Nearly Half of U.S. Households Can’t Afford a $250,000 Home

Housing Affordability
Published

NAHB has updated its housing affordability graph for 2024, and the latest data show that 66.6 million households, 49% out of a total of 134.9 million, are unable to afford a $250,000 home.

The graph is based on conventional underwriting standards that assume the cost of a mortgage, property taxes and property insurance should not exceed 28% of household income. Based on this methodology, NAHB economists have calculated how many households have enough income to afford a home at various price thresholds.

2024 Housing Affordability Priced Out Graph
Click here for larger version of the graph.

For example, the minimum income required to purchase a $150,000 home with a mortgage rate of 6.5% is $45,975. At the base of the graph are 40.5 million U.S. households with insufficient incomes (below $45,975) to be able to afford a $150,000 home.

The graph’s second step consists of 26.1 million with enough income to afford a top price somewhere between $150,000 and $250,000. Adding up the bottom two rungs shows that there are 66.6 million households who cannot afford a $250,000 home.

The nationwide median price of a new single-family home is $495,750, meaning half of all new homes sold in the U.S. cost more than this figure and half cost less. A total of 134.9 million households — roughly 77% of all U.S. households — cannot afford this median-priced new home based on a mortgage rate of 6.5%.

The top of the graph shows that 9.8 million households (adding up the top three rungs) have enough income to buy a $850,000 home, and 2.8 million even have enough for a home priced at $1.6 million. But market analysts should never focus on this to the exclusion of the wider steps that support the graph’s base.

This graph clearly illustrates the nation’s housing affordability crisis. NAHB has put out a 10-point plan to address this urgent issue. The plan outlines initiatives that can be taken at the local, state and federal levels to address the root of the problem — impediments to increasing the nation’s housing supply.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Advocacy

Sep 15, 2025

NAHB Joins Housing Leaders to Endorse Principles of Housing Affordability

The association joined a diverse coalition of nearly 60 housing stakeholders in support of four key common-sense housing solutions outlined by Pew.

PWB Week | Professional Women in Building Council

Sep 15, 2025

The Impact of the Professional Women in Building Leadership Grant

Professional Women in Building's annual scholarhsip programs provide students and emerging professionals with the resources, support and opportunities they need to thrive and lead the housing industry.

View all

Latest Economic News

Economics

Sep 15, 2025

Builders Stay Cautious as Single-Family Permits Extend Downtrend

Single-family housing permits slipped for the seventh month in a row, highlighting affordability headwinds and weak demand. While multifamily permits ticked up, the sector’s volatility leaves the outlook uncertain. The split underscores a housing market still under strain, with single-family softness weighing on broader growth prospects.

Economics

Sep 12, 2025

Household Real Estate Asset Values Reach New High

The market value of household real estate assets rose to $49.3 trillion in the second quarter of 2025, according to the most recent release of U.S. Federal Reserve Z.1 Financial Accounts. The value rose by 2.7% from the first quarter and is 1.1% higher than a year ago. This measure of market value estimates the value of all owner-occupied real estate nationwide.

Economics

Sep 11, 2025

Parking Trends in Newly Completed Single-Family Homes, 2024

In 2024, 65% of newly completed single-family homes featured two-car garages, according to NAHB’s analysis of the Census’s Survey of Construction data. The share of new homes with three or more car garages stood at 15%, continuing a downward trend from its peak of 24% in 2015 and decreasing 2 percentage points from 2023.