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The 10 best and 10 worst states to buy a home in 2026
Realtor.com has ranked all 50 US states and Washington, D.C., based on affordability and new home construction.Maskot/Getty ImagesRealtor.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 affordabilityA suburban neighborhood.Michael Godek/Getty Images10. Oklahomafelixmizioznikov/Getty ImagesGrade: BMedian listing price: $299,000Median Household income: $65,000Population: 4,123,2889. ArkansasEduardo Medrano/ShutterstockGrade: BMedian listing price: $300,000Median Household income: $61,000Population: 3,114,7918. South DakotaUltima_Gaina/Getty ImagesGrade: BMedian listing price: $379,000Median Household income: $77,000Population: 935,0947. DelawareReal Window Creative/ShutterstockGrade: BMedian listing price: $486,000Median Household income: $88,000Population: 1,059,9526. NebraskaSean Pavone/Getty ImagesGrade: B+Median listing price: $346,000Median Household income: $77,000Population: iki,018,0065. North CarolinaSean Pavone/Getty Images/iStockphotoGrade: B+Median listing price: $299,000Median Household income: $65,000Population: 11,197,9684. TexasCavan-Images/ShutterstockGrade: A-Median listing price: $300,000Median Household income: $61,000Population: 31,709,8213. South CarolinaCharleston, South Carolina.Grindstone Media Group/ShutterstockGrade: AMedian listing price: $379,000Median Household income: $77,000Population: beş,570,2742. IowaUltima_Gaina/Getty ImagesGrade: AMedian listing price: $486,000Median Household income: $88,000Population: 3,238,3871. IndianaSean Pavone/ShutterstockGrade: AMedian listing price: $346,000Median Household income: $77,000Population: 6,973,333The 10 worst states for homebuilding and affordabilityAn American neighborhoodOleg Breslavtsev/Getty Images10. New HampshireConcord, New Hampshire.Ultima_Gaina/Getty ImagesGrade: D+Median listing price: $586,123Median Household income: $96,809Population: 1,409,0329. New JerseyNew Jersey.DenisTangneyJr/Getty ImagesGrade: DMedian listing price: $556,344Median Household income: $99,357Population: 9,500,8518. MontanaMontana.jimkruger/Getty ImagesGrade: DMedian listing price: $628,387Median Household income: $72,066Population: 1,137,2337. OregonOregon.BruceBlock/Getty ImagesGrade: D-Median listing price: $564,005Median Household income: $80,356Population: 4,272,3716. ConnecticutHartford, Connecticut.Michael Warren/Getty ImagesGrade: FMedian listing price: $518,892Median Household income: $95,392Population: 3,675,0695. CaliforniaRedwood City, California.halbergman/Getty ImagesGrade: FMedian listing price: $742,305Median Household income: $95,065Population: 39,431,2634. HawaiiWaikiki, Hawaii.Vadym Terelyuk/Getty ImagesGrade: FMedian listing price: $767,360Median Household income: $94,556Population: 1,446,1463. Rhode IslandProvidence, Rhode Island.DenisTangneyJr/Getty ImagesGrade: FMedian listing price: $563,235Median Household income: $85,698Population: 1,112,3082. MassachusettsBoston.xbrchx/Getty ImagesGrade: FMedian listing price: $763,660Median Household income: $98,170Population: 7,136,1711. New YorkAerialPerspective Images/Getty ImagesGrade: FMedian listing price: $668,173Median Household income: $82,657Population: 19,867,248Read the original article on Business Insider

