Page 7 - GSABA Builder Brief March 2020

U.S. Households (in Millions)
by Highest Priced Home They Can Afford Based on Income: 2020
>$1.55 million 2.2 $1.05-$1.55 million 2.4
$850k-$1.05 million $700-$850k $600-$700k $500-$600k $405k-$500k $325k-$405k $250k-$325k $175k-$250k $100k-$175k $0-$100k
63 MILLION U.S. HOUSEHOLDS CANNOT AFFORD A $250,000 HOME
2.6
3.9
4.2
6.7
9.5
11.5
14.0
17.7
20.0
25.4
Source: Calculations by the National Association of Homebuilders Housing Policy Department, based on income data from the 2017 American Community Survey Public Use Microdata Sample File, U.S. Census Bureau.
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MARCH 2020 | GREATER SAN ANTONIO BUILDERS ASSOCIATION
The 2021 proposed Energy Code will also require a home to be solar ready, a dedicated electrical receptacle where a gas appliance is installed and will limit the choices for water heaters. We must urge our elected officials to make informed decisions as they pass onerous codes and regulations.
When you apply conventional underwriting standards to the cost of a mortgage with property taxes and insurance, guidelines say that this amount should not exceed 28 percent of the household income. NAHB has put together a graph (below) that shows that 63 million U.S. households out of a total of 120 million households cannot afford a $250,000 home. This number represents over half of the population of the United States. Let’s work together to get this critical information into the hands of decision makers.
It is important to share what the construction industry means to the greater San Antonio area. The construction industry generates approximately 1/7th of the area’s economic output and employs over 133,000 people. Construction contributes over $35.8 billion each year with a payroll of $6.7 billion and generates tax receipts of over $232 Billion. Let’s make our voices heard. We need your support.
Thank you for being a member of GSABA,
FROM THE PRESIDENT
House Price