- South Carolina, Iowa, and Texas lead the Realtor.com 2025 housing report with top grades for affordability and homebuilding.
- Only 18 U.S. states offer homes affordable to median earners amid a shortage of over 4 million homes.
- Texas, Florida, California, and other states account for over 50% of 2024 construction permits.
The latest Realtor.com® 'Grading the States: Affordability & Homebuilding Report Cards' highlights a nationwide housing shortage exceeding 4 million homes, underscoring significant regional disparities in affordability and new construction efforts. With affordability and homebuilding as key metrics, the South and Midwest states have emerged as leaders in addressing these challenges.
South Carolina received the highest marks, grading an A, thanks to its robust homebuilding activities that effectively meet demand. Close behind are Iowa and Texas, both with an A- grade. Texas distinguishes itself with impressive new construction efforts, while Iowa remains a top contender for affordability. Indiana and North Carolina received a B+ grade due to their balanced approach between affordability and construction.
The report also reveals that only 18 states, predominantly in the South and Midwest, offer median homes affordable to their median earners under the 30% income rule. Moreover, Texas, Florida, California, North Carolina, Georgia, Arizona, and South Carolina were responsible for over half of all construction permits issued in 2024.
Conversely, the Northeast and West Coast regions, combined with states like Montana, struggle with high home prices, low affordability, and inadequate new construction. The stringent zoning laws and high costs have placed states like Rhode Island, Massachusetts, New York, Hawaii, and California at the bottom of the list, emphasizing an urgent need for policy reform in these areas.
Realtor.com's Let America Build campaign highlights the necessity for immediate policy changes to boost housing supply and enhance affordability. The initiative calls on legislators, industry leaders, and local communities to back smarter zoning, streamlined permitting, and construction incentives to mitigate the housing crisis.
