Only One State Gets an A in Realtor.com’s Housing Report—Is Yours on the List?

Realtor.com® recently released its highly anticipated “Grading the States: Affordability & Homebuilding Report Cards,” shedding light on the stark differences in housing affordability and construction efforts across the United States. With over 4 million homes currently missing from the national housing supply, the issue of affordability is becoming an increasingly pressing concern. But amid this crisis, one state stands out for its outstanding performance—South Carolina, which earned the only “A” grade in the entire report.

The rankings are based on two major factors: affordability and the ability to meet future supply challenges through new construction. While affordability is a growing concern across the nation, some states are finding ways to balance the cost of housing with robust homebuilding efforts. South Carolina, for example, has found the right formula, earning top marks for proactively addressing housing demand. The state’s efforts to build new homes have been outpacing the rising demand, and its housing market remains relatively affordable compared to other parts of the country.

The findings highlight a growing divide between states that are successfully managing their housing markets and those that are struggling. Iowa and Texas, both of which earned “A-” grades, follow close behind South Carolina. Texas has become a leader in new construction, issuing a significant number of permits, while Iowa remains one of the most affordable places to buy a home. The balance of affordability and homebuilding activity is crucial for addressing the nation’s housing crisis, and these states have managed to strike that balance.

However, the report also reveals the challenges faced by many other states. In the West and Northeast, where housing costs are at their highest, the situation is far less optimistic. States like California, New York, and Massachusetts received poor marks for both affordability and construction progress. These regions have been hindered by high housing prices, limited new construction, and complex zoning laws that make it difficult to build enough homes to meet demand. Massachusetts, for instance, struggles with restrictive zoning regulations that limit the ability to increase housing supply.

The report emphasizes the urgent need for policy changes to address these disparities. According to Damian Eales, CEO of Realtor.com®, “The only real solution to housing affordability is to build more homes.” Realtor.com®’s “Let America Build” campaign underscores this message, calling for smarter zoning, streamlined permitting, and incentives to encourage the construction of new homes. The goal is clear: to make homeownership a reality for more Americans by increasing housing supply and making it more affordable.

While the top-ranking states have made progress, there is still a long way to go. The U.S. is facing a housing shortage that requires immediate attention and bold solutions. With only 18 states achieving the affordability threshold of a median-priced home being affordable to the median earner, and with much of the new construction concentrated in a handful of states, the national housing market remains in a state of flux.

Other states should take note of South Carolina’s top ranking, as it serves as a model for successfully tackling the twin challenges of affordability and homebuilding. While South Carolina has made significant strides, many states are still grappling with high prices and sluggish construction. The need for comprehensive policy action has never been more urgent. To close the housing gap and make homeownership attainable for more Americans, leaders at every level must act now.