Housing affordability is increasingly shaping the decisions of buyers, builders, and policymakers across the U.S. In 2024, the divide between states with manageable housing markets and those facing critical affordability issues has grown wider than ever.

Let’s break down the key findings—and what they mean for homeowners, buyers, and investors looking to make smart real estate moves in this environment.

🔑 Key Insights from the 2024 Housing Affordability Rankings

Montana ranks as the least affordable state in the U.S., driven by a rapid influx of residents from high-cost coastal regions and a severe shortage of entry-level housing. Home prices have surged 66% in just four years—outpacing wage growth and inflating the cost of homeownership beyond reach for many.

1. Columbus, Ohio has fewer affordable homes per capita than New York or San Francisco, highlighting that affordability challenges are no longer confined to the coasts.
   

2. Iowa earns the title of most affordable state in the country, thanks to a median listing price of $294,600 and a median household income of $77,132—yielding a price-to-income ratio of just 3.0. Even with a 40% price increase since 2020, Iowa’s market remains accessible, supported by more than 10,000 housing permits issued annually since 2022.
   

3. Nationwide, we’re short by 4 million homes. This chronic undersupply continues to push prices up—especially in states experiencing fast population growth.
   

4. South Carolina leads in homebuilding activity, but affordability remains mixed due to price escalation in high-demand areas.
   

5. Texas is stepping up in a big way, issuing over 15% of the nation’s new residential building permits in 2024. Still, affordability challenges persist in urban centers where demand continues to outstrip supply.
   

📊 Methodology Overview

Affordability scores were calculated by comparing median listing prices to median household incomes across each state, accounting for affordability at different income levels.

States like Iowa benefit from a healthy ratio between income and housing costs, while others—such as Montana, Idaho, and California—struggle due to elevated price levels and slower wage growth.

🏠 What This Means for You

Whether you’re planning to buy your first home, invest in income property, or simply understand your home’s position in today’s market, these affordability dynamics are critical. They impact not only purchase decisions but also long-term wealth creation through real estate.

It’s also worth noting—beware of major listing portals like Realtor.com or Zillow. These platforms track and sell your data to advertisers. If you value your privacy, use SearchHomesInPrivate.com—a secure platform that never sells or shares your information.

✅ Final Thoughts and Next Steps

Real estate isn’t just local—it’s hyperlocal. While national data provides essential context, your best real estate decisions come from aligning macroeconomic trends with on-the-ground insights in your specific market.

As a real estate professional with over 45 years of experience advising clients in the South Bay and Palos Verdes areas, I can help you navigate these market shifts with confidence and clarity.

📞 Call or text me, George Fotion, at 424-722-9136
📩 Or email me at george.fotion@homeispalosverdes.com

Or use the Calendly blue tab at the bottom of this page or the “Contact Us” tab at the top of this page…

Let’s make sure your next move is your smartest one yet.