Marcus Lemonis says housing prices are high primarily because of shortages, not just regulations. He highlights the necessary permits and security checks, questioning claims that removing red tape will significantly lower prices.
States with better accessibility for home buyers and fueling much of the new housing construction is concentrated in the Midwest and South, according to a new report.
Realtor.com has released the 2026 edition of its real estate report cards for all 50 states and the District of Columbia, showing that states across the Midwest and South are performing better than their peers from the Northeast and West.
While no states received an A+ grade, suggesting all have room for improvement, 12 of the 13 states with the highest grades were all located in the Midwest and South, receiving grades from B- to A. Part of the grade is based on the affordability ratio, and the other part is based on home construction work.
“This year's update reveals the usual regional differences, but also some notable changes at the bottom, with a new trend at the top of the class and a handful of states whose scores moved dramatically in either direction,” said Realtor.com chief economist Joel Berner.
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Realtor.com's state housing affordability report gave Indiana, Iowa and North Carolina A grades, while Texas received an A-. (Mark Felix/Bloomberg via Getty Images)
In Indiana topped the list with an overall score of 76.3 on a 100-point scale, earning an A based on strong purchasing and homebuilding activity that helped it climb three spots from last year's ratings.
The median home price in the Hoosier State was $295,810 and required about 28% of the household income of $71,469, which fell below the 30% affordability benchmark.
Other states to get A grades include Iowawith a median listing price of $282,886 and a household income of $75,991, and last year's leader South Carolina, with a median listing price of $363,896 and a median income of $67,758.
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Texas ranked fourth with an A-grade, given the Lone Star State's median price of $364,749 and median income of $76,585. North Carolina and Nebraska were the only states to receive B+ grades.
The biggest risers in the report compared to last year were Delaware and Utaheach jumped 12 spots. Delaware rose from 19th to 7th, while Utah saw its ranking rise from 29th to 17th.
The Realtor.com report is based on new construction activity and buyer affordability metrics. (Joshua Lott/Bloomberg via Getty Images)
Six states received F grades on their report cards, with New York last rank due to an average listing price of $668,173 and an average income of $82,657. The other five states that received F grades were all located in the Northeast or West, with Massachusetts, Rhode Island, Hawaii, California and Connecticut rounding out the bottom of the list in order of worst to best.
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Most of the states near the bottom of the rankings have seen their ranking remain stable or change little from last year, as they continue to face high prices, limited buildable land with restrictive zoning policies, and construction costs beyond what low-income buyers can afford.
The biggest declines were three states that all fell eight spots in the rankings – Alabama dropped from 13th to 21st, Maryland dropped from 23rd to 31st, and New Jersey dropped from 35 to 43.
New York dropped to last place in the 2026 rankings. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images)
Here's a list of Realtor.com report grades for each of the 50 states and the District of Columbia:
- Alabama: C
- Alaska: C-
- Arizona: C
- Arkansas: B
- California: F
- Colorado: C+
- Connecticut: F
- Delaware: B
- District of Columbia: D+
- Florida: B
- Georgia: B
- Hawaii: F
- Idaho: C
- Illinois: C
- Indiana: A
- Iowa: A
- Kansas: B
- Kentucky: C
- Louisiana: C
- Maine: C-
- Maryland: C
- Massachusetts: F
- Michigan: C
- Minnesota: C+
- Mississippi: C-
- Missouri: C
- Montana: D
- Nebraska: B+
- Nevada: C-
- New Hampshire: D+
- New Jersey: D
- New Mexico: C-
- New York: F
- North Carolina: B+
- North Dakota: C
- Ohio: C+
- Oklahoma: B
- Oregon: D-
- Pennsylvania: C
- Rhode Island: F
- In South Carolina: A
- South Dakota: B
- Tennessee: C
- Texas: A-
- Utah: C+
- Vermont: D+
- Virginia: C+
- Washington: C-
- West Virginia: C
- Wisconsin: C
- Wyoming: C-
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