced home. Homebuilding was assessed using construction permit volumes relative to population and price differences between new and existing homes.

South and Midwest states lead the pack

South Carolina received the highest grade in the report, an A, for proactive construction efforts that are exceeding current housing demand.

Texas and Iowa each had A- scores. Texas was recognized for its high volume of new construction, while Iowa stood out for maintaining relatively affordable home prices.

Other strong performers include Indiana, North Carolina and Georgia — states that balance affordability with robust homebuilding efforts.

In total, 18 states met Realtor.com’s affordability threshold, defined as housing costs that do not exceed 30% of a median earner’s income. These states are primarily located in the South and Midwest, where land availability and more flexible zoning policies allow for higher construction output.

“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, others are falling behind — underscoring the need for targeted action to address the national housing shortage.”

West and Northeast states need improvement

At the opposite end of the spectrum, West Coast and Northeast states received the lowest marks.

Rhode Island ranked at the bottom of the list, followed by Massachusetts, New York, Hawaii and California. These states face a combination of high home prices and limited new housing development.

The report points to restrictive zoning as a key barrier.

Massachusetts, which earned low marks in both affordability and homebuilding, has approximately 76% of its 7 million acres subject to zoning regulations, according to the National Zoning Atlas.

These complex and often outdated codes are seen as a significant constraint on new housing supply, the report explained. And Realtor.com CEO Damian Eales said more housing construction is the only viable long-term solution to affordability issues.

“Some states are making progress, but too many others are stuck in a cycle of soaring housing costs and limited inventory,” Eales said. “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.”

High permit volume, push for reform

The report noted that only seven states — Texas, Florida, California, North Carolina, Georgia, Arizona, and South Carolina — accounted for more than half of all residential construction permits issued in 2024.

But high levels of permit issuances do not necessarily guarantee affordability. In high-demand states like California and Florida, new builds often come with premium pricing, keeping homeownership out of reach for many.

The findings are part of Realtor.com’s broader Let America Build campaign, which advocates for zoning reform, streamlined permitting and construction incentives to ease housing shortages.

The campaign calls on government officials and local leaders to modernize housing policy and remove barriers to new development.

“There is no single fix,” Hale said. “But building smarter, faster, and more affordably is the only path forward.”