Midwest and Southern states have housing report cards: See how yours benefited

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Midwest and Southern states have housing report cards: See how yours benefited

States with better accessibility for home buyers and fueling much of the new housing construction is concentrated in the Midwest and South, according to a new report.

Realtor.com has released the 2026 edition of its real estate report cards for all 50 states and the District of Columbia, showing that states across the Midwest and South are performing better than their peers from the Northeast and West.

While no states received an A+ grade, suggesting all have room for improvement, 12 of the 13 states with the highest grades were all located in the Midwest and South, receiving grades from B- to A. Part of the grade is based on the affordability ratio, and the other part is based on home construction work.

“This year’s update shows the usual regional differences, but also some notable changes at the bottom, with a new trend at the top of the class and a handful of states whose scores moved dramatically in either direction,” said Realtor.com chief economist Joel Berner.

In Indiana topped the list with an overall score of 76.3 on a 100-point scale, earning an A based on strong purchasing and homebuilding activity that helped it climb three spots from last year’s ratings.

The median home price in the Hoosier State was $295,810 and required about 28% of the household income of $71,469, which fell below the 30% affordability benchmark.

Other states to get A grades include Iowawith a median listing price of $282,886 and a household income of $75,991, and last year’s leader South Carolina, with a median listing price of $363,896 and a median income of $67,758.

Texas ranked fourth in 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 states to receive B+ grades.

The biggest increases in the report compared to last year were Delaware and Utah, each jumping 12 places. 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 because of an average listing price of $668,173 and an average 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 worst to best.

Most of the states near the bottom of the rankings have seen their ranking remain stable or change little from last year, as they continue to face high prices, limited buildable land with restrictive zoning policies, and construction costs beyond what low-income buyers can afford.

The biggest declines were three states that all fell eight spots in the rankings – Alabama dropped from 13th to 21st, Maryland dropped from 23rd to 31st, and New Jersey dropped from 35 to 43.

Here is a list of the Realtor.com report grades for each of the 50 states and the District of Columbia: