https://northeasterngroup.com/wp-content/uploads/2020/02/Pyramid-2020.jpg 519 768 admin https://northeasterngroup.com/wp-content/uploads/2019/01/NEGRLogo2.fw_.png admin2020-02-20 18:57:552020-02-20 18:57:55Market News: Explaining the Housing Affordability Crisis
Did you know that 49% of home buyers are looking to buy homes priced under $250,000? This number comes from a recent study buy the NAHB, where economists have calculated the number of households able to afford a home at varying price thresholds, based on the underwriting standard that a mortgage, property taxes, and property insurance should not exceed 28% of household income.
While the pyramid above shows that 7.2 million households have enough income to buy a $850,000 home, and 2.2 million even have enough for a home priced at $1,550,000, analysts cannot deny the larger tiers supporting the pyramid’s base.
This graph helps put housing affordability concerns into perspective, revealing that out of 120 million households, 63 million cannot afford a $250,000 home. Where do you fall on the pyramid?
For the full article posted by the National Association of Home Builders, click here.