Income Growth Helps Existing Affordability Constraints NAHB Cost of Housing Index Shows Affordability Challenges by Rebecca Radtke, LCMP  The NAHB survey also tracks the purchase of existing homes which shows that a typical U.S. family would need to pay 35% of their income for a median-priced home while a low-income family would pay 70% of their pay to make the same payment. With that, high income and high-cost states like California face affordability challenges deeply. In an article featured in The Orange County Register, an income of $373,200 is required to buy a home in the area, marking a 129% increase over five years. The article then went on to explain that only 17% of California households have the means to buy this year. Assembly Bill 306 however would freeze building standards for all new housing through at least 2031. AB 306 wouldn't necessary delete any of the current rules - energy use, fire and earthquake safety, plumbing, electrical wiring, and the layout of new builds - but it would pause requirements in order to help with affordability for fire victims in Altadena and the Palisades. Further, according to the NAHB's survey the percentage of a family's income needed to purchase a new home - overall - dipped from 38% in the 2024 fourth quarter to 36% in the first quarter due in part to a 6.5% rise in median family income. |
