Wednesday, May 30, 2012
By the Numbers, NAHB's Priced Out Analysis: 431
Three years ago NAHB released an analysis that helps assess the impact of any action that increases the price of a new home. This Spring NAHB updated that analysis, call the "Priced Out Effect," including an analysis by metro area.
Nationally, a $1,000 increase in the price of a home prices out 232,447 families from homeownership. In Greenville, 431 families are priced out of homeownership by that same $1,000 price increase.
What can increase the price of a new home? Many things including government regulation, increases in prices for materials and labor, and even crime. One recent example is the efforts by the fire sprinkler industry to mandate automatic fire sprinklers in new homes. Assuming a $6,000 increase in the price of a typical new home, the fire sprinkler mandate will price out 2,586 families from owning a new home in the greater Greenville area.