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In the competitive market, many aspiring home buyers continue to be priced out, according to a new study from the National Association of Home Builders.
About 87.5 million households are unable to afford a median-priced new home. If prices rise by just $1,000, an additional 117,932 people would be priced out, according to the NAHB’s 2022 Priced-Out Estimates report.
Higher home prices, the highest inflation in 40 years, and rising mortgage rates are affecting more household budgets.
The NAHB released the following pyramid that breaks down affordability. The pyramid shows that about 36 million households cannot afford a $150,000 home. The top of the pyramid shows that about 3 million households can buy a home priced above $1.55 million.
