Midwest and south lead housing affordability report; Idaho ranks 26th

The best affordability for prospective homeowners in the states facilitating the most construction for new homes can be found in the Midwest and South, based on findings of a recent report issued by Realtor.com.

The organization issued its 2026 housing report card for all 50 states and the District of Columbia. According to the data, 12 of the 13 highest ranked states in the Midwest and South achieved overall grades in the B- to A range.

Idaho’s grade of C kept the state dead-center nationally at No. 26 overall. Grades for each state were determined and split evenly measuring 50% for affordability, with the other half based on homebuilding activity.

The Gem State received a grade of 6.0 for affordability, and 99.6 for homebuilding components for an overall score of 52.8, with no change from last year’s report.

Indiana topped the report card’s list with a total score of 76.3. The Hoosier State earned an A grade based on both strong affordability and homebuilding activity. Last year Indiana ranked No. 4 on the scale.

“This year’s refresh reveals a familiar regional divide, but also some notable shifts beneath the surface, with a new state [Indiana] at the top of the class and a handful of states whose grades moved dramatically in either direction,” said Joel Berner, a Realtor.com senior economist.

Indiana’s median home price sits at just under $296,000, requiring a median household income of $71,000 for prospective buyers. This totals about 28%, slightly below the 30% benchmark for affordability.

Other states receiving a grade of A include Iowa and South Carolina, with Texas (A-) and North Carolina and Nebraska both receiving a B+ to round out the top listings.

Delaware and Utah represented the two states taking the biggest leap on the report. Each moved up 12 spots on the scale. Delaware moved to No. 7 from 19th last year, while Nebraska jumped from 29th to No. 17.

On the downside, six states ― New York, Massachusetts, Rhode Island, Hawaii, California and Connecticut ― received F grades.

Three states dropped eight spots. Alabama fell from No. 13 to No. 21; Maryland slipped from 23rd to 31st; and New Jersey dropped from No. 35 to No. 43.