Des Moines Leads US Housing Affordability Rankings

Des Moines, Iowa, ranked first for housing affordability with an A+ grade. Los Angeles placed last with an F. The report covers the 100 largest US metro areas. It measures current prices and future construction trends.

Raleigh, North Carolina, and Columbia, South Carolina, followed Des Moines. Houston and Indianapolis completed the top five. New York City, Boston, and Honolulu landed in the bottom five. The data comes from a recent Realtor.com analysis.

Midwest Cities Outperform Coastal Hubs

Midwest and Sun Belt metros dominated the upper rankings. Coastal cities struggled to compete. The US faces a shortage of over four million homes. This deficit stems from years of underbuilding. High mortgage rates have further depressed buyer activity.

Builders face rising costs for materials and labor. Regulatory burdens add to their financial strain. Demand remains weak due to limited buyer affordability. These factors squeeze profit margins across the industry.

Zoning Rules Drive Construction Speed

Top-ranked cities facilitate faster building processes. Local governments in these areas avoid restrictive zoning laws. Permitting processes move quickly. This allows builders to absorb growing housing demand. Strong job markets in these regions increase the need for homes.

Land availability gives these cities a structural advantage. Coastal markets lack this resource. Officials in high-ranked cities incentivize dense urban housing. They also support suburban development. This dual approach helps meet diverse housing needs.

Policy Changes Can Improve Affordability

Local officials should review zoning ordinances first. This is the primary recommendation for improving affordability. Removing barriers to construction can lower costs. Faster permitting reduces time and expense for developers. These steps help align supply with demand.