New Data Show Housing Affordability Concerns Across the U.S.

New NAHB analysis shows how widespread the housing affordability challenge remains across the United States.

In 39 states and the District of Columbia, more than 65% of households are unable to afford the median-priced new home, indicating a significant disconnect between higher new home prices, elevated mortgage rates, and stagnant household incomes. 

States and Metros with the Biggest Affordability Issues

New Hampshire has the steepest affordability problem, with 83.4% of households unable to afford the state’s median new home price of $677,982. Hawaii (83%) and Maine (82.7%) are not far behind. 

For metro areas, several continue to feel significant affordability pressures. In the high-cost California region of San Jose-Sunnyvale-Santa Clara, only 14% of all households would be able to afford a median-priced new home.

In contrast, the median new home price in Rome, Ga., is $107,567, which is affordable for more than three-quarters of area households.

However, lower prices for new homes do not always indicate that housing is more affordable. In Mississippi, for example, the median new home price is $266,837 (less than half of New Hampshire’s). Despite that, 61.1% of households still find new homes out of reach.

And in Delaware, where the median price of a new home is $373,666, more than half (56%) of households would struggle with affordability.

How damaging would price increases be for new home affordability?

Minor price increases could potentially price out tens of thousands of new home buyers. For example, a mere $1,000 increase would make new housing unaffordable for an additional 14,365 households in Texas. Among metro areas, that same $1,000 increase would have the biggest impact in the New York-Newark-Jersey City area, where 4,028 additional households would be priced out.

In regions where new builds are already unaffordable to the large majority of residents — such as in Silicon Valley — the price increases would not price out many additional households, as housing was already so widely unattainable. 

For more on how states and metro areas across the country are impacted by housing affordability, and to view an interactive dashboard, read this Eye On Housing article from NAHB Principal Economist Na Zhao.