United States Midwest, South Dominate Housing Scores

2026 Housing Scores by Region

Across the 2026 housing scorecard, the strongest state-level performance is concentrated in the South and Midwest.

These regional trends are pronounced. Southern states average 60.4 points and Midwestern states average 60.9, with both regions posting an average rank of No. 16. The highest-ranked Northeastern state is Pennsylvania at No. 32, underscoring the region’s weaker overall standing.

Every A and B grade belongs to a state in those two regions. Indiana leads all states at No. 1 with 76.3 points. This outperformance comes as the national market remains in a stalling market phase rather than a crash, with stronger regions better positioned to absorb high borrowing costs.

The distribution weakens sharply outside those areas. Western states average 41.8 points and rank No. 35 on average, while Northeastern states average 30.0 and rank No. 43.

All six F grades fall in the West or Northeast, and New York places final at 8.5. These results reflect combined affordability and homebuilding measures, showing where market conditions and policy impacts align most favorably nationally.

Why the South and Midwest Led

The regional gap shown in the 2026 scores was driven first by a clear affordability edge in the South and Midwest.

Lower home prices made the 30 percent housing-cost threshold easier for median earners to meet. Only 18 states had a median-priced home affordable under that standard, and they were concentrated in those regions.

A second advantage came from land availability and stronger room for expansion.

Ample land and lower listing prices reduced barriers for buyers and builders. That helped these states stay better positioned to address future supply needs through new construction than many coastal markets.

By contrast, disaster-related pressures such as rising insurance premiums in wildfire-exposed states have added to housing costs in some higher-risk markets.

Supply Momentum

Construction concentration also mattered.

Seven states produced more than half of 2024 new-home permits, with several Southern states among them. That pace helped the South and Midwest combine supply growth with affordability, unlike higher-cost regions.

Top States in the Midwest and South

In the 2026 housing scorecards, the highest-performing states were clustered almost entirely in the South and Midwest. Every A and B grade was awarded there, and 12 of the 13 top-ranked states were located in those two regions.

Indiana led overall at 76.3 with an A grade after rising from fourth place. Iowa also earned an A and stood out for its affordability.

Nebraska and South Dakota remained in the top 10.

State	Highlight
Indiana	No. 1 overall, A grade
South Carolina	Affordability and homebuilding leader

In the South, South Carolina combined proactive homebuilding with strong affordability. Texas also earned an A-.

North Carolina placed among the leaders as well. Infrastructure investment and workforce migration reinforced demand, while relatively low prices and active permitting helped support these states.

Why the West and Northeast Lagged

Rising costs and stubborn supply constraints left much of the West and Northeast trailing the Midwest and South in the 2026 housing scorecards.

In the Northeast, inventory constraints remained severe. Listings were still 54.1% below pre-pandemic levels, even with year-over-year gains.

The region also carried the weakest affordability score, 8.5, as price pressures persisted and list prices rose 3.8%.

The West showed a different but still weaker pattern. Its relative housing gap was smaller, yet market momentum softened.

Inventory grew 12.2% from a year earlier, but annual price growth slipped to 0.7%, and some markets posted declines.

Across both regions, results were uneven and shaped by local conditions. That geographic divergence limited broader improvement.

It also left both regions with slower growth, weaker affordability, and less competitive overall housing scores nationally.

What the 2026 Scores Mean for Buyers

For buyers, the clearest message from the 2026 scores is that affordability remains concentrated in the Midwest and South.

Realtor.com’s report cards show stronger conditions where home prices stay closer to local incomes and construction remains more supportive.

Indiana led all states and Washington, D.C., while every A and B affordability grade went to a Midwest or Southern state.

That matters because only 11 states kept median-priced homes within the 30%-of-income benchmark.

Higher scores also point to better buyer leverage and less pressure on monthly payments.

States with stronger supply growth and better building conditions generally offer less restrictive entry points.

Even so, inventory trends remain uneven, and some Midwest markets still sit below pre-pandemic norms.

For buyers, the best opportunities appear concentrated in lower-cost markets with expanding supply.

Assessment

The 2026 housing scores showed a sharp regional divide, with the Midwest and South outperforming the West and Northeast on affordability, inventory, and market stability.

States in the leading regions benefited from lower costs and more favorable supply conditions, while weaker affordability and tighter inventory dragged down scores elsewhere.

For buyers, the rankings underscored where market pressure remained most severe and where more attainable purchasing conditions were still available in 2026.

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