Realtor.com Ranks Best and Worst States for Homebuyers in 2026

Realtor.com has released its annual housing report, grading all 50 US states and Washington D.C. on home affordability and new home construction. The report found that states in the Midwest and South generally performed best, while those in the West and New England struggled.

Joel Berner, a senior economist at Realtor.com, stated that new home construction is a vital indicator for a healthy housing ecosystem, as it directly impacts future affordability. He explained that without sufficient new homes being built, affordability suffers due to constrained supply.

States earning A or B grades were predominantly located in the Midwest and South, regions characterized by lower living costs and more affordable housing options. Indiana secured the top position, largely due to its high median household income relative to home prices, offering buyers more accessible options. However, Berner noted that Indiana's "unremarkable" new-home construction might pose future affordability challenges.

Conversely, states receiving C to F grades were mainly in the West and New England. Berner attributed this to slower and more expensive building processes in these regions, often caused by restrictive zoning laws, permitting delays, and stringent building codes. These factors make it difficult for them to compete with the more favorable land and building conditions found in the central United States.

Oklahoma received a B grade, with a median listing price of $299,000, a median household income of $65,000, and a population of 4,123,288. Arkansas also earned a B grade, featuring a median listing price of $300,000, a median household income of $61,000, and a population of 3,114,791.