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The 10 best and 10 worst states to buy a home in 2026

Realtor.com ranked the best and worst states to buy a home, and the Midwest and Southern states came out on top.

7 mins read

Realtor.com ranked all 50 states and DC based on housing affordability and homebuilding.
Each state received grades from A to F, with A being the best.
The best US states for affordability and new-home construction are largely in the Midwest and South.

It's a tough real estate market no matter where you live, but some parts of the US are faring better than others.

Realtor.com released its annual housing report card on Monday, grading all 50 states and Washington, DC, from A to F based on how affordable homes are there and how much new housing is being built.

Joel Berner, a senior economist at Realtor.com, told Business Insider that homebuilding is an important indicator of a housing ecosystem because it signals how affordable homes will be over time.

"Without new homes being built, affordability will suffer under constrained home supply," he said.

Once again, the best-performing states — those earning either an A or a B grade — were concentrated mostly in the Midwest and South, regions known for their lower cost of living and abundance of relatively affordable homes.

Indiana ranked No. 1, largely because incomes there are relatively high compared with home prices, giving buyers more affordable options. But Berner said the state's "unremarkable" new-home construction could point to affordability problems in the future.

At the other end of the ranking, states that received grades between C and F were largely concentrated in the West and New England. Berner said building in these states is often slower and more expensive because of zoning rules, permitting delays, and building codes. As a result, they struggle to compete with states in the middle of the country, where land is cheaper, and building is generally easier.

Below are the 10 best and worst states in the US for affordability and homebuilding, according to Realtor.com.

Median listing prices and median household incomes for these states are from Realtor.com. Population data for each state is from the US Census Bureau.

The 10 best states for homebuilding and affordability

An overview of a suburban neighborhood.

10. Oklahoma

Aerial drone photo Oklahoma State Capitol Building

Grade: B
Median listing price: $299,000
Median Household income: $65,000
Population: 4,123,288

9. Arkansas

Little Rock, Arkansas - September 1, 2018: Skyline afternoon in downtown Little Rock

Grade: B
Median listing price: $300,000
Median Household income: $61,000
Population: 3,114,791

8. South Dakota

Aerial view of Rapid City, South Dakota. Rapid City is the county seat of Pennington County in South Dakota and the second most populous city in the state.

Grade: B
Median listing price: $379,000
Median Household income: $77,000
Population: 935,094

7. Delaware

DWilmington Delaware

Grade: B
Median listing price: $486,000
Median Household income: $88,000
Population: 1,059,952

6. Nebraska

Omaha, Nebraska, USA downtown cityscape at dusk.

Grade: B+
Median listing price: $346,000
Median Household income: $77,000
Population: 2,018,006

5. North Carolina

Asheville, North Carolina, USA downtown skyline at dusk

Grade: B+
Median listing price: $299,000
Median Household income: $65,000
Population: 11,197,968

4. Texas

Dallas Texas downtown urban skyline and freeway

Grade: A-
Median listing price: $300,000
Median Household income: $61,000
Population: 31,709,821

3. South Carolina

Aerial view of Charleston, South Carolina.

Grade: A
Median listing price: $379,000
Median Household income: $77,000
Population: 5,570,274

2. Iowa

Iowa State Capitol and Des Moines skyline. The Iowa State Capitol houses the Senate, House of Representatives, the Offices of the Governor, Attorney General, Auditor, Treasurer, and Secretary of State

Grade: A
Median listing price: $486,000
Median Household income: $88,000
Population: 3,238,387

1. Indiana

Indianapolis, Indiana, USA downtown cityscape on the White River at dusk.

Grade: A
Median listing price: $346,000
Median Household income: $77,000
Population: 6,973,333

The 10 worst states for homebuilding and affordability

An aerial view of a neighborhood where homes sit next to water.

10. New Hampshire

Aerial view of Concord and the New Hampshire State House.

Grade: D+

Median listing price: $586,123

Median Household income: $96,809

Population: 1,409,032

9. New Jersey

Newark, New Jersey, skyline reflection on the banks of the Passaic River at night.

Grade: D

Median listing price: $556,344

Median Household income: $99,357

Population: 9,500,851

8. Montana

Bozeman, Montana, aerial view.

Grade: D

Median listing price: $628,387

Median Household income: $72,066

Population: 1,137,233

7. Oregon

Aerial view of Portland, Oregon.

Grade: D-

Median listing price: $564,005

Median Household income: $80,356

Population: 4,272,371

6. Connecticut

Hartford, Connecticut, skyline.

Grade: F

Median listing price: $518,892

Median Household income: $95,392

Population: 3,675,069

5. California

Aerial shot of a tidal inlet surrounded by commercial office parks and suburban housing in Redwood City, California.

Grade: F

Median listing price: $742,305

Median Household income: $95,065

Population: 39,431,263

4. Hawaii

Cityscape of Waikiki, Hawaii.

Grade: F

Median listing price: $767,360

Median Household income: $94,556

Population: 1,446,146

3. Rhode Island

The Providence, Rhode Island, skyline.

Grade: F

Median listing price: $563,235

Median Household income: $85,698

Population: 1,112,308

2. Massachusetts

A view of Boston Harbor and the city skyline.

Grade: F

Median listing price: $763,660

Median Household income: $98,170

Population: 7,136,171

1. New York

The downtown Manhattan skyline at Dusk.

Grade: F

Median listing price: $668,173

Median Household income: $82,657

Population: 19,867,248

The post The 10 best and 10 worst states to buy a home in 2026 appeared first on Business Insider

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