Roughly 87.5 million households across the U.S. are not able to afford a new median priced home in 2022, according to NAHB’s Eye on Housing, meaning that 69% of Americans have incomes that are insufficient to qualify for a mortgage under standard underwriting criteria. NAHB’s recently released ‘priced out’ estimates reveal that if the median new home price increases an additional $1,000, another 117,932 households will be priced out of the housing market and will no longer qualify for a mortgage.
The metropolitan areas which would be most affected by a sudden price gain include New York-Newark-Jersey City, NY-NJ-PA, and Chicago-Naperville-Elgin, IL-IN-WI, where 4,734 and 4,273 households would be priced out, respectively.
The metropolitan area with the largest priced out effect, in terms of absolute numbers, is New York-Newark-Jersey City, NY-NJ-PA, where 4,734 households would not be able to qualify for a mortgage to purchase a new median-priced home if its price goes up by $1,000. This is largely because New York metro area, where the median-priced new home is only affordable to 14% of households, is the most populous metro area with roughly 8 million households. Chicago-Naperville-Elgin, IL-IN-WI metro area registers the second largest number of priced-out households (4,273), followed by Philadelphia-Camden-Wilmington, PA-NJ-DE-MD metro area (3,235).
Advertisement
Related Stories
Off-Site Construction
New Study Examines Barriers and Solutions in Manufactured Housing
The study from Harvard's Joint Center looks at the challenges faced by developers using manufactured housing and how they're overcoming those barriers
Affordability
The Disappearing Act That Is Middle-Income Housing
An expert weighs in on the diminishing supply of middle-income housing, which is particularly acute in California, and what to do about it
Off-Site Construction
Utah Passes Bill to Regulate Modular Construction at the State Level
Goals for housing innovation and affordability meet in Utah's passage of a new bill that establishes a statewide modular construction program