That's how many more households would be unable to afford a newly constructed home if the median price rises by just $1,000, according to a new analysis by the National Association of Home Builders (NAHB).
The median price for a new single-family home has risen by more than $17,000 to over $346,000 in the past year, thanks to the skyrocketing price of lumber, shortages in building materials and construction workers, and a lack of buildable lots, according to NAHB.
Currently, 75.1 million, or 60% of U.S. households, are already “priced out” of a new home at the median price, the NAHB said. The trade group’s analysis relies on Census Bureau income distributions and assumes a down payment equal to 10% of the purchase price, a 30-year fixed rate mortgage, and mortgage insurance costs.
The study, which estimated priced-out figures for every state and over 300 metropolitan areas, showed Texas having the largest number of homebuyers that would be priced out, followed by California and Florida.
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