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

Education

Jul 23, 2025

Project Scheduling and Estimating Tips to Boost Your Business

NAHB's fall slate of live online courses are geared toward helping you prepare for any scenario in today's economy.

Labor

Jul 22, 2025

State-Level Employment Data for June

According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 147,000 in June following a gain of 144,000 jobs in May. Nonfarm payroll employment increased in 27 states in June compared to the previous month, while employment decreased in 23 states and the District of Columbia.

View all

Latest Economic News

Economics

Jul 22, 2025

Top 10 Builder Market Share Across Metros

An earlier post described how the top 10 builders in the country captured a record 44.7% of new single-family closings in 2024. BUILDER Magazine has now released additional data on the top ten builders within each of the 50 largest new home markets in the U.S., ranked by single-family permits.

Economics

Jul 21, 2025

Use of Private Water and Sewer Systems in New Single-Family Homes

The share of new single-family homes built with individual septic systems declined slightly in 2024 compared to the previous year, while the share of homes served by private wells remained steady.

Economics

Jul 21, 2025

Sales of Lower-Priced New Single-Family Homes Declined Over the Past Five Years

From 2020 to 2024, sales of lower-priced new homes declined significantly as the market moved toward higher-priced segments. Rising construction costs—driven by inflation, supply chain disruptions, and labor shortages—as well as higher regulatory costs, made it increasingly difficult for builders to construct affordable homes.