PUBLISHED BY THE EL PASO ASSOCIATION OF BUILDERS : NATIONAL , STATE AND LOCAL HOME BUILDING INDUSTRY NEWS

As a result of limited resale inventory and and second quarters of 2024 , and the income In 14 out of 176 markets in the second measures by home builders to increase percentage for low-income families remained quarter , the typical family is severely costburdened ( must pay more than 50 % of their housing affordability , the median price on an the same in both quarters as well ( 77 %). existing home in the United States during the However , those seeking to purchase existing income on a median-priced existing home ). In second quarter of 2024 was higher than that of homes in the U . S . found their costs rising in 89 other markets , such families are costburdened ( need to pay between 31 % and a new home . Therefore , a family needed to the second quarter . A typical family needed spend more of their income to buy a typical 39 % of their income to pay for a median-priced 50 %). There are 73 markets where the CHI is existing home than a typical newly built home . existing home in the second quarter , up from 30 % of earnings or lower .

The National Association of Home Builders 36 % in the first quarter . A low-income family The Top 5 Severely

( NAHB )/ Wells Fargo Cost of Housing Index needed 79 % of their income vs . 71 % in the Cost-Burdened Markets

( CHI ) found that in the second quarter of 2024 , previous quarter . San Jose-Sunnyvale-Santa Clara , Calif ., was a family earning the nation ’ s median income of “ While interest rates are expected to the most severely cost-burdened market on the $ 97,800 needed 38 % of its income to cover the gradually move lower in the coming quarters , CHI during the second quarter , where 94 % of a mortgage payment on a median-priced new home price growth will likely slow as inventory typical family ’ s income is needed to make a home . The median price of a new home in the levels rise and prospective buyers continue to mortgage payment on an existing home . This second quarter was $ 412,300 vs . the $ 422,100 experience challenging affordability conditions ,” was followed by : price for a median existing home , therefore the said NAHB Chief Economist Robert Dietz . • San Francisco-Oakland-Berkeley , Calif . ( 79 %) share of income needed to buy a typical

The NAHB / Wells Fargo

• San Diego-Chula Vista-Carlsbad , Calif . ( 76 %) existing home was higher , at 39 %.

Cost of Housing Index ( CHI ) • Urban Honolulu , Hawaii ( 76 %)

“ With the nation facing a housing affordability The CHI is a quarterly analysis of housing • Naples-Marco Island , Fla . ( 74 %) crisis , additional , attainable housing supply is costs in the U . S . and at the metropolitan area Low-income families would have to pay the only way to sustainably ease housing cost level . The CHI represents the share of a typical between 147 % and 188 % of their income in all burdens for American families ,” said NAHB family ’ s income needed to make a typical five of the above markets to cover a mortgage . Chairman Carl Harris , a custom home builder mortgage payment . The mortgage payment is The Top 5 Least Cost-Burdened Markets from Wichita , Kan . “ NAHB ’ s 10-point plan to calculated by taking median home prices , By contrast , Decatur , Ill ., was the least costburdened markets on the CHI , where families tackle the housing affordability crisis gets at the assuming a 10 % down payment , and adding heart of the problem , which is addressing taxes , insurance and PMI . Median family needed to spend just 15 % of their income to impediments such as excessive regulations , income is published by the Department of pay for a mortgage on an existing home . inefficient zoning local zoning rules and Housing and Urban Development . A lowincome CHI is also calculated for families • Cumberland , Md . -W. Va . ( 17 %)

Rounding out the least burdened markets are : permitting roadblocks that prevent builders from increasing the nation ’ s housing supply .” earning only 50 % of the area ’ s median income . • Springfield , Ill . ( 18 %)

The CHI also found that low-income families , The CHI breaks down the percentage of a • Elmira , N . Y . ( 18 %) defined as those earning only 50 % of the family ’ s income needed to make a mortgage • Peoria , Ill . ( 19 %) median income , would have to spend 77 % of payment on an existing home in 176

• Binghamton , N . Y . ( tied at 19 %) their earnings to pay for a median-priced new metropolitan areas based on the local median Low-income families in these markets would single-family home in the second quarter . home price and median income . Percentages have to pay between 30 % and 39 % of their

The index debuted in the first quarter of this are also calculated for low-income families in income to cover the mortgage payment for a year , and there was no change in the all of these markets . The same data on median-priced existing home . percentage of a family ’ s income needed to median-priced new single-family homes is only Please visit nahb . org / chi for tables and purchase a new home ( 38 %) between the first available on a national level . details .

2024Issue8 BuildersOutlook 9

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