Des Moines Tops US Housing Affordability Rankings
Des Moines received the highest grade in a national housing affordability survey. Los Angeles finished at the bottom of the list.
Des Moines, Iowa, received an A+ grade in a new national housing affordability survey. The city ranked first among the 100 largest US metropolitan areas. Los Angeles received an F grade and ranked last. The survey measured current price levels and the pace of new home construction.
Realtor.com released the report this week. Senior economist Joel Berner stated the rankings capture both present conditions and future trajectories. The study noted a national housing shortage of more than four million units. Builders face rising costs for materials and labor alongside high mortgage rates.
Midwest Cities Lead National Rankings
Several Midwest and Sun Belt metros ranked in the top five. Raleigh, North Carolina, placed second. Columbia, South Carolina, ranked third. Houston, Texas, and Indianapolis, Indiana, followed at fourth and fifth. These cities combined strong job growth with accessible land.
Coastal cities dominated the bottom of the list. Providence, Rhode Island, ranked second from the bottom. New York City, Honolulu, and Boston completed the lowest tier. High land costs and restrictive regulations limited supply in these markets.
Zoning Rules Shape Market Outcomes
Berners identified local government policy as a key differentiator. Top-ranked cities permit faster construction processes. They maintain less restrictive zoning laws. These jurisdictions incentivize both dense urban housing and suburban developments.
Builders in high-ranking areas face fewer regulatory hurdles. Permitting processes proceed quickly in these regions. Land remains abundant compared to coastal competitors. This availability allows developers to absorb increasing demand from growing job markets.
Policy Changes Needed For Affordability
Berners advised local officials to revisit zoning ordinances first. This action addresses the root cause of supply constraints. High mortgage rates currently depress buyer activity. Lowering regulatory friction remains the primary tool for improving long-term affordability.
