Realtor.com: Des Moines, Raleigh Lead Best U.S. Housing Markets

Realtor.com's latest report identifies the top 10 U.S. metropolitan areas currently offering the best conditions for homebuyers, evaluating both housing affordability for local earners and the volume of new construction to meet future demand. Des Moines, Iowa, secured the top position, with Raleigh, North Carolina, following closely as the only other metro area to receive an "A+" grade.

The report highlights that local housing policies, particularly concerning zoning and permitting, significantly influence housing affordability. The prevalence of cities in the Midwest and South at the top of the rankings indicates a clear geographic division in the nation's housing market.

Danielle Hale, chief economist at Realtor.com, stated that increasing homebuilding is crucial for lasting affordability. "The metros at the top of these rankings show that buyers benefit most when communities pair homes that are attainable for today’s local earners with enough new construction to support tomorrow’s demand," she explained.

Other high-ranking metro areas included Columbia, South Carolina; Houston, Texas; Indianapolis, Indiana; Austin, Texas; Jacksonville, Florida; Oklahoma City, Oklahoma; Palm Bay, Florida; and Columbus, Ohio. The median listing price in most of these "A"-rated areas was below $450,000, with Austin being an exception.

The study emphasized the impact of local politics, noting that "A"-rated metros often feature more flexible zoning and streamlined approval processes that facilitate construction. Conversely, areas receiving "F" grades, such as Los Angeles and New York, face challenges with high prices and limited new building, often attributed to more restrictive regulatory environments.