NAHB has updated its “housing affordability pyramid” for 2023, and the latest data show that 64.8 million households out of a total of 132.5 million are unable to afford a $250,000 home.
The pyramid is based on conventional underwriting standards that assume the cost of a mortgage, property taxes and property insurance should not exceed 28% of household income. Based on this methodology, NAHB economists have calculated how many households have enough income to afford a home at various price thresholds.
At the base of the pyramid are 39 million U.S. households with insufficient incomes to be able to afford a $150,000 home.
The pyramid’s second step consists of 25.8 million with enough income to afford a top price somewhere between $150,000 and $250,000. Adding up the bottom two rungs shows that there are 64.8 million households who cannot afford a $250,000 home.
Click here to read the rest of the article written by staff over at National Association of Home Builders
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