What the 2026 Housing Report Card Means for Charlotte Home Buyers and Sellers

North Carolina just earned a top-5 national grade on the 2026 Realtor.com Housing Report Card. For buyers and sellers in Charlotte and South Charlotte, that result has real meaning. There are also a few important caveats worth understanding before you draw conclusions about your own situation.

At The Zahn Group, we have worked in the South Charlotte market for over 15 years. We read reports like this not to celebrate rankings, but to translate them into practical guidance for the people we work with every day. Here is what the data actually says, where North Carolina stands relative to the Southeast and the rest of the country, and what it means if you are thinking about buying or selling in the Charlotte area.

What the Realtor.com Housing Report Card Measures

The Realtor.com Housing Report Card scores all 50 states on a 100-point scale across two equally weighted categories.

Affordability (50% of score)

• What share of a state's homes a median-income household can realistically afford
• What percentage of median income is required to cover a median-priced home

Homebuilding (50% of score)

• How many building permits are issued relative to population
• The price gap between new construction and existing homes
  
  

The combination matters. Affordability tells you how accessible the market is today. Homebuilding tells you whether supply is keeping up with demand, and whether things are likely to get better or worse for buyers over time.

The National Picture: A Clear Regional Divide

No state earned an A+ in 2026. Realtor.com described that result as a sign of how far the country still has to go to make homeownership broadly attainable.

The regional split, however, is unmistakable.

Every single A and B grade went to a state in the South or Midwest. Every F grade went to a state in the Northeast or West. Not most of them, every one.

2026 Regional Average Scores:

• Midwest: 60.9 (average national rank: #16)
• South: 60.4 (average national rank: #16)
• West: 41.8 (average national rank: #35)
• Northeast: 30.0 (average national rank: #43)

States at the top share a common profile: available land, lower regulatory barriers to building, and a construction industry delivering homes within reach of what local buyers actually earn. States at the bottom share the opposite. High prices, restrictive zoning, and building activity that cannot keep pace with population growth.

For anyone watching where buyers are relocating from, and Charlotte sees a steady flow of them, this divide explains a lot.

How the Southeast Stacks Up

The Southeast is one of the strongest-performing regions in the country on this report, and it is not particularly close.

2026 Southeast State Grades:

• South Carolina: A (ranked #2 nationally, building champion)
• North Carolina: B+ (ranked #5 nationally)
• Georgia: B
• Florida: B
• Tennessee: C
• Virginia: C
  
  

South Carolina is the standout builder. The state issues nearly twice as many permits as its population share would suggest, and its newly built homes actually cost less than existing listings. That combination is rare anywhere in the country right now.

Georgia and Florida both earned B grades. Both rank in the top seven nationally for permit volume. Together with Texas, California, North Carolina, Arizona, and South Carolina, those seven states account for more than half of all U.S. construction permits issued in 2024.

Tennessee and Virginia sit in the middle of the national pack with C grades. Functional markets, but without the building momentum that pushes a state into the top tier.

If you are comparing the Southeast to coastal markets in the Northeast or West, the difference is not subtle. The Southeast is where the housing market is working.

North Carolina: B+, Ranked #5 in the Country

North Carolina held its #5 national ranking for the second consecutive year. The state earned a B+ based on two factors that directly affect Charlotte buyers.

Construction activity is a genuine strength. North Carolina ranks among the top permit-producing states in the country. And critically, new homes here are priced slightly below existing listings. That is the opposite of what buyers face in most markets nationally, where new construction carries a meaningful price premium.

Affordability is a real and growing challenge. This is where North Carolina falls short of an A. A household earning the state's median income currently directs roughly 40% of that income toward a median-priced home. The standard affordability benchmark is 30%. So while North Carolina is building at a strong pace, prices are still stretching buyers, and that tension shows up clearly in our market.

That gap is something The Zahn Group talks through with buyers regularly. A strong state grade does not automatically mean Charlotte is easy to buy in. It means the conditions here are better than most of the country. That is a meaningful distinction.

What the Failing States Tell Us About Charlotte's Market

The six states that earned F grades were New York, Massachusetts, Rhode Island, Hawaii, California, and Connecticut. All six received those grades for the second consecutive year. The pattern across all of them is consistent: high prices, limited land for development, restrictive zoning, and construction that cannot keep up with demand.

New York finished dead last with a score of 8.5 out of 100. A typical buyer there has to spend more than 55% of monthly income to afford a median-priced home. The state is also building at roughly half the rate its population growth requires.

For Charlotte, this matters directly. We continue to attract buyers from those markets. People who want to own a home they can actually afford, in a state that is actively building, are landing in North Carolina. That inbound demand is one of the structural forces shaping our market, and it is not slowing down.

What This Means for Charlotte and South Charlotte Buyers and Sellers

The state grade is not the Charlotte grade. North Carolina's B+ is a statewide average that includes more affordable inland and rural markets. Charlotte, as a high-demand metro with strong job growth, has its own affordability dynamics. Prices here run above the state median. The pressure is real, and it requires a plan.

New construction deserves a serious look. The fact that new homes in North Carolina are priced at or below existing inventory is significant. In many markets, buyers pay a premium for new. Here, that premium has flipped. If you have not explored new builds in the communities surrounding South Charlotte, that conversation is worth having. 

The Southeast advantage is real, but it is not unconditional. Charlotte is better positioned than the vast majority of U.S. markets. That does not make it effortless. It makes smart preparation more important than ever, because more buyers are competing here precisely because conditions are favorable.

Relocating buyers are part of your competitive environment. If you are a local buyer, you are often competing with people moving from markets where $700,000 was entry-level. Understanding that dynamic helps you prepare and price your offers realistically.

A good report card does not replace a good plan. Whether you are buying or selling, clarity on your budget, your timeline, and your non-negotiables matters more than any national ranking. That is where The Zahn Group's work actually starts.

Molly's Take

Frequently Asked Questions About Charlotte Housing Affordability

Is Charlotte, NC an affordable city to buy a home? Charlotte is more affordable than most major metros, but it is not inexpensive. North Carolina's statewide affordability score ranks among the top five in the country, but Charlotte as a high-demand metro sits above the state median price. As of 2026, buyers here should expect to budget carefully and get pre-approved before they start shopping seriously.

Is now a good time to buy a home in Charlotte? Timing in real estate depends more on your personal situation than on any market condition. What the 2026 data shows is that North Carolina has strong new construction activity and homes priced competitively relative to the rest of the country. For buyers who are financially ready, waiting for a perfect moment often costs more than moving forward with a clear plan.

Why are so many people moving to Charlotte from other states? Charlotte consistently ranks among the top relocation destinations in the country. The combination of job growth, relative affordability compared to Northeast and West Coast markets, and quality of life in neighborhoods like South Charlotte draws buyers from states where the same dollar buys significantly less. The 2026 report card data reflects exactly why: states like New York and California earned failing grades while North Carolina earned a B+.

What neighborhoods in South Charlotte are seeing the most new construction activity? South Charlotte and its surrounding communities have been among the most active areas for new development in the Charlotte metro. If you want a current read on where inventory is moving and where new builds are priced competitively, that is a conversation best had directly with our team. 

How do I know if I can afford a home in Charlotte right now? The standard affordability benchmark is spending no more than 30% of gross monthly income on housing. North Carolina's current market puts the typical buyer above that threshold, which makes pre-approval and a clear budget conversation with your agent essential before you start touring homes. The Zahn Group works with buyers at the start of that process, not just at the offer stage.

Ready to Talk Through What This Means for You?

National data gives you context. Local expertise gives you a strategy.

The Zahn Group has spent more than 15 years working with buyers and sellers in South Charlotte, in neighborhoods like Montibello, Providence Plantation, and the communities surrounding SouthPark. We know this market from the inside, not because we read about it, but because we live and work here.

If you want to understand what the 2026 housing data means for your specific situation, whether you are buying, selling, or just starting to think it through, we are glad to have that conversation.

Get in touch with The Zahn Group | thezahngroup.com

The Zahn Group | South Charlotte Real Estate | Charlotte, NC