Delaware Is Holding Steady in Affordability and Homebuilding: Can Gov. Meyer Keep the Momentum?

Delaware’s housing market continues to chart a middle path between affordability and demand.

The state earned a C+ on the Realtor.com® State-by-State Housing Report Card , part of the Let America Build campaign measuring how well each state balances home prices with new construction.

President Donald Trump recently addressed this issue at a national level, putting pressure on large homebuilders to increase construction nationwide. 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.” 

Delaware’s steady performance reflects a market that remains relatively accessible but faces growing pressure from limited supply and out-of-state migration.

A small state with solid fundamentals

Delaware posted a total score of 57.5, placing it slightly above the national midpoint. The state’s median listing price of $491,463 is high compared with nearby southern states but remains more affordable than many parts of the Northeast corridor.

With a median household income of $76,379, Delaware households are still managing to stay competitive in the market. The Realtor Affordability Score came in at 0.58, suggesting that affordability is tight but not yet out of reach.

Delaware’s new construction activity is modest but steady. The state accounted for 0.5% of all new home permits in 2024 while representing just 0.3% of the U.S. population—a strong permit-to-population ratio showing builders are active relative to the state’s size.

The new construction premium, or the difference between new and existing home prices, was 29.6%, indicating that new homes are somewhat more expensive but still within reach for many buyers.

How Delaware compares regionally

The Realtor.com New Construction Insights report found that across the U.S., new homes are gaining ground on affordability. Nationally, the median listing price for new construction was $450,797, nearly unchanged from the year before, while existing home prices rose 2.4%. That shift brought the national new construction premium to 7.8%, its lowest level ever recorded.

Delaware, like much of the Mid-Atlantic, benefits from steady in-migration but faces limited available land, especially in coastal and suburban areas. It's a problem shared with many of its neighboring states.

“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 Meyer focuses on workforce housing

Governor Matt Meyer is hoping to make changes towards increasing new construction in his state. In January, he announced his Workforce and Affordable Housing Permitting Executive Order, establishing a statewide working group tasked with providing recommendations on the creation of a “one-stop-shop” for projects in each county, streamlining the permitting and licensing processes in state and local governments.

“Housing is a human right, and no Delawarean should be left out in the cold,” said Governor Meyer. “With this Executive Order, we take the first step in overhauling and streamlining our permitting and homebuilding process, bringing folks across the state together to collaborate and provide solutions on how we can get people in quality homes they can afford as soon as possible.”  

Michael Riemann, the president of the Home Builders Association of Delaware (HBADE), called the new executive order a positive step in the right direction to bring down home construction costs.

“The time it takes to get through the approval and permitting process results in additional costs which ultimately increase the final price of a home,” Riemann told the Delaware Business Times. “A streamlined permitting process does not need to sacrifice regulatory requirements. This is a positive first step and we look forward to working with the governor to bring down the cost of housing.”

Building smarter for the future

The National Association of Home Builders’ Blueprint to Address the Housing Affordability Crisis offers strategies that align closely with Delaware’s approach: reduce regulatory barriers, support skilled trades, and expand financing for attainable housing. NAHB emphasizes that boosting supply through smarter zoning and workforce investment is essential to improving affordability across all price ranges.

Delaware’s C+ grade shows a state holding steady in uncertain times. While affordability remains stronger here than in many coastal markets, ongoing population growth and land constraints present clear challenges. With Governor Meyer's renewed focus on workforce and redevelopment housing, Delaware has a chance to build on its progress—and keep its housing market balanced for years to come.

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