1. Housing shortage in the U.S. exceeds 4 million homes. 2. South Carolina leads in homebuilding and affordability rankings. 3. Legislative changes needed to boost housing supply and affordability. 4. States in the South and Midwest outperform others in construction metrics. 5. High costs and slow construction persist in Northeast and West Coast.
The reported housing shortage and regional strengths favor NWS's real estate business interests, enhancing growth potential. Historically, businesses that pivot to fill market deficiencies often see stock appreciation, e.g., homebuilders after building booms.
The article highlights market trends in housing that directly affect NWS's operational environment and potential investment strategies.
Sustained policy changes and construction market shifts will take time, likely benefiting NWS over years. The effects of a thriving housing sector can influence NWS's financials positively in the long run.
AUSTIN, Texas, April 24, 2025 /PRNewswire/ -- With a nationwide housing shortage of over 4 million homes, affordability is becoming a growing concern for millions of Americans. Today, Realtor.com® released Grading the States: Affordability & Homebuilding Report Cards, offering a clear snapshot of which states are successfully addressing housing challenges and which are struggling to keep up. See table below for grades for all 50 states.
The rankings for each state are based on two major factors: housing affordability and the ability to meet future supply challenges through new construction. Affordability, one half of the score, includes the REALTORS® Affordability Score and the share of median income spent on a median-priced home. Homebuilding, the other half of the score, measured the permit-to-population ratio and the new construction premium, which is the cost difference between new and existing homes.
"The only real solution to housing affordability is to build more homes," said Damian Eales, CEO of Realtor.com®. "Some states are making progress, but too many others are stuck in a cycle of soaring housing costs and limited inventory. With this report and the Let America Build campaign, we're shining a spotlight on these gaps. We need bold solutions, and we urge federal, state, and local leaders to step up and take action now. It's time to break the cycle and start building now to make homeownership a reality for more Americans."
Realtor.com's Let America Build campaign underscores the need for urgent policy changes to increase the housing supply and make homeownership more accessible and affordable. The campaign calls on lawmakers, industry leaders, and local communities to support smarter zoning, streamlined permitting processes, and incentives for home construction.
Only 18 states—primarily in the Midwest and South—can claim that their median home is affordable to their median earner based on the 30% of income rule. Meanwhile, just seven states—Texas, Florida, California, North Carolina, Georgia, Arizona, and South Carolina—accounted for more than half of all construction permits issued in 2024. On the whole, the highest-ranking states are striking a balance between both affordability and robust homebuilding efforts, while those lower on the list struggle with high housing costs and sluggish construction progress.
"Our state report card rankings reveal stark disparities in housing affordability and homebuilding efforts across the U.S.," said Danielle Hale, chief economist, 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."
The South and Midwest, with ample available land and relatively low listing prices, are home to all of the top grades along our affordability and homebuilding criteria. In fact, the lowest grade earned by a state in the South and Midwest was in the C range. South Carolina earns the highest marks, securing an A grade for its proactive homebuilding efforts that are outpacing demand. Texas and Iowa followed closely behind with A- scores, though for very different reasons—Texas leads with impressive new construction, while Iowa stands out as one of the most affordable states to buy a home. B grades went exclusively to states in the South and Midwest, where construction activity and stronger affordability metrics are concentrated. Other high performers include Indiana, North Carolina, and Georgia, where strong affordability and homebuilding activity are making a notable impact.
On the coasts – and in states like Montana where there's an influx of people migrating from higher-cost regions – high home prices, low affordability and limited new construction continues to be a significant challenge. Grades below D were only given to states in the West and Northeast, where high housing costs and sluggish construction remain persistent challenges. Rhode Island ranks at the bottom of the list, followed by Massachusetts, New York, Hawaii and California, where high prices and sparse construction are making it increasingly difficult for residents to find affordable homes.
States on the Western and Northeastern coasts are generally more regulated and subject to stricter, more complex zoning requirements. Massachusetts, which received low scores in both affordability and homebuilding, serves as an example of how zoning can get in the way of delivering affordable housing. Of Massachusetts' roughly 7 million acres, 76% of them are subject to zoning, according to the National Zoning Atlas, a project dedicated to digitizing, demystifying, and democratizing U.S. zoning codes.
| Rank | State | Total Score | Grade | REALTORS® Affordability Score | Median Listing Price | Median Household Income | Share of 2024 Permits | Share of Population | New Construction Premium |
|---|---|---|---|---|---|---|---|---|---|
| 1 | South Carolina | 75.2 | A | 0.65 | $354,429 | $64,898 | 3.2% | 1.6% | -8.2% |
| 2 | Iowa | 71.6 | A- | 0.92 | $294,600 | $73,122 | 0.8% | 0.9% | 58.4% |
| 3 | Texas | 71.5 | A- | 0.61 | $370,663 | $73,203 | 15.3% | 9.2% | 7.5% |
| 4 | Indiana | 69.9 | B+ | 0.87 | $293,021 | $69,674 | 1.8% | 2.0% | 49.1% |
| 5 | North Carolina | 68.8 | B+ | 0.59 | $408,663 | $68,774 | 6.4% | 3.3% | 2.6% |
| 6 | South Dakota | 67 | B | 0.59 | $380,391 | $73,956 | 0.4% | 0.3% | 11.4% |
| 7 | Nebraska | 66.7 | B | 0.72 | $350,229 | $74,027 | 0.7% | 0.6% | 49.4% |
| 8 | Arkansas | 65.2 | B | 0.74 | $296,829 | $59,274 | 0.9% | 0.9% | 41.5% |
| 9 | Georgia | 64.7 | B | 0.64 | $392,678 | $72,877 | 4.6% | 3.3% | 15.2% |
| 10 | Minnesota | 62 | B- | 0.77 | $394,042 | $86,272 | 1.5% | 1.7% | 47.1% |
Grades are based on the following score ranges: A+ (77.5+), A (72.5-77.5), A- (70-72.5), B+ (67.5-70), B (62.5-67.5), B- (60-62.5), C+ (57.5-60), C (47.5-57.5), C- (40-47.5), D+ (37.5-40), D (32.5-37.5), D- (30-32.5), and F (0-30).
View the full report, interactive map and methodology at https://www.realtor.com/research/state-report-cards-2025/.
Realtor.com® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.
Media Contact: Sara Wiskerchen, sara.wiskerchen@realtor.com
SOURCE Realtor.com