The housing market’s affordability issues are mainly a supply problem. Fewer homes for sale have pushed prices higher for the ones that are available. It’s simple math and the solution is more homes. The National Association of Realtors’ consumer website recently took that equation and applied it to each of the 50 states. The resulting Housing Report Card is a state-by-state breakdown of which states are most affordable and best situated to build enough homes to meet future demand. The grades show the South and Midwest leading the pack. The South because it leads the country in home building and the Midwest due to its affordability. Not surprisingly, the Northeast and West earn lower grades, as they are home to higher prices and more significant construction challenges. Danielle Hale, the website’s chief economist, says conditions vary from state-to-state. “Our state report card rankings reveal stark disparities in housing affordability and home building efforts across the U.S.,” Hale said. “While some states are leading the way with strong home building activity, others are grappling with high housing prices and sluggish construction.” (source)
