Homebuyers starting families have always come into the market with a checklist of needs and wants for their future home—number of bedrooms, bathrooms, yard, garage, etc. But they also often have needs and wants when it comes to location—walkability, schools, stores, etc.
In a more affordability-challenged market over the past few years, these needs and wants are often compromised as homebuyers who are able to buy are taking what they can get. However, for those building families, good schools are often a deal-breaker.
Notably, though, states with the best school systems—concentrated in coastal and Northeast markets—are often the least affordable, meaning families struggle to find homes in their price range where their children can get a good education.
Looking at schools, affordability and available inventory, we averaged out the top five states that offer relative affordability and the ability to meet demand, while also boasting above-average schools for families.
Each state’s ranking on the list is determined by its placement on Realtor.com®’s state report cards ranking both affordability and ability to meet housing demand, coupled with ConsumerAffairs’ rankings of states by public schools
- Iowa
Iowa’s second-place ranking in affordability and ability to meet demand, coupled with its 15th-place ranking in schools, leads to it clocking in at No. 1 on the list.
Affordability-wise, Iowa saw a Realtors® Affordability Score (measures what share of for-sale inventory is affordable to households at different income levels) of 0.96—the highest among the Realtor.com report cards. In the price-to-income ratio, the median price in the state is $282,886 (the lowest in the top 5), and the median income is $75,991.
As for demand, Iowa’s permit-to-population ratio (compares each state’s share of national building permits to its share of the national population) shaped up to a very narrow 0.01 percentage point difference. The new construction premium clocked in at 56%, meaning new homes are more broadly accessible due to competitive pricing.
Schools scored a 51.5 (out of 100) on ConsumerAffairs’ rankings (with the highest score on the list being 68.98), due mostly to its ranking of fifth in K-12 academic outcomes—meaning the districts have strong test scores in the SAT and ACT, and strong graduation rates.
- Nebraska
Nebraska lands in second due to its combo of a sixth-place ranking in the state report cards and a 14th-place ranking in public schools.
Affordability in the state clocked in at 0.75, with the median income ($76,990) and the median price ($346,210) comparing well. Demand-wise, the permit-to-population ratio has a difference of about 0.15 percentage points, with permits on the higher end—a good sign for inventory. The new construction premium was strong at 49.9%.
Nebraska’s schools earned a score of 51.9, with the highest rankings for the state in school safety (11th place) and K-12 academic outcomes (14th place).
- Virginia
Virginia is the only state in the top 5 where the schools outranked the state report card, with schools sitting in ninth place while affordability sits in 15th place.
The state’s schools earned a score of 57.23, due to strengths in K-12 academic outcomes (sixth place) and higher education (ninth place).
Affordability in Virginia earned a score of 0.74, as the state’s median price of $446,963 compares well to the median income of $92,714. In terms of demand, the permit-to-population ratio has a 0.27 percentage point difference (with population on the higher end). The new construction premium is on the lower end at 30.9%, but still a good rate.
- North Carolina
Despite its 26th-place ranking for schools, North Carolina’s fifth-place ranking on the state report cards lands it in fourth on the list.
Affordability-wise, the state had a bit of a lower score at 0.62, due to a bit of a larger gap between the median price ($413,044) and the median income ($71,489). As for demand, the permit-to-population ratio does have a rather large gap (2.74 percentage points), but it heavily favors permits, showcasing more inventory.
While North Carolina’s schools aren’t the strongest at a score of 47.03, it does rank eighth for higher education for homebuyers planning for kids to go to college locally, or to go themselves.
- Delaware
Delaware has a similar set of rankings to North Carolina, with the seventh-place report card ranking outweighing the lower 25th-place ranking in schools.
Looking at affordability, the state earned a score of 0.70, with the median price of $486,044 compared with a median income of $87,667. Demand-wise, the permit-to-population ratio has a smaller gap of 0.14 percentage points, and favors permits for a bit more inventory. The new construction premium is also on the smaller side at 16%.
Delaware schools earned a score of 47.06, with school funding clocking in as the state’s highest ranking in 14th place.
Other highlights
There were quite a few ties on the list: nine in total, three of which were in the top 10 alone. Sixth place was tied between Florida and Wisconsin, seventh place was tied between Kansas and Texas and ninth place was tied between Indiana and Minnesota.
In terms of the individual reports, the No. 1 state among Realtor.com’s report cards was Indiana, with an A grade and a total score of 76.3. The affordability score was the second highest on the list at 0.89, the permit-to-population ratio only had a 0.04 percentage point difference and the new construction premium was 40.5%
As for ConsumerAffairs’ rankings of public schools, Massachusetts clocked in at No. 1 with a total score of 68.98, mostly due to a first-place ranking in K-12 academic outcomes and a second-place ranking in school funding—though Realtor.com’s housing ranking placed it second-to-last, behind only New York for housing affordability and inventory.
