Midwest City Leads Nation in Homebuilding and Affordability

A Midwest city, recognized for its welcoming atmosphere and referred to as 'Niceville USA,' is leading the nation in both homebuilding activity and housing affordability, according to the 2026 Realtor.com® Metro Report Cards. This finding emerges at a time when the United States is grappling with a significant housing deficit, estimated at over 4 million homes. This shortage is attributed to a confluence of factors including decades of underbuilding, limited availability of buildable land, regulatory obstacles, restrictive zoning laws, and escalating material costs. These persistent issues continue to drive up housing prices nationwide, pushing homeownership further out of reach for many aspiring buyers who are compelled to rent for extended periods.

The Realtor.com® analysis highlights that housing market conditions are highly localized, with certain metropolitan areas demonstrating exceptional performance in construction and affordability. The report identifies ten cities across the South and Midwest that are bucking the national trend by exhibiting robust homebuilding and maintaining relative affordability. These ten leading metros are Des Moines, IA; Raleigh, NC; Columbia, SC; Houston, TX; Indianapolis, IN; Austin, TX; Jacksonville, FL; Oklahoma City, OK; Palm Bay, FL; and Columbus, OH. The study builds upon earlier findings from the 2026 State Report Cards, which had previously identified Indiana as a top-performing state in the housing sector.

To compile these rankings, Realtor.com® evaluated the 100 largest metropolitan areas in the U.S. Each metro was assigned a score out of 100, with equal weight given to two key metrics: housing affordability and homebuilding. Housing affordability, which constitutes 50% of the overall score, likely considers factors such as median home prices relative to median incomes and mortgage payment burdens. The homebuilding metric, also accounting for 50% of the score, would assess the rate of new housing starts, permits issued, and overall inventory growth within the metro area. This dual-pronged approach aims to provide a comprehensive picture of which markets are not only creating new housing supply but also ensuring that this supply is accessible to a broad range of buyers.

Joel Berner, a senior economist at Realtor.com®, commented on the disparity in housing market conditions across the country. He stated that the challenges faced by prospective homebuyers are not uniform, with some regions excelling in home construction and offering more affordable options, while others struggle to increase housing inventory, leading to inaccessible markets. The 'Niceville USA' designation for the leading Midwest city underscores the positive impact of strong local housing development on both economic vitality and resident well-being, offering a model for other regions facing similar housing pressures.