The ‘Blue Wave’ Swept Top Homebuilding States. What Happens Next?

On Tuesday, the governor’s offices in five states were swept up by the “blue wave,” as Democrats were elected to succeed current Republican leadership.

Iowa, Georgia, Nevada, Ohio, and Texas all flipped the governor’s seat from Republican to Democrat, after Democrats campaigned heavily on issues of affordability.

Of those five states, four rank in the top 15 on the Realtor.com® state Affordability & Homebuilding Report Cards for 2026, after making strides to expand housing supply under GOP leadership.

The report cards rank states on a points scale based on two major factors: affordability, such as the share of the state’s median income required to afford its median-priced home, and homebuilding, whether states are producing enough new housing to keep up with demand.

With affordability sticking out among the most important voter issues this year, how the new Democratic administrations improve, or at least maintain, states’ housing markets will be vital to whether they’re deemed successful.

Iowa

Democrat Rob Sand was selected by the voters of Iowa in an 11-point victory over Republican Zach Lahn. He will  take over the position from outgoing Republican Gov. Kim Reynolds.

Iowa was ranked second in the 2026 state report cards, earning a total score of 75.8 out of 100 for a grade of A. However, Iowa’s strength lies in the affordability aspect of the grading scale, not homebuilding.

The state’s median listing price sits at $282,886, which calls for just 25.4% of the $75,991 median income, giving it a Realtor Affordability Score of 0.96.

The downside comes in its homebuilding numbers. Iowa accounts for just 0.94% of the country’s issued building permits. While that number is on par with population—Iowa accounts for a 0.95% share of the country’s population—the state’s 56% new-construction premium indicates that builders are focused on larger, more expensive homes, rather than entry-level inventory and affordable builds.

In his “Truer Better Agenda,” Sand acknowledged that Iowa needs to build 21,000 more homes by 2030 to address the state’s housing shortage and improve affordability. Within his platform, he states his intention to work with the Legislature to ensure more homes, and more types of homes, are built.

“We need to cut the bureaucratic red tape that often stands in the way of that by simplifying the permitting and inspections process to reduce administrative time, redundant inspections, and costs for Iowa families,” reads Sand’s agenda.

Beyond building, Sand’s platform includes protecting renters from price gouging and removing interest from Iowa’s down payment and homebuyer assistance programs.

Jay Iverson, executive officer at the Home Builders Association of Iowa, said they have already been meeting with Sand to work on improving the regulatory process in the state, but the newly elected governor will face his share of challenges.

“He’ll still have a Republican-led House and Senate, so they’re going to have to figure out a way to get along. We fight the regulatory issues all the time, code updates, and all of the things that add significant costs,” Iverson told Realtor.com. “So we’re meeting with him even currently, before he’s sworn in, and hoping to deliver on that message of regulatory relief.”

Iverson said he’s looking forward to seeing Sand’s administration work with other governmental bodies to make improvements for Iowans, especially as the two parties come together.

“It’s just going to be a different environment. He sold himself during the campaign on, ‘We should all be able to get along, let’s figure this out,’ and I think we’re going to hold him to that,” said Iverson. “I’m looking forward to that part, just seeing what actually happens and how it works. It’s never easy.”

Texas

Texas saw a major upset on Tuesday, when the state elected a Democratic governor for the first time since 1991.

Gina Hinojosa, who will make history as Texas’ first Latina elected governor, denied incumbent Republican Gov. Greg Abbott a fourth term with her 7-point victory.

Texas is a consistent front-runner in the Realtor.com state report cards, coming in at No. 4 in 2026. The Lone Star State received a score of 71 out of 100 for a grade of A-.

Its success in the rankings is due to Texas being the nation’s largest homebuilder, accounting for 14.6% of all building permits issued in the country. This far outpaces any other state and is well above the state’s 9.3% population share.

The new-construction premium in Texas is only 7.6%, indicating that builders are adding affordable and competitively priced homes to the state’s inventory.

However, the state struggles slightly with affordability, with the median listing price of $364,749 taking up 32.5% of the state’s median income, giving it a Realtor Affordability Score of 0.66.

Housing has long been a priority of Hinojosa, who has been fighting against multinational corporations and predatory landlords since she was elected to the Texas House of Representatives in 2017. In 2025, she authored a bill that would prevent institutional investors from snapping up more than 10 single-family homes.

As governor, she intends to keep fighting corporate investors and price gouging that keep affordable housing and homeownership out of reach of Texans, according to her campaign.

The Texas Association of Builders feels positive about Hinojosa’s incoming administration and continued bipartisan efforts toward housing affordability in the state.

“She served on the Land and Resource Management Committee in the House this session and was very involved in a lot of the housing discussions and legislation on density, the need for more housing, and increasing housing supply, and was supportive of a number of these efforts during session,” TAB CEO Scott Norman told Realtor.com. “She was campaigning on some of these affordability issues on housing, so we’re excited to work with her and her new team.”

Norman also noted that the Texas Legislature has shown bipartisan efforts to rebuild its skilled workforce and expand training programs on every level, from public schools to trade schools and higher-education institutions.

“To get more people into these jobs that are AI-proof and that are lifetime careers that people can make a great living and own their own business, that’s something that has been very bipartisan,” said Norman.

Georgia

This week, Democrat Keisha Lance Bottoms made history when she was elected Georgia’s first Black governor and the nation’s first-ever Black female governor.

The former Atlanta mayor captured 54% of the vote against her GOP opponent, Rick Jackson, and will take over from term-limited Republican Brian Kemp.

In the state Affordability & Homebuilding Report Card from 2026, Georgia ranked No. 12, receiving a B for its score of 63 out of 100.

Georgia’s affordability comes in far behind Iowa, with its considerably higher median listing price of $392,112 and slightly lower median income of $75,118. The state comes in with a Realtor Affordability Score of 0.68.

It’s homebuilding, however, is far more significant. Georgia accounts for 4.2% of the country’s building permits, behind only Texas, Florida, California, and North Carolina. The share of permits outpaces Georgia’s share of the nation’s population, which is 3.31%.

During her time as Atlanta mayor, Bottoms raised more than $700 million and helped build or preserve more than 7,000 affordable housing units, according to her campaign. She also introduced the City of Atlanta Housing Affordability Action Plan, which included a road map for increasing housing inventory.

As governor, she plans to create a Georgia Housing Fast Track initiative to further streamline permitting and establish an affordable housing trust fund to assist in the development of housing. Additionally, her platform includes expanding down payment and renter assistance programs throughout the state.

Ohio

Democrat Amy Acton is the first woman to be elected governor of Ohio, beating Republican Vivek Ramaswamy by 8 points. She will replace term-limited Republican Gov. Mike DeWine.

Ohio earned the No. 15 spot on the 2026 state affordability report card. It received a C+ for its score of 59.4 out of 100.

The state comes in with a healthy Realtor Affordability Score of 0.88, on par with the leading state of Indiana’s 0.89. Its median listing price of $277,348 is reasonable compared to its median income of $70,196.

Of all building permits in the U.S., Ohio accounts for 2.32% of them, slightly behind its share of the nation’s population, which is 3.48%.

The real issue for affordability in Ohio is the 84.6% premium on newly constructed homes compared to existing homes, which indicates that builders are catering to a more expensive market, rather than adding affordable homes to the state’s inventory.

Like the candidates above, Acton’s housing platform centers on removing red tape and streamlining the permitting process to make both new building and the renovation of older properties easier. She also plans to expand the Welcome Home Ohio program, created by DeWine, which provides grants and tax cuts for rehabbing older homes. She wants an expansion to encourage more new construction as well.

Placing restrictions on private equity firms and corporations buying up homes and providing support for first-time buyers are also among Acton’s housing plan, according to Columbus Underground.

Nevada

The outlier on this list is Nevada. While the rest of the states rank in the top 15 states for affordability on the state report cards, Nevada comes in at No. 34 with a grade of C- for its score of 45.8 points out of 100.

Nevada accounts for 1.3% of the country’s total permits, slightly above its population share of 0.96%. Newly constructed homes come with an 18.5% premium compared to existing homes, which is not outlandish for this list.

The real struggle for Nevada is affordability. The state’s median income is $74,855, on par with No. 2 Iowa, but its median listing prices tower above at $491,936 for a Realtor Affordability Score of just 0.52.

Democrat Aaron D. Ford, the incoming governor, has his work cut out for him in the homebuilding sector.

The former Nevada attorney general held an 8-point victory over Republican incumbent Joe Lombardo on Tuesday  to become the state’s first Black governor.

Ford has laid out a number of pathways through which he intends to make housing more affordable to Nevada residents. Removing red tape and delays in permitting, developing vacant and underused land in the Las Vegas Valley, and expanding support for first-time buyers are among his top priorities.

Ford has also expressed that he will push back on recent tariffs imposed by the Trump administration that have made homes more expensive to build and purchase.

“Nevada families are being forced to absorb higher costs caused by tariffs on essentials like aluminum, steel, lumber, and even basic fixtures like bathroom vanities,” said Ford in this “Affordable Nevada” plan. “A $1,000 increase in the price of a new home pushes an estimated 115,000 households out of reach of homeownership—a price spike working families cannot afford.”

Allaire Conte contributed to this report.