Mississippi Is Struggling in Affordability and Homebuilding: Can Gov. Reeves Build Momentum?

Mississippi’s housing market tells a story of unrealized potential.

Despite having one of the lowest median home prices in the country, the state’s slow pace of new construction and lagging incomes have kept affordability under pressure. The Realtor.com® State-by-State Housing Report Card gave Mississippi a C-, reflecting a market where modest prices don’t always translate to attainable housing.

The report, part of Let America Build campaign, measures how states balance affordability and homebuilding—two sides of the same coin when it comes to the future of housing.

Understanding the need for action President Donald Trump recently put pressure on homebuilders to increase construction nationwide, given the issues with construction in the country. In a post on his Truth Social platform in early October, he accused major builders of hoarding lots to prop up prices—likening them to OPEC, which restricts oil output to maintain high prices.

“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,” Trump wrote. He urged Fannie Mae and Freddie Mac to intervene and “get Big Homebuilders going” to “restore the American Dream.” 

So what is Mississippi's local government doing to answer this call to action?

Inside Mississippi’s “C-” grade

Realtor.com’s data shows Mississippi earning a total score of 44.2, near the bottom of the national rankings. The state’s median listing price stood at $291,262 in 2024, while the median household income reached $55,030. The Realtors Affordability Score came in at 0.72, indicating that even with relatively low prices, many households are still stretched thin by limited wage growth and rising mortgage costs.

In terms of supply, Mississippi accounted for just 0.5% of all new housing permits nationwide in 2024, despite making up 0.9% of the U.S. population. That leaves a permit-to-population ratio of just 0.56, showing the state is underbuilding relative to its size. The new construction premium—the gap between new and existing home prices—was 41.9%, suggesting that new homes remain out of reach for many Mississippians.

Economists at Realtor.com point out in the report that this imbalance between low prices and limited new housing is a hallmark of underperforming markets. Without a stronger pipeline of new construction, even small population or job gains can lead to affordability declines.

The South leads, but Mississippi lags behind

According to the Realtor.com New Construction Insights report, new homes nationwide are giving buyers more options and helping moderate price growth. The median new-home price held steady at $450,797, while resale prices climbed 2.4%—bringing the national new construction premium to a record low of 7.8%.

Regionally, the South dominates the nation’s housing activity, accounting for the majority of new and existing home listings. Builders in Texas, Florida, and Georgia continue to deliver homes at competitive prices, keeping affordability relatively stable. But in Mississippi, where local permitting is slower and land development costs remain high, construction has not kept pace.

Mississippi’s smaller metros—such as Jackson, Gulfport, and Hattiesburg—mirror this pattern: limited new housing, older existing stock, and slow income growth. Without an influx of new supply, the state’s affordability advantage could erode. But again, this is far from just an issue in the Magnolia state.

“America is short more than 4.7 million homes, and every new home built helps close that gap while fueling local economies," says Shannon McGahn, executive vice president and chief advocacy officer at the National Association of Realtors®.

"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.”

Governor Reeves faces a housing crossroads

On March 20, the Mississippi House of Representatives passed House Bill 1, the "Build Up Mississippi" Act, much to the delight of Governor Tate Reeves. However, despite it's namesake, the bill did not launch any major statewide new construction initiatives.

Instead, the bill's headline was the cut of state income taxes and reducing sales tax on groceries, increasing the desirability of the state for migration.

But while Reeves himself has not pushed through any measures to increase housing to accomodate new residents, Lieutenant Governor Delbert Hosemann has.

In June 2025, Hosemann vowed to ask lawmakers to pass incentives to lower home prices, especially on new construction.

“If they didn’t pay taxes on the materials that could lower the house, and have more people get into them. You will see a first-time home buyer’s whole series of things that will go forth this year out of the legislature,” he said according to local news outlet.

The National Association of Home Builders’ Blueprint to Address the Housing Affordability Crisis outlines a clear playbook for states like Mississippi: reduce red tape, modernize zoning, and improve access to skilled trades and financing. The plan argues that expanding housing supply is the only reliable way to tame shelter inflation and keep costs within reach for working families.

If Hosemann can live up to his promise, then perhaps Mississippi could see its score improve next year.

This article was produced with editorial input from Dina Sartore-Bodo and Gabriella Iannetta.