Many Americans feel that owning a home is increasingly out of reach due to soaring housing costs since the pandemic. Yet, one region stands out where homeownership remains attainable. The Midwest dominates a list of states where housing is most affordable, based on a Newsweek analysis. Out of the top ten states where homeownership is most feasible, eight are in the Midwest.
Newsweek’s American Dream Index analyzed 33,772 U.S. ZIP codes using six opportunity pillars, including housing access. The index scores range from 0 to 100, answering whether a household with typical income can afford to live there. These scores rely on public data, using metrics like median home value-to-income ratio, rent as 35 percent or more of income, and the owner-occupancy rate.
Only one Southern and one Northeastern state made the top ten, highlighting a growing contrast between the affordable interior and costly coasts. The housing access scores offer a clear rule of thumb:
- 65 and over: Thriving
- 55 to 64: Doing Well
- 45 to 54: Holding Steady
- 35 to 44: Facing Challenges
- 35 and less: Struggling
The states with the highest scores are:
- Iowa: 52.0
- West Virginia: 51.6
- South Dakota: 49.6
- Indiana: 48.8
- Kansas: 48.7
- Michigan: 48.4
- Nebraska: 48.0
- Missouri: 47.7
- Maine: 47.4
- Ohio: 47.4
In contrast, the states with lower scores, mainly on the West and East coasts, are:
- District of Columbia: 12.5
- Hawaii: 16.2
- California: 16.6
- Nevada: 26.2
- New York: 26.8
- Oregon: 28.4
- Massachusetts: 30.1
- Washington: 30.5
- Colorado: 31.2
- Florida: 32.2
Midwest’s Affordability Explained
The Midwest’s affordability stems from lower demand, according to Chen Zhao, Redfin’s head of economic research. Fewer job opportunities make these areas less desirable, keeping prices lower. Unlike the South, Midwest states did not see the pandemic-induced home price surge, retaining affordability due to lower starting prices. Redfin data shows June 2026 median sale prices in states like Iowa, Indiana, Kansas, and Ohio were far below those in the Northeast and West, where prices exceeded $400,000 and sometimes $700,000.
Data from FHFA states that home prices rose about 51 percent nationally from 2019 to 2025, with a near 66 percent jump in the Northeast. In states like Iowa, Nebraska, Kansas, and Ohio, home prices remain lower relative to local incomes compared to states like California, New York, or Massachusetts. This price difference allows Midwestern buyers to pay smaller down payments and avoid high-income percentages on their homes.
Building and Geographic Flexibility
High home prices on the coasts are due to limited inventory and high popularity. These regions have underbuilt homes relative to job and population growth, says Hannah Jones, a senior economist at Realtor.com. Economic hubs like tech in the Bay Area and finance in New York drive demand, pushing up prices for buyers and renters. Midwest cities have fewer geographic constraints, unlike San Francisco or New York City, allowing easier outward expansion.
Compared to Western and Northeastern states, the Midwest has fewer zoning and land-use restrictions. Although the South and West lead in building permits and new home availability, the Midwest benefits from balanced markets. This stability means prices neither soar nor crash.
This affordability makes the Midwest a viable homebuying option, even as six-figure premiums dominate elsewhere. Still, it might not be the preferred choice for all. Despite varying trends, Nationwide data shows existing home sales decreased 2.4 percent month-over-month in June but rose 2.8 percent year-over-year. Sales were steady in the Northeast and increased by 2.1 percent in the Midwest, 3.8 percent in the South, and 2.8 percent in the West.