Foreign Media: 65% of U.S. Households Can't Afford New Homes
A new analysis by the National Association of Home Builders (NAHB) shows that, based on current home prices and a 6% mortgage interest rate, 65% of households across the United States are effectively excluded from the new housing market—meaning their total monthly housing expenses (principal, interest, taxes, insurance) exceed 28% of their monthly income.
There is significant variation among states, but the situation is broadly severe. In the states with the worst affordability, 83.4% of households in New Hampshire cannot afford new homes (median new home price: $678,000, requiring an annual income of $211,000); 83.0% in Hawaii (median price: $885,000, requiring $235,000 annually); 82.7% in Maine; 82.2% in Alaska; and 81.8% in Connecticut. A total of 11 states across the nation have more than 80% of households excluded from the new home market.
The most alarming aspect of the report is that the housing crisis is no longer confined to high-priced coastal cities. Even in the states with the lowest home prices—Mississippi (median new home price around $267,000, requiring less than $90,000 annually) and West Virginia (around $309,000)—the majority of families still cannot afford new homes. Moving to cheaper states is no longer a reliable solution. The root cause lies in the fact that wage growth has consistently lagged behind rising home prices nationwide, a structural imbalance that is profoundly reshaping Americans’ housing choices, wealth accumulation patterns, and homeownership prospects.
Original Source: toutiao.com/article/1864541874097411/
Disclaimer: This article reflects the personal views of the author.