Texas dominates list of the nation’s most affordable housing markets

Where homes are still within reach

For many Americans, buying a home feels harder than ever. Yet affordability varies substantially across the country. Realtor.com’s 2026 state report cards compare housing affordability and homebuilding performance across all 50 states and Washington, D.C.

Texas, Nebraska and South Dakota all placed among the report’s 10 highest-ranked states. Their results show that some parts of the South and Midwest continue to combine comparatively attainable prices with stronger levels of residential construction.

How stronger homebuilding can improve affordability

States with stronger housing results often have available land, fewer development barriers, and permitting systems that make it easier to add homes. Increasing supply gives growing communities more capacity to respond to demand.

New construction is not necessarily cheaper than existing housing. Its affordability depends on land, materials, labor, regulations, and the kinds of homes being built. Even so, sustained construction can expand buyers’ choices and reduce pressure caused by limited inventory.

Coastal housing remains expensive

Many of America’s lowest-ranked states for housing affordability and homebuilding are on the coasts. Realtor.com’s 2026 report gave F grades to Connecticut, California, Hawaii, Rhode Island, Massachusetts, and New York.

High prices, limited construction, and other supply constraints continue to make homeownership difficult in many of these markets. When housing supply fails to keep pace with demand, buyers have fewer choices and affordability suffers.

Demand keeps prices climbing

Large job centers attract workers from across the country every year. Many of these workers earn higher salaries and compete for available homes. Strong demand often pushes home prices beyond what average buyers can afford. The effect spreads across entire metro areas.

As more people move into these regions, housing becomes harder to secure. Buyers frequently offer above the asking price to win bidding wars. That trend makes it tougher for middle-income families to enter the market. Housing costs continue to rise as demand remains strong.

Years of underbuilding matter

Housing shortages did not appear overnight across the United States. Experts point to decades of underbuilding as one major reason for today’s affordability problems. Fewer homes were built than the growing population required.

Limited supply gives buyers fewer options in many communities. Prices often increase because available homes receive strong interest. Even moderate demand can lead to higher costs when inventory stays low. Building more homes is widely seen as part of the long-term solution.

Nearby markets feel the pressure

High housing costs often push buyers beyond expensive cities. Families may search in nearby communities where homes cost less, adding demand that can raise prices in surrounding markets.

This overflow affects secondary housing markets across the country. Residents may face greater competition as buyers expand their searches beyond major cities.

Fun fact: Houston is larger than New York City, Chicago, and Philadelphia combined by land area, giving it plenty of room for continued suburban growth.

California buyers face added costs

Home prices are only part of the financial picture for many Californians. High living expenses can reduce household buying power. A salary that stretches far in a lower-cost state may not go as far in San Francisco, Oakland, or San Jose.

These costs can make saving for a down payment more difficult. Some buyers relocate in search of greater affordability, while others remain and adjust their budgets to manage high housing and everyday expenses.

Texas ranks first for Gen Z U-Haul moves

U-Haul’s 2026 midyear migration report ranked Texas as the top net-gain state for Gen Z customers. The results cover one-way U-Haul transactions from July 2025 through June 2026.

Dallas–Fort Worth ranked second nationally among Gen Z net-gain metros, followed by Austin at No. 6 and Houston at No. 10. U-Haul said Gen Z customers tended to favor densely populated markets with colleges, entry-level jobs, and access to apartments.

Dallas-Fort Worth leads millennials

Dallas-Fort Worth has become the nation’s top destination for millennial movers. The metro area offers a wide range of jobs across several industries. Many buyers also find more housing options than in some coastal cities.

Strong population growth has fueled new neighborhoods throughout the region. Businesses continue expanding alongside the growing workforce. Families and professionals are helping shape the area’s future. Dallas-Fort Worth remains one of the country’s fastest-growing housing markets.

Texas attracts more generations

Texas is not only popular with Gen Z movers. U-Haul data also ranks the state second for both millennials and Generation X. That broad appeal reflects opportunities across different life stages. Many households see Texas as a place to build long-term stability.

People move for careers, family, and lower housing costs compared with many coastal states. Growing cities continue adding homes, businesses, and services. Expanding suburbs provide additional choices for buyers and renters. The steady influx supports Texas’ ongoing population growth.

Fun fact: Texas has more than 1,200 incorporated cities, offering one of the widest ranges of housing markets in the United States.

Rising rents create new hurdles

Buying a home is not the only housing challenge facing Texans. Rent consumes a substantial share of income for many households, leaving less room for savings and other expenses.

High rent can delay plans to purchase a first home by making it harder to assemble a down payment. In fast-growing cities, demand for available apartments can add to affordability pressures. Housing costs remain an important concern for renters and prospective buyers alike.

More than half of Texas renters are cost-burdened

Census Bureau data show that 52.7% of Texas renter households were cost-burdened in 2024, meaning they spent at least 30% of their income on rent and utilities. High housing costs can leave less money for groceries, transportation, healthcare, and savings.

That financial pressure can make it harder to handle emergencies or prepare for homeownership. Even in a growing state, access to affordable rental housing remains a major concern.

Want to see how high-net-worth buyers are reshaping Nevada’s housing market? Take a closer look at what’s driving the changes.

Housing affordability varies across America

Housing affordability differs substantially among states, metropolitan areas, and counties. Realtor.com’s 2026 state report cards ranked Texas fourth, Nebraska sixth and South Dakota eighth for their combined affordability and homebuilding performance. Several coastal states remained near the bottom of the rankings amid high prices and limited construction.

Migration and housing supply will continue shaping where people can afford to live. As markets evolve, buyers will weigh price, employment, location, and quality of life before deciding where to purchase a home.

Wondering why affordable homes are becoming harder to find? Explore what’s happening to America’s missing middle housing.

Which part of the country would you choose to call home? Share your thoughts in the comments and leave a like if affordable housing matters to you.

This slideshow was made with AI assistance and human editing.

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