NAHB recently released its 2023 priced out estimates, showing how higher prices and interest rates affect housing affordability. The new estimates show that 96.5 million households (roughly 73 percent of all U.S. households) are not able to afford a new median priced new home in 2023, meaning their incomes are insufficient to qualify for a mortgage under standard underwriting criteria. If the median new home price goes up by $1,000, an additional 140,436 households would be priced out of the market. These 140,436 households would qualify for the mortgage before the price increase, but not afterward.
NAHB’s latest update also includes priced out estimates for all states and metropolitan areas. The priced out numbers vary with both the sizes of the local population and the affordability of local new homes. Read More