Missouri’s housing market continues to walk a fine line between affordability and underbuilding, placing the state in the middle of the latest Realtor.com® State-by-State Housing Report Card. The report—released as part of the national Let America Build campaign—gave Missouri a C, signaling a market where home prices remain reasonable but construction activity lags behind population needs.
The findings highlight a pivotal moment for the state. Missouri is still affordable for many families, yet it is not building enough new homes to prevent future shortages. Over time, that imbalance could erode the very affordability that currently benefits the state’s buyers and renters.
The challenges in Missouri also reflect a broader national trend. In early October, President Donald Trump posted a message on his Truth Social platform calling on the nation’s largest homebuilders to ramp up construction amid what he described as an industry-wide slowdown. Accusing major firms of intentionally withholding land to maintain high home prices, Trump wrote:
“They’re my friends ... but now, they can get Financing, and they have to start building Homes. They’re sitting on 2 Million empty lots, A RECORD.”
He urged federal housing agencies Fannie Mae and Freddie Mac to “get Big Homebuilders going” to “restore the American Dream.”
While Trump’s comments targeted a national issue, Missouri’s data underscores why the pressure is mounting.
Realtor.com gave Missouri a total score of 56.2, supported by metrics that show the state remains affordable but is not building fast enough:
Despite relatively strong affordability, Missouri’s low share of building permits reveals a deeper structural problem. New homes are being built, but not at entry-level price points. The 50.9% premium shows many new properties are skewed toward higher-priced segments, leaving young families and first-time buyers with fewer attainable options.
Realtor.com economists point out that many Midwestern markets share similar challenges: older housing stock, steady demand, but slow reinvestment. Without consistent construction, these states could see future price escalations as buyers compete for a limited pool of homes.
The broader Midwest and South continue to outperform coastal states in both affordability and access to new housing. According to the Realtor.com New Construction Insights report:
The South remains the national standout, issuing more permits and delivering homes in a wider range of price points. Missouri, in contrast, sits in a region with slower and steadier construction activity. Rising land and labor costs in St. Louis, Kansas City, Springfield, and surrounding suburbs have further limited developers’ ability to build affordable homes.
Shannon McGahn, executive vice president and chief advocacy officer at the National Association of Realtors®, emphasized the importance of stepping up construction.
“America is short more than 4.7 million homes, and every new home built helps close that gap while fueling local economies,” McGahn said.
She added, “NAR research shows that the U.S. has faced a persistent housing shortage for more than a decade, driving up prices and limiting options for buyers. Expanding housing supply creates jobs, supports small businesses, and affords families the opportunity to build generational wealth.”
Missouri Governor Mike Kehoe has so far avoided rolling out a major statewide housing agenda, instead focusing on long-term economic positioning and energy policy. Earlier this year, he signed Senate Bill 4, designed to bolster workforce and energy infrastructure.
In defending that priority, Kehoe stated:
"With this legislation, Missouri is well-positioned to attract new industry, support job growth, and maintain affordable, reliable energy for our citizens. This is about powering Missouri for Missourians and not relying on other states and countries to produce our power. This legislation strengthens our economic development opportunities, helps secure our energy independence, and provides consumer protections to build a resilient energy future for generations to come."
While SB 4 reinforces the state’s economic and energy stability, housing experts argue Missouri cannot fully meet its long-term economic goals without addressing its construction slowdown. Employers continue to cite housing availability as a deciding factor in where to expand operations and relocate workers.
The National Association of Home Builders (NAHB) has laid out a national framework that Missouri could adopt to help improve home production. The plan recommends:
Each of these reforms would position Missouri to better align its affordability advantage with new supply—an essential step as the nation grapples with a housing shortage of 1.5 million homes.
If the state were to streamline approvals, promote workforce housing, and invest in infrastructure tied to new development, Missouri could quickly move from a mid-tier performer to a regional leader in housing growth.
Originally reported by The Realtor.com Team.
