Housing News

The 10 Best Metros for Affordable Homes and New Construction

Homebuyers searching for an affordable place to put down roots may want to consider how much new construction is happening there, too.

Building more homes can expand the housing stock and help communities keep up with demand. Ten of the nation’s 100 largest metros earned grades in the A range for combining affordability for local earners with healthy homebuilding activity, according to the first Realtor.com Metro Affordability & Homebuilding Report Cards.

Des Moines, Iowa, earned the highest score in the country. Raleigh, N.C., finished close behind.

“Homebuilding and affordability are inseparable, and if we want to improve affordability in a lasting way, we need to build more homes,” said Danielle Hale, chief economist at Realtor.com, in a statement. “The metros at the top of these rankings show that buyers benefit most when communities pair homes that are attainable for today’s local earners with enough new construction to support tomorrow’s demand.”

The rankings arrive as the United States faces a housing supply gap of more than 4 million homes, according to Realtor.com. The highest-ranked metros show how a growing housing stock can create better conditions for homebuyers.

Why homebuilding matters to affordability

Home prices tell only part of a metro’s affordability story. Local incomes determine how manageable a monthly mortgage payment may be, while construction can affect how many properties are available.

Des Moines earned the top ranking with a median listing price of $349,903. The estimated monthly mortgage payment required 27.5% of the typical household income, below the commonly used 30% affordability threshold.

The metro also permits 85% more homes than would be expected based on its population share and national construction activity.

Raleigh received the highest homebuilding score among the top 10. It permits more than twice as many homes as would be expected based on its population share.

Newly built homes in Raleigh were listed for 1.3% less than existing homes. In Des Moines, new construction carried a 23.4% premium.

How homebuyers can use the rankings

A high grade does not mean every property will fit every budget. Home prices, property taxes, homeowners insurance, homeowners association fees, and transportation expenses vary by neighborhood.

Homebuyers can begin by establishing a comfortable monthly housing budget and getting pre-approved for a mortgage.

Those considering new construction should request the complete price. A builder’s advertised price may exclude lot premiums, upgrades, appliances, landscaping, or homeowners association fees.

Builder incentives may include closing cost assistance, upgrades, or a mortgage rate buydown. A loan officer can explain how an incentive would affect the cash needed at closing and the monthly mortgage payment.

The top 10 metros for affordability and homebuilding

1. Des Moines, Iowa

Grade: A+
Median listing price: $349,903
Overall score: 83.4
Affordability score: 88.3
Homebuilding score: 78.4

Des Moines offered the strongest overall combination of affordability and residential construction.

2. Raleigh, N.C.

Grade: A+
Median listing price: $450,588
Overall score: 82.8
Affordability score: 72.4
Homebuilding score: 93.1

Raleigh’s exceptional homebuilding activity propelled it into second place.

3. Columbia, S.C.

Grade: A
Median listing price: $309,231
Overall score: 75.3
Affordability score: 71.8
Homebuilding score: 78.9

Columbia had the lowest median listing price in the top 10 and strong scores in both categories.

4. Houston

Grade: A
Median listing price: $363,106
Overall score: 74.8
Affordability score: 64.4
Homebuilding score: 85.2

Houston’s high homebuilding score helped it reach fourth place.

5. Indianapolis

Grade: A
Median listing price: $320,326
Overall score: 73.9
Affordability score: 89.1
Homebuilding score: 58.8

Indianapolis received the highest affordability score among the top 10.

6. Austin, Texas

Grade: A-
Median listing price: $501,200
Overall score: 72.5
Affordability score: 52.0
Homebuilding score: 92.9

Austin had the highest median listing price, but newly built homes were listed for 6% less than existing homes.

7. Jacksonville, Fla.

Grade: A-
Median listing price: $395,711
Overall score: 72.4
Affordability score: 64.0
Homebuilding score: 80.8

Jacksonville’s homebuilding activity helped it become one of two Florida metros in the top 10.

8. Oklahoma City

Grade: A-
Median listing price: $320,020
Overall score: 71.0
Affordability score: 78.1
Homebuilding score: 63.9

Oklahoma City paired one of the lowest median listing prices with a strong affordability score.

9. Palm Bay, Fla.

Grade: A-
Median listing price: $381,454
Overall score: 70.2
Affordability score: 60.4
Homebuilding score: 80.0

Newly built homes in Palm Bay were listed for 1% less than existing properties.

10. Columbus, Ohio

Grade: A-
Median listing price: $369,415
Overall score: 70.1
Affordability score: 72.9
Homebuilding score: 67.3

Columbus rounded out the ranking with solid results in both categories.

^{*Each metro was graded equally on affordability for local earners and homebuilding activity, including residential permitting and the price difference between newly built and existing homes. The report uses primarily 2025 data from Realtor.com, the U.S. Census Bureau, Claritas, and an affordability measure developed with the National Association of Realtors.}