The mix of housing affordability and new construction is seriously out of balance, according to a new data report from Realtor.com.
Only 18 states – primarily in the Midwest and South – have median homes that are affordable to their median earner based on the 30% of income rule. And only seven states – Texas, Florida, California, North Carolina, Georgia, Arizona, and South Carolina – accounted for more than half of all construction permits issued in 2024.
Realtor.com ranked South Carolina, Iowa, Texas, Indiana, and North Carolina for having the best balance between affordability and new construction.
At the other end of the spectrum, states in the Western and Northeastern coasts were burdened with high home prices, low affordability and limited new construction. Realtor.com observed that these states were generally more regulated and subject to stricter, more complex zoning requirements – most notably in Massachusetts, where 76% of the state’s 7 million acres are subject to zoning.
“Our state report card rankings reveal stark disparities in housing affordability and homebuilding efforts across the U.S.,” said Danielle Hale, chief economist at Realtor.com. “While some states are leading the way with strong homebuilding activity, others are grappling with high housing prices and sluggish construction. This divide underscores the urgent need for targeted policies and actions to address the nation’s 4 million-home supply gap.”
It is time to drop those prices. No excuses. You match the median household income of the ZIP Code that you’re selling in and that’s the way it works. Property is only worth what people are willing to pay.
My state made the list for having the best balance between affordability and new construction. Must be the reason it hasn’t slowed down very much.