All hail, Indiana.
The Hoosier State just claimed the top spot in Realtor.com’s 2026 Housing Report Cards.
At first glance, the reasons seem straightforward. A median-priced home costs $295,810, requiring about 28% of the state’s median household income—comfortably below the traditional 30% affordability benchmark.
But affordability alone isn’t what put Indiana at the top.
The state has also continued building.
Indiana’s permit-to-population ratio sits at 1.02, meaning it is issuing housing permits at roughly the same rate as its share of the national population. In other words, it is doing a better job than many states at keeping supply moving.
That’s the pattern that emerges throughout the rankings.
Indiana, Iowa, South Carolina, Texas, and North Carolina all scored near the top. While each market has its own dynamics, they share a common characteristic: they continue producing housing at a pace that helps keep affordability within reach.
The contrast with many coastal markets is striking. States near the bottom of the rankings continue to struggle with a familiar combination of restrictive regulations, limited land availability, high costs, and sluggish permitting activity.
Perhaps the most interesting takeaway comes from Indiana builders themselves. They point to efforts to reduce regulatory barriers, invest in infrastructure, and expand housing production as key advantages.
For builders, the lesson may be simple: Housing affordability and homebuilding are not competing goals.
In many cases, they’re the same goal.
The markets creating the most attainable housing tend to be the markets creating the most housing.
The full report offers an interesting look at which states are making progress—and which continue to fall behind.
