【World Property Journal】Every $1,000 Median Home Price Increase in U.S. Pushes 154,000 Buyers Out of the Market

A new study just released this week by the National Association of Home Builders is putting a spotlight on the nation's housing affordability crisis and illustrates how even a relatively small increase in the price of a home can prevent hundreds of thousands of households from achieving the goal of homeownership.

The study found that a $1,000 increase in the U.S. median new home price of $346,757 would push 153,967 households out of the market. In other words, based on their incomes, these households would be able to qualify for a mortgage to purchase the home before the price increase, but not afterward.

Putting the affordability challenge further in perspective, 75.1 million households, or roughly 60 percent of all U.S households, are currently unable to afford a new median priced home.

"While builders across the nation are reporting solid demand for new homes fueled by low interest rates, favorable demographics and a suburban shift to more affordable markets as a result of the COVID-19 crisis, many prospective buyers are hitting a brick wall due to a run-up in pricing in recent years," said NAHB Chairman Chuck Fowke, a custom home builder from Tampa, Fla.

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