Rising Home Costs Price More Homeowners Out of the Market
Each $1,000 increase in the cost of a median-priced home pushes another 1,516 Bay Area households out of the market, according to the National Association of Homebuilders’ updated 2020 priced-out estimates. Statewide, a $1,000 bump in the sales price knocks 8,870 California households out of the running. A California household needs to earn $120,739 per year to qualify to purchase a median-priced home of $530,987 per year. NAHB bases its estimates on conventional home mortgage underwriting rules that a mortgage, property taxes and insurance should not exceed 28 percent of household income. Click HERE to view NAHB’s report along with state and metropolitan area estimates for 2020.