These Are the Best and Worst States to Buy a Home Right Now

Buying a home is more attainable in some states than others, and the gap is only growing. Realtor.com’s 2026 Housing Report Card graded all 50 states and Washington, D.C., on affordability and new home construction, and the results show a clear divide. Midwestern and Southern states dominated the top rankings, while coastal and Western states struggled. Indiana claimed the top spot this year, while New York fell to the very bottom of the list, a shift from its previous ranking.

How Realtor.com Scored Every State

The report card ranks states on a 100-point scale split evenly between two categories. Affordability accounts for half the score, measuring how much of a typical household’s income would go toward a median-priced home, incorporating the REALTORS® Affordability Score. The other half tracks homebuilding activity, based on each state’s permit-to-population ratio and the price premium tied to newly built homes compared with existing ones.

Indiana Tops the List With a Strong Score

Indiana earned an A grade and the No. 1 ranking this year, posting a score of 76.3 out of 100. The state’s median listing price sits at $346,000 against a median household income of $77,000, giving buyers more room to work with. Still, Realtor.com senior economist Joel Berner pointed to Indiana’s modest pace of new construction as a possible warning sign for affordability down the road.

Iowa and South Carolina Round Out the Top Three

Iowa and South Carolina both earned A grades, joining Indiana near the top of the rankings. Texas followed close behind with an A-, while North Carolina and Nebraska each landed a B+. These states posted median listing prices ranging from $299,000 to $486,000 against household incomes of $61,000 to $88,000, a spread that has helped keep homeownership within reach for more buyers.

Why the Midwest and South Keep Winning

Berner said this pattern holds steady year after year, largely because land in the middle of the country tends to be cheaper and easier to build on. Oklahoma, Arkansas, South Dakota, and Delaware all earned B grades for similar reasons. Lower costs of living across these regions give homebuilders more flexibility, with Oklahoma’s median listing price sitting at just $299,000 compared with the national figures seen on the coasts.

New York Finishes at the Bottom of the Ranking

The report card shows that New York posted the lowest score in the country at 8.5 out of 100, sliding from 49th to 51st since last year. A typical median income earner there would need to spend more than 55 percent of their earnings to afford a home priced at $668,173. The state’s permit-to-population ratio sits at just 0.45, well below what its population size would suggest.

Builders Point to Years of Delays

Michael Fazio, executive director of the New York State Builders Association, said the approval process is one of the state’s biggest obstacles. “The development approval, environmental review, permitting, and inspection processes can often take years before a project is completed and families can move into a home,” he told Realtor.com. Those delays, he added, ultimately add costs that get passed on to buyers and renters.

Massachusetts Stays Stuck Near the Bottom

Massachusetts held its No. 50 ranking for a second straight year, weighed down by strict energy codes and slow municipal approval processes, according to Michael Travaline of the Home Builders and Remodelers Association of Massachusetts. State lawmakers have since passed the MBTA Communities Act, projected to add more than 40,000 housing units, and the Affordable Homes Act, which aims to unlock 220,000 more, though a November ballot measure on rent control could complicate progress.

California, Hawaii, Rhode Island, and Connecticut Also Earn Failing Grades

Realtor.com’s rankings also show that California, Hawaii, Rhode Island, and Connecticut all received F grades alongside New York and Massachusetts. Hawaii posted the highest median listing price at $767,360, followed closely by California at $742,305. Oregon, Montana, New Jersey, and New Hampshire fared only slightly better, earning grades from D- to D+, with Montana posting the highest median listing price in that group at $628,387.

Change Could Take Years for Struggling States

Berner said the states near the bottom of the ranking share common challenges, including restrictive zoning, limited buildable land, and construction costs that outpace what middle-income buyers can afford. “A single year of data is unlikely to alter any of these in a meaningful way,” he said, adding that meaningful improvement would likely require several years of steady, consistent progress.