A near-staggering seven out of 10 households lack the income to qualify for a mortgage under standard underwriting criteria, according to the National Association of Homebuilders.
The report said that rising home prices and interest rates "are taking a terrible toll" on housing affordability, with 87.5 million households—or roughly 69% of all US households—unable to afford a new median priced home.
These "staggering statistics" are part of NAHB's recently released 2022 priced-out estimates, which further show that if the median new home price goes up by $1,000, an additional 117,932 households would be priced out of the market. These 117,932 households would qualify for the mortgage before the price increase, but not afterward.
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