Home buyers don’t usually spend a lot of time thinking about housing starts and building permits, but the rate of new home construction is a big part of what makes an area affordable or unaffordable. Generally, where there are more available homes, there will be more affordable homes. Where homes are scarce, there will be higher prices. That can be clearly seen on the second annual Affordability & Home Building Report Card from the National Association of Realtors’ consumer website. The report card ranks each state based on how well they’re doing on both fronts and the results were clear. Joel Berner, the website’s senior economist, says there’s a growing divide in the country. “The regional divide we saw last year is a continuing structural feature of the American housing market,” Berner said. “The states at the top of our rankings benefit from available land, lower regulatory barriers, and a building culture that prioritizes volume and accessibility.” That means, the South and Midwest were home to the highest graded states, while the West and Northeast held the lowest grades. Specifically, Indiana was the highest graded state, with a median price under $300,000, while New York scored worst due to less building and higher prices. (source)
