In a clear signal of America's growing housing affordability crisis, the National Association of Home Builders (NAHB) reports that typical families are now spending an unsustainable portion of their income on housing while builder confidence has plummeted to a five-month low.
According to the NAHB/Wells Fargo Cost of Housing Index (CHI), a family earning the nation's median income of $97,800 needed 38% of its income to cover the mortgage payment on a median-priced new home in the fourth quarter of 2024. The situation is even more dire for low-income families, who would need to spend a staggering 76% of their earnings to afford the same home.