Home builders release new priced out study
Even small increases in the cost of a home can prevent hundreds of people from achieving homeownership. That’s according to a new study from the National Association of Home Builders (NAHB).
In Utah, for example, a $1,000 increase in the statewide median new home price of $419,078 would push 1,496 households out of the market. Based on their incomes, these households would qualify for a mortgage before the price increase but not after.
Nationally, a $1,000 increase pushes 153,967 households out of the market, according to the study.
“Builders report several factors contributing to a lack of affordable housing, including shortages or delays in obtaining building materials; rising material costs, particularly record-high lumber prices; excessive regulations; a shortage of construction workers; and a lack of buildable lots,” said NAHB in a press release about the study.