Full Breakdown
Realtor.com Ranks U.S. Metro Housing Affordability
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Core Findings
Realtor.com released a nationwide ranking of the 100 largest metropolitan areas, grading each on current housing affordability and the pace of new home construction. The assessment places Des Moines, Iowa, at the top with an A+ grade, followed by Raleigh, North Carolina; Columbia, South Carolina; Houston, Texas; and Indianapolis, Indiana. At the opposite end, Los Angeles receives an F, with Providence, Rhode Island; New York City; Honolulu; and Boston completing the bottom tier. The report highlights that metros with faster permitting, less restrictive zoning, and abundant land tend to score higher, while coastal markets with tighter regulations rank lower.
Background & Context
The rankings emerge amid a national housing shortage estimated at more than 4 million homes, a gap attributed to years of underbuilding. Builders face rising material and labor costs, as well as regulatory pressures, while prospective buyers contend with high mortgage rates that suppress demand.
Data & Statistics
- Top-ranked metros (A+ to A-): Des Moines (A+), Raleigh (A), Columbia (A-), Houston (A-), Indianapolis (A-).
- Lowest-ranked metros (F to D-): Los Angeles (F), Providence (D-), New York City (D-), Honolulu (D-), Boston (D-).
- Housing shortage: > 4 million units nationwide.
Official Statements & Responses
Senior economist Joel Berner explained that the rankings aim to capture both the present state of each market and its longer-term trajectory. He noted that builders are “squeezed on both sides” by higher input costs and weaker buyer activity. Berner urged local officials to prioritize revisiting zoning ordinances, arguing that streamlined permitting and reduced land-use restrictions enable faster, denser development to meet demand.
Verbatim Quotes
- “It's really a balanced look at the present and the future for how things are affordable now and how they might be affordable in years to come,” — Joel Berner, senior economist at Realtor
- “Builders are getting squeezed on both sides,” — Joel Berner, senior economist at Realtor
- “And these are places with strong job markets that are growing really fast, and the cities are allowing builders to absorb that increasing demand for homes in these growing cities by building a lot of them.” — Many
- “Those places really have some advantages that the coastal cities don't,” — Joel Berner, senior economist at Realtor
- “I think the first thing they should do is look at their local zoning ordinances," Berner said.” — Joel Berner, senior economist at Realtor