Iowa Housing Report: State Earns 'A' Grade for Affordability
Iowa earned an A grade in the 2026 Realtor.com housing report card, ranking among the top states in the nation for home affordability and new construction. The report highlights a stark regional divide, with Midwest and Southern states outperforming heavily regulated coastal states that received failing grades.
How Does Iowa Compare to the Rest of the Country?
Realtor.com released its 2026 housing report cards for all 50 states and the District of Columbia. The study grades states based on two factors: housing affordability and homebuilding activity. Iowa stood out as one of the top performers in the nation.
Iowa secured an A grade thanks to a median listing price of $282,886 and a median household income of $75,991. This balance makes homeownership achievable for working families, keeping communities strong and attracting new residents who want to escape the high costs of living in coastal states.
Indiana topped the national list with a total score of 76.3 out of 100. The Hoosier State features a median home price of $295,810 and requires about 28% of the median household income, staying below the standard 30% affordability benchmark. Other states earning A grades include South Carolina, last year's leader, and Texas. North Carolina and Nebraska earned B+ grades. Of the 13 highest scoring states, 12 are located in the Midwest or South.
Why Did Northeast and West Coast States Fail?
While Iowa and its neighbors celebrate strong housing markets, six states received failing grades. New York ranked dead last. The state's median listing price sits at a staggering $668,173, while the median income is $82,657. Massachusetts, Rhode Island, Hawaii, California, and Connecticut joined New York at the bottom of the list.
The report points to clear reasons for these failures. States at the bottom struggle with high prices, limited land for building, restrictive zoning policies, and building costs that outpace what middle class buyers can afford. These progressive states often prioritize heavy regulation over property rights and free market development. As a result, working families are priced out of the American dream.