According to CAR, $1,000 INCREASE IN HOME PRICES KEEPS MORE THAN 200,000 OUT OF THE MARKET
Each $1,000 increase in the cost of a new, median-priced home forces 206,000 prospective buyers out of the marketplace, according to a new study by the National Association of Home Builders (NAHB). The number of households affected varies across states and metro areas and largely depends on their population, income distribution, and new home prices.
Among the states, the number of households that would no longer be eligible to qualify for a mortgage based on a $1,000 increase to a median-priced home ranges from a low of 313 in Wyoming to a high of 18,250 in Texas.
The analysis found that every $833 increase in fees paid during the construction process – such as the price of a construction permit or an impact fee – adds an additional $1,000 to the final price of the home.
Measured by local metro areas, the number of households who would be priced out of the market based on a $1,000 increase range from a low of 19 in Napa, Calif. to a high of 5,742 in the New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa. area