Missouri is Struggling in Affordability and Homebuilding: Can Governor Kehoe Jump-Start Construction?

Missouri’s housing market sits squarely in the middle of America—and in the middle of the Realtor.com® State-by-State Housing Report Card.

The state earned a C, reflecting a market with reasonable prices but a sluggish pace of new construction. The report, part of the Let America Build campaign, measures how each state balances current affordability with its progress in building new homes to meet future demand. Missouri’s grade shows that while housing remains within reach for many families, the state’s limited construction activity could hinder affordability down the road.

But this is a national problem. To that end, 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 can Missouri do to meet the moment and increase homes in the state?

Missouri’s “C” grade explained

Realtor.com’s analysis gave Missouri a total score of 56.2. The state’s median listing price was $298,696 in 2024, supported by a median household income of $68,010. Missouri’s Realtors Affordability Score came in at 0.82—above the national average—indicating that most households can still find homes within their means.

However, the state accounted for just 1.2% of the nation’s housing permits in 2024, despite making up 1.8% of the population. That translates to a permit-to-population ratio of 0.67, showing construction activity isn’t keeping pace with the state’s size or potential demand. The new construction premium, the difference between new and existing home prices, reached 50.9%, suggesting that new homes are being built at higher-end price points rather than filling entry-level needs.

Economists at Realtor.com note in the report that this pattern is common among Midwestern markets where affordability remains stable but housing stock is aging. Without steady new construction, future price pressures could emerge as younger buyers compete for limited inventory.

How Missouri compares with its neighbors

Across the Midwest and South, states continue to outperform coastal regions in both affordability and supply. According to the Realtor.com New Construction Insights report, the median new-home price nationwide held steady at $450,797—flat year over year—while resale prices rose 2.4%. That narrowed the national new construction premium to just 7.8%, the lowest ever recorded.

Regionally, the South remains the national leader in both new builds and affordability, thanks to strong permit activity and a wide range of price points. In contrast, the Midwest—home to Missouri—shows steadier, slower growth. Builders in Missouri’s largest metros, including St. Louis, Kansas City, and Springfield, face rising land and labor costs that have constrained the pace of new construction.

“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 Kehoe’s opportunity to lead

Missouri Governor Mike Kehoe has yet to introduce a major statewide housing initiative, despite challenges being clear. Instead, his focus has been strengthening Missouri's energy infrastructure and supporting long-term economic development

In April 2025, he signed Senate Bill (SB) 4 into law.

"With this legislation, Missouri is well-positioned to attract new industry, support job growth, and maintain affordable, reliable energy for our citizens," said Governor Kehoe. "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 an important issue to be sure , the National Association of Home Builders’ Blueprint to Address the Housing Affordability Crisis offers a roadmap Missouri could follow that could increase home production to also meet the needs of residents. The plan argues that by eliminating excessive regulations, modernizing zoning codes, reducing permitting delays, and promoting careers in the skilled trades, states can move towards shrinking the gap in the nation’s 1.5-million-home shortage.

By taking a more active role—streamlining approvals, encouraging workforce housing, and expanding infrastructure funding—Missouri could position itself as a regional leader in housing growth.

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