NAHB: 127,560 households priced out with each $1,000 increaseNAHB: 127,560 households priced out with each $1,000 increasehttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=217442019-01-10T06:00:00Z2019-01-10T20:00:00Z

​​​​WASHINGTON – A $1,000 increase in the cost of a median-priced newly-built home pushes 127,560 prospective buyers out of the market, according to the National Association of Home Builders (NAHB). 

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.

Additionally, a quarter-point rise in the rate for a 30-year fixed-rate mortgage would price out around one million households.

Of all the states, Texas had the largest number of homebuyers that would be priced out of the new-home market. The $1,000 price increase would push out 11,152 households. 

Texas is followed by California (9,897) and Ohio (7,341).​

"This study illustrates how even a relatively small increase in price or interest rates can dramatically impact housing affordability," said NAHB Chairman Randy Noel. "Housing affordability is a serious problem right now in communities across the country. Rising interest rates, regulatory barriers, higher building materials costs, and labor shortages all add to the cost of a home and are preventing households from achieving the goal of homeownership."

National Association of Home Builders
https://www.nahb.org/en/news-and-publications/press-releases/2019/nahb-study-shows-households-priced-out.aspxRead more at {Source}

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