2026 Realtor.com State Report Cards: Indiana Ranked No. 1 for Homebuilding and Affordability

Indiana secured the top position in the 2026 Realtor.com® Housing Report Cards, achieving an A grade for its performance in homebuilding and affordability. This marks a significant climb from its previous ranking, dethroning South Carolina, which fell to third place. The report, which grades all 50 states and the District of Columbia on a 100-point scale, found that 12 out of the 13 states receiving the highest marks (ranging from B- to A) are located in the Midwest and South, highlighting a continued regional divide in housing market strength. Delaware was the only East Coast state to break into the top 10, ranking seventh. Conversely, six coastal states received an F grade, with New York listed at the very bottom. The grading system equally weights housing affordability and homebuilding activity. Affordability is assessed by the accessibility of homeownership for typical earners, considering the REALTORS® Affordability Score and the percentage of median household income needed to purchase a median-priced home. Homebuilding activity is measured by the permit-to-population ratio and the price difference between new and existing homes, indicating whether a state is constructing sufficient new homes to meet demand. Joel Berner, Realtor.com senior economist, noted that while the regional divide persists, there were notable shifts and a new state leading the rankings this year.