States with the most and least affordable homes for 2026

A new report has ranked all 50 states on housing affordability, revealing a new top state.

admin June 16, 2026 4 minutes read

As the United States continues to grapple with a housing shortage approaching 4 million homes, a new Realtor.com analysis finds that affordability challenges remain widespread, but some states are making significant progress in balancing home prices with new construction.

The 2026 State Report Cards for Housing Affordability and Homebuilding ranked all 50 states and Washington, D.C., on their ability to provide affordable homeownership opportunities while building enough housing to meet future demand.

The real estate company said the results revealed some change: a new state has claimed the top spot, several states saw significant improvements, and others saw their standing deteriorate sharply.

Indiana earns top honors

By the numbers:

Indiana ranked as the nation’s highest-performing state, climbing from fourth place last year to first with an overall score of 76.3, earning an A grade.

The state’s median home price of $295,810 required just 28.3% of the median household income, remaining below the widely accepted affordability threshold of 30%. Indiana also posted one of the nation’s strongest affordability scores while maintaining steady construction activity and a moderate premium on newly built homes.

Indiana was followed by Iowa, South Carolina, Texas and North Carolina.

Delaware and Utah see biggest gains

Dig deeper:

Several states also recorded major improvements in the 2026 rankings.

Delaware was the most improved state, jumping 12 spots to seventh place. Strong construction activity, along with the state’s strong median income of $87,667, helped propel the state into the top 10 despite relatively high home prices.

An aerial view of homes in the Phoenix suburbs on June 9, 2023 in Queen Creek, Arizona. (Credit: Mario Tama/Getty Images)

Utah also climbed 12 positions, rising from 29th to 17th. The state remains one of the least affordable markets in the country, but robust homebuilding activity improved its overall outlook.

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Colorado and Kansas also registered notable gains, but not all states moved in the right direction.

Alabama, Maryland, and New Jersey each fell eight places, the largest drops in the rankings. Louisiana and Wisconsin also experienced significant declines.

The stagnant bottom

The other side:

If the top of the class reshuffled, the bottom barely moved at all, the report revealed.

Connecticut (No. 46), California (No. 47), Hawaii (No. 48), Massachusetts (No. 50) and Oregon (No. 45) all held the same rankings as last year.

According to the report, these states face structural challenges such as high prices, constrained land, restrictive zoning and building costs that far outpace what middle-income buyers can afford.

New York dropped two spots to last place (No. 51) with a score of just 8.5. The state’s median listing price of $668,173 requires 55.2% of median income, and its permit-to-population ratio of 0.45, meaning building permits are less than half what its population share would suggest, reflects persistent underbuilding relative to demand.

The regional divide

In addition, the report found that the nation’s housing divide is becoming increasingly regional.

Every state receiving an A or B grade was located in either the South or Midwest. Southern and Midwestern states posted average scores roughly 50% higher than those in the Northeast and West.

Within the South, 13 of 16 states landed in the top half of the rankings. The only exceptions were Tennessee (No. 27), Maryland (No. 31) and Mississippi (No. 35). In the Midwest, ten of 12 Midwestern states ranked in the top 30.

The West and Northeast continued to dominate the bottom. All six F grades belong to states in these regions: Connecticut, California, Hawaii, Rhode Island, Massachusetts, and New York. The highest-ranked Western state was Utah at No. 17, and the highest-ranked Northeastern state was Pennsylvania at No. 32.