SEATTLE — The National Association of Home Builders (NAHB) has released its 2021 Priced-Out Estimates report, showing how higher home prices and rising interest rates affect people’s ability to purchase new homes.
In Washington State, the median home price is $522,023 and requires a minimum income of $112,295 just to qualify for a mortgage. With that stat alone, more than 72% of Washington’s approximate 3 million households are priced out already.
“Legislators are considering a number of bills this session that will significantly increase the cost of new homes,” said Tracy Doriot, 2021 president of the Building Industry of Washington. “Many of the bills have worthy goals. However, they also have significant consequences.”
“Every $1,000 increase in the cost of building a new home prices more than 2,500 people out of the market in Washington,” he said. “We’re asking legislators to also consider the effects of their policies have on preventing more and more people from attaining the American dream of home ownership.”
“By adding more and more regulation, legislators, sadly, are telling those in the disadvantaged, lower and middle economic classes that they will not be able to own a home,” explained Doriot. “That’s why, as Washington continues work to recover from the economic fallout of the COVID-19 pandemic, the BIAW is supporting legislation that helps address the state’s housing shortage with homes more people can afford.”
The NAHB has been actively opposing measures that add new regulations, requirements and restrictions that drive up the cost of home ownership and reduce the supply of new housing to meet the state’s needs.
Cox Media Group