How Does RI Rank for Homebuilding and Affordability?

How Does RI Rank for Homebuilding and Affordability?

 

The Midwest and South continue to outpace the rest of the nation in affordability and new construction, according to a new report.

 

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Falling far behind are almost all the coastal and Western states, according to the 2026 Realtor.com Housing Report Cards.

 

“Notably, 12 of the 13 states that earned the highest marks, ranging from B- to A, were all clustered in the Midwest and South. Delaware was the lone East Coast state to crack the top 10, capturing the seventh spot,” reports Realtor.

 

Small and Coastal is not always a losing strategy. Delaware, America's second-smallest state behind Rhode Island, claimed the title of "most improved," vaulting 12 spots into seventh place with a B grade and a score of 66.1, largely thanks to its healthy permitting activity, bolstered by a high median income just south of $90,000 that helps buyers absorb the elevated housing costs.

 

Bottom Dwellers

Realtor writes: 

The bottom of the 2026 list looks painfully familiar, populated by coastal states paralyzed by a toxic mix of high demand, strict zoning laws, scarce land, and sluggish permitting.

New York came dead last, earning an F grade and a dismal score of just 8.5 out of 100, thanks to its staggeringly poor affordability and anemic construction activity.

Fellow flunkers include Massachusetts (No. 50), Rhode Island (No. 49), Hawaii (No. 48), and California (No. 47).  

Rhode Island's failing grade comes after spending hundreds of millions of dollars to support building affordable housing and having passed dozens of reform bills to make it easier to build. But, little has changed.

 

How the States Are Scored:

All 50 states and DC are ranked on a 100-point scale based on two equally weighted core categories: housing affordability and homebuilding. 

 

Affordability, which accounts for half of the score, measures how accessible homeownership is for typical earners. It incorporates the REALTORS® Affordability Score and the share of a state's median household income required to afford its median-priced home to calculate the financial burden on buyers.

 

The remaining 50% of the score is determined by homebuilding activity, which assesses whether a state produces enough new homes to meet demand. It is based on the permit-to-population ratio and the new-construction premium—the price gap between purchasing a brand-new home versus an existing home.