Wisconsin finds itself in a relatively strong position when it comes to home building conditions, according to a new study by Realtor.com that evaluated all 50 states and Washington, D.C., for affordability and new housing construction.

Released last week, the Realtor.com report assigns each state a letter grade based on housing supply, affordability metrics, zoning complexity, and population trends. While many states earned low marks due to surging housing costs and limited new construction, Wisconsin landed squarely in the middle — a reflection of its moderate affordability and steady, if unspectacular, homebuilding pace.

By contrast, California received an “F” rating — one of five states to receive a failing grade — despite leading the nation in new home construction volume. The reason: Even with high levels of building activity, the state's housing supply isn’t keeping up with its growing population. This mismatch has driven prices sky-high, leaving many Californians struggling to afford homes in their own communities.

"California was one of five states to get an F," the study notes. "Even though it’s one of the five states with the highest number of new houses being built, the number of new homes aren’t keeping up with the state’s exploding population."

The study gives high marks to a few states that have maintained affordability despite more modest construction levels. Iowa emerged as one of the standout performers, earning an “A” — and was the only Midwestern state to do so.

"Iowa was one of three states — and the only one in the Midwest — to receive A ratings. Iowa ranks low on the number of new homes being built, but those homes largely are more affordable than those being built in high growth states," according to the report.

Wisconsin’s position reflects a healthy balance of affordability, buildable land, and population growth that hasn’t overwhelmed its housing market. Though not without challenges, the state has avoided the housing crises seen on the coasts, thanks in part to lower land costs, fewer regulatory burdens in many areas, and slower growth rates that give builders more time to respond to demand.

Experts say that Wisconsin could improve its grade further by increasing the supply of starter homes and streamlining zoning in urban areas, particularly in fast-growing cities like Madison and Milwaukee, where affordability is beginning to tighten.

The report serves as a benchmark for policymakers across the country as they weigh the challenges of zoning reform, infrastructure expansion, and housing affordability in the post-pandemic era. For states like Wisconsin, it highlights how maintaining a balance between construction volume and price control is key to long-term housing stability.

Originally reported by Alex Gary in Beloit Daily News.