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Home My WebLink About5A Public CommentConsolidated Agenda Correspondence Received through 04/08/2021 Batch Two Consolidated Agenda Correspondence Received through 04/08/2021 Batch One 2021 BOARD OF DIRECTORS PRESIDENT Deborah McGarrey Southern California Gas Company Jst VICE PRESIDENT Tom Dubose Dubose Design Group, Inc. SECRETARYnREASURER Pedro Rincon Osborne Rincon CPAs VICE PRESIDENT OF ASSOCIATES Allan Levin Allan Levin & Associates PAST PRESIDENT Fred Bell Nobell Energy Solutions CHIEF EXECUTIVE OFFICER Gretchen Gutierrez DIRECTORS Brian Benedetti Brian Benedetti Construction Mark Benedetti Dede Callanan North American Title Mario Gonzales GHA Companies Joe Hayes First Bank Todd Hooks Agua Caliente Band of Cahuilla Indians Dave Lippert Lippert Construction , Inc Paul Mahoney PMA Advertising Bruce Maize Rilington Group Russ-Martin Mission Springs Water District Jim Murdock PIRCH Dan Olivier Nethery Mueller Olivier Alan Pace Petra GeoSciences John Powell, Jr. Coachella Valley Water District Phil Smith Sunrise Company Jeff Wattenbarger Wattenbarger Construction April 7, 2021 City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Attn: Justin Clifton, City Manager Jeffrey S. Ballinger, City Attorney RE: City Council Meeting-April 8th, 2021 Agenda Item -New Business -SA Dear Messrs. Clifton & Ballinger: On behalf of the Desert Valleys Builders Association (DVBA) thank you for the opportunity to provide· written comments to the New Business Item -SA, related to the discussion on lnclusionary Housing Programs. We look forward to being fully engaged with the_ City Council and staff on this issue as you begin discussion on the merits of this type of program. While on the surface the use of inclusionary housing as an ordinance by a governing agency appears to have the potential for the benefit of additional housing units at an affordable price; the reality of either set-aside units (of any to be determined amount) or an in-lieu fees or other such mitigating options; does not in reality translate into more affordable units. The burden of placing a number of units into a more "affordable" market price point under a for-sale scenario or a set-aside of units for a rental property at a reduced rental rate, means that the remaining for sale units and/or rental units {those which are market rate listed} must bear the burden of the costs of subsidizing the affordable units. This includes, but is not limited to, the cost differential on fees, construction materials, land costs & development aniJ labor. This will in turn drive up the cost of the market rate units, further exacerbating the cost of homeownership or rental availability. 34360 Gateway Drive • Palm Desert • CA 92211 (7 60) 776-7001 office • (7 60) 77 6-7002 fax www.TheDVBA.org ITEMNO. 6 P\ oLJ /0~ b U • 2021 BOARD ot DIRECTORS PRESIDENT Deborah McGarrey Southern California Gas Company I" VICE PRESIDENT Tom Dubose Dubose Design Group, Inc. SECRETARYnREASURER Pedro Rincon Osborne Rincon CPAs J/JCE PRESIDENT OF ASSOCIATES Allan Levin Allan Levin & Associates PAST PRESIDENT Fred Bell Nobell Energy Solutions CHIEF EXECUTIJ/E OFFICER Gretchen Gutierrez DIRECTORS Brian Benedetti Brian Benedetti Construction Marie Benedetti Dede Callanan North American Title Mario Gonzales GHA Companies Joe Hayes First Bank Todd Hooks Agua Caliente Band of Cahuilla Indians Dave Lippert Lippert Construction, Inc Paul Mahoney PMA Advertising Bruce Maize Rilington Group Russ-Martin Mission Springs Water District Jim Murdock PIRCH Dan Olivier Nethery Mueller Olivier Alan Pace Petra GeoSciences John Powell , Jr. Coachella Valley Water District Phil Smith Sunrise Company Jeff Wattenbarger Wattenbarger Construction A desert valleys builders ossociotion The DVBA has recently completed its Tri-Annual Fee Study Report, providing real- time data on the cost of construction permits within each of the Coachella Valley jurisdictional cities, including Palm Springs. With the report completed and using the model of a 35-unit subdivision/2,500 sq.ft. residence as the template, the cost of permit fees within the City of Palm Springs currently is at approx. $37,402 per lot. These costs place the City as the 2nd most expensive community for residential construction permits in the Coachella Valley. Further, the City is only separated from being the most expensive by $135 dollars under this review report. Additionally, material costs over the past 12 months (lumber goods nationwide have increased nearly 400% from a year ago), along with the ongoing labor shortages in skilled labor and/or individuals still on governmental assistance and not returning to the workforce, are contributing factors to the continued decline of housing production. Material and labor costs have a direct correlation to the cost of construction and delivery of housing, regardless of the type of unit produced. With the current economic recovery just beginning due to the COVID 19 pandemic, housing of all types (new, resale, apartments, etc.) is at a premium across much of the State and certainly across the Coachella Valley. As of March 30th, there were only 742 single family houses (new and resale) on the market across all 9 cities (a 3- week inventory of units) compared to a year ago of 3,043 units. Current Median sales prices in the Coachella Valley are listed at $549,000/single family and $339,000/condo/townhomes respectively as of March 30th). For additional consideration, we have attached two documents for further review by the Council, City Attorney and Staff as part of the discussion on this item. The first document presents California State Government Code (G.C. 65585 (k), concerning the potential liability by a local governing agency if said agencies policies create an impediment to housing development through the increase placement of burdens for construction. The implementation of an inclusionary policy that requires a set aside of units and/or a mitigation in-lieu fee, could and in most likelihood, will not provide additional housing and may lead to the development community looking to alternative jurisdictions to construct housing. 34360 Gateway Drive • Palm Desert • CA 92211 (7 60) 776-7001 office • (7 60) 77 6-7002 fax www.TheDVBA.org 2021 BOARD di, DIRECTORS PRESIDENT Deborah McGarrey Southern California Gas Company ]6' VICE PRESIDENT Tom Dubose Dubose Design Group, Inc. SECRETARYllREASURER Pedro Rincon Osborne Rincon CPAs JIICE PRESIDENT OF ASSOCIATES Allan Levin Allan Levin & Associates PAST PRESIDENT Fred Bell Nobell Energy Solutions CHIEF EXECUTIJIE OFFICER Gretchen Gutierrez DIRECTORS Brian Benedetti Brian Benedetti Construction Mark Benedetti Dede Callanan North American Title Mario Gonzales GHA Companies Joe Hayes First Bank Todd Hooks Agua Caliente Band of Cahuilla Indians Dave Lippert Lippert Construction. Inc Paul Mahoney PMA Advertising Bruce Maize Rilington Group Russ-Martin Mission Springs Water District Jim Murdock PIRCH Dan Olivier Nethery Mueller Olivier Alan Pace Petra GeoSciences John Powell. Jr. Coachella Valley Water District Phil Smith Sunrise Company Jeff Wattenbarger Wattenbarger Construction The second document is a referenced case study provided by the National Association of Homebuilders, Feb. 2021, stating that any $1000 increase in a median new home sales price further eliminates an additional 153,967 households out of the market nationwide. Roughly 60 percent of all U.S. households are not able to afford a new median priced home. This number will be further exacerbated should inclusionary policies by enacted, with the set aside units or subsidized units have the cost differential added to the market rates units (both new and rental properties). Therefore, that a thorough and very careful consideration and dialogue be undertaken before any adoption of inclusionary policies by the City of Palm Springs is requested. The DVBA appreciates the opportunity to provide input and engagement with this matter and looks forward to continuing the discussion on this item. Copy attached and link attached hereto: https:/Jleginfo.legislature.ca.gov/faces/codes displavSection.xhtml? sectionNum=65585.&lawCode=GOV (Copy attached) and link hereto: https:/Jwww.nahb.org/- /media/NAHB/news-and-economics/docs/housing-economics-plus/special- studies/2021/special-study-nahb-priced-out-estimates-for-2021-february- 2021.pdf? ga=2.93034525.1411435084.1617852535- 1937296336.1617852535 34360 Gateway Drive • Palm Desert • CA 92211 (7 60) 776-7001 office • (7 60) 77 6-7002 fax www.TheDVBA.org (i) -STA_:TE_· 0-F C-Al-lFO-RN-IA~I lti~.!tMml AUTHENTICATED 1 1111r.FA\I D..ECTRONIC LEGAL MATERIAL I State of California GOVERNMENT CODE Section 6S58S 65585. (a) In the preparation of its housing element, each city and county shall consider the guidelines adopted by the department pursuant to Section 50459 of the Health and Safety Code. Those guidelines shall be advisory to each city or county in the preparation of its housing element. (b) ( 1) At least 90 days prior to adoption of its housing element, or at least 60 days prior to the adoption of an amendment to this element, the planning agency shall submit a draft element or draft amendment to the department. (2) The planning agency staff shall collect and compile the public comments regarding the housing element received by the city, county, or city and county, and provide these comments to each member of the legislative body before it adopts the housing element. (3) The department shall review the draft and report its written findings to the planning agency within 90 days of its receipt of the draft in the case of an adoption or within 60 days of its receipt in the case of a draft amendment. ( c) In the preparation of its :findings, the department may consult with any public agency, group, or person. The department shall receive and consider any written comments from any public agency, group, or person regarding the draft or adopted element or amendment under review. ( d) In its written findings, the department shall determine whether the draft element or draft amendment substantially complies with this article. ( e) Prior to the adoption of its draft element or draft amendment; the legislative body shall consider the findings made by the department. If the department's findings are not available within the time limits set by this section, the legislative body may act without them. (f) If the department finds that the draft element or draft amendment does not substantially comply with this article, the legislative body shall take one of the following actions: (1) Change the draft element or draft amendment to substantially comply with this article. (2) Adopt the draft element or draft amendment without changes. The legislative body shall include in its resolution of adoption written findings which explain the reasons the legislative body believes that the draft element or draft amendment substantially complies with this article despite the findings of the department. (g) Promptly following the adoption of its element or amendment, the planning agency shall submit a copy to the department. (h) The department shall, within 90 days, review adopted housing elements or amendments and report its findings to the planning agency. (i) (1) (A) The department shall review any action or failure to act by the city, county, or city and county that it determines is inconsistent with an adopted housing element or Section 65583, including any failure to implement any program actions included in the housing element pursuant to Section 65583. The department shall issue written findings to the city, county, or city and county as to whether the action or failure to act substantially complies with this article, and provide a reasonable time no longer than 30 days for the city, county, or city and county to respond to the findings before taking any other action authorized by this section, including the action authorized by subparagraph (B). (B) If the department finds that the action or failure to act by the city, county, or city and county does not substantially comply with this article, and if it has issued findings pursuant to this section that an amendment to the housing element substantially complies with this article, the department may revoke its findings until it determines that the city, county, or city and county has come into compliance with this article. (2) The department may consult with any local government, public agency, group, or person, and shall receive and consider any written comments from any public agency, group, or person, regarding the action or failure to act by the city, county, or city and county described in paragraph ( 1 ), in determining whether the housing element substantially complies with this article. G) The department shall notify the city, county, or city and county and may notify the office of the Attorney General that the city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to this element, or any action or failure to act described in subdivision (i), does not substantially comply with this article or.that any local government has taken an action in violation of the following: (1) Housing Accountability Act (Section 65589.5 of the Government Code). (2) Section 65863 of the Government Code. (3) Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code. ( 4) Section 65008 of the Government Code. (k) Commencing July 1, 2019, prior to the Attorney General bringing any suit for a violation of the provisions identified in subdivision G) related to housing element compliance and seeking remedies available pursuant to this subdivision, the department shall offer the jurisdiction the opportunity for two meetings in person or via telephone to discuss the violation, and shall provide the jurisdiction written findings regarding the violation. This paragraph does not affect any action filed prior to the effective date of this section. The requirements set forth in this subdivision do not apply to any suits brought for a violation or violations of paragraphs (1), (3), and (4) of subdivision G). ( l) In any action or special proceeding brought by the Attorney General relating to housing element compliance pursuant to a notice or referral under subdivision G), the Attorney General may request, upon a finding of the court that the housing element does not substantially comply with the requirements of this article pursuant to this section, that the court issue an order or judgment directing the jurisdiction to bring its housing element into substantial compliance with the requirements of this article. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If a court determines that the housing element of the jurisdiction substantially complies with this article, it shall have the same force and effect, for purposes of eligibility for any financial assistance that requires a housing element in substantial compliance and for purposes of any incentives provided under Section 65589.9, as a determination by the department that the housing element substantially complies with this article. ( 1) If the jurisdiction has not complied with the order or judgment after twelve months, the court shall conduct a status conference. Following the status conference, upon a determination that the jurisdiction failed to comply with the order or judgment compelling substantial compliance with the requirements of this article, the court shall impose fines on the jurisdiction, which shall be deposited into the Building Homes and Jobs Trust Fund. Any fine levied pursuant to this paragraph shall be in a minimum amount of ten thousand dollars ($10,000) per month, but shall not exceed one hundred thousand dollars ($100,000) per month, except as provided in paragraphs (2) and (3). In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to corre~t the jurisdiction's failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution. (2) If the jurisdiction has not complied with the order or judgment after three months following the imposition of fees described in paragraph (1 ), the court shall conduct a status conference. Following the status conference, if the court finds that the fees imposed pursuant to paragraph ( 1) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of three. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdiction's failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution. (3) If the jurisdiction has not complied with the order or judgment six months following the imposition of fees described in paragraph (1 ), the court shall conduct a status conference. Upon a determination that the jurisdiction failed to comply with the order or judgment, the court may impose the following: (A) If the court finds that the fees imposed pursuant to paragraphs (1) and (2) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of six. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdiction's failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution. (B) The court may order remedies available pursuant to Section 564 of the Code of Civil Procedure, under which the agent of the court may take all governmental actions necessary to bring the jurisdiction's housing element into substantial compliance pursuant to this article in order to remedy identified deficiencies. The court shall determine whether the housing element of the jurisdiction substantially complies with this article and, once the court makes that determination, it shall have the same force and effect, for all purposes, as the department's determination that the housing element substantially complies with this article. An agent appointed pursuant to this paragraph shall have expertise in planning in California. ( 4) This subdivision does not limit a court's discretion to apply any and all remedies in an action or special proceeding for a violation of any law identified in subdivision G). (m) In determining the application of the remedies available under subdivision (l), the court shall consider whether there are any mitigating circumstances delaying the jurisdiction from coming into compliance with state housing law. The court may consider whether a city, county, or city and county is making a good faith effort to come into substantial compliance or is facing substantial undue hardships. (n) The office of the Attorney General may seek all remedies available under law including those set forth in this section. (Amended by Stats. 2020, Ch. 370, Sec. 174. (SB 1371) Effective January 1, 2021.) NAHB Priced-Out Estimates for 2021 February 2021 Special Study for Housing Economics Na Zhao, Ph.D. Economics and Housing Policy National Association of Home Builders This article announces NAHB' s "priced out estimates" for 2021, showing how higher prices and interest rates affect housing affordability. The 2021 US estimates indicate that a $1,000 increase in the median new home price ($346,757 1) would price 153,967 households out of the market. As a benchmark, 75.1 million households (roughly 60 percent of all U.S. households) are not able to afford a new median priced new home. A $1,000 home price increase would make 153,967 more households disqualify for the new home mortgage. Other NAHB estimates for 2021 show that 25 basis points added to the mortgage rate at 30-year fixed rate of 2.8% would price out around 1.29 million households. In addition to the national numbers, NAHB once again is providing priced out estimates for individual states and more than 300 metropolitan areas. The Priced-Out Methodology and Data NAHB priced-out model uses the ability to qualify a mortgage to measure housing affordability, because most home buyers finance their new home purchase with conventional loans, and because convenient underwriting standards for these loans exist. The standard NAHB adopts for its priced-out estimates is that the sum of the mortgage payment (including the principal amount, loan interest, property tax, homeowners' property and private mortgage insurance premiums (PIT!), is no more than 28 percent of monthly gross household income. As a result, the number of households that qualify for mortgages for a certain priced home depends on the household income distribution in an area and the mortgage interest rate at that time. The most recent detailed household income distributions for all states and metro areas are 1 The 2021 US median new home price is estimated by projecting the 2020 median new home price using the NAHB forecast of the Case-Shiller Home Price Index. from the 2019 American Community Survey (ACS). NAHB adjusts the income distributions to reflect the income and population changes that may happen from 2019 to 2021. The income distribution is adjusted for inflation using the 2020 median family income at the state2 and metro 3 levels, and then extrapolated it into 2021. The number of households in 2021 is projected by the growth rate of households from 2018 to 2019. Other assumptions of the priced-out calculation include a 10% down payment, and a 30-year fixed rate mortgage at an interest rate of 2.8% with zero points. For a loan with this down payment, private mortgage insurance is required by lenders and thus included as part of PITI. The typical private mortgage insurance annual premium is 73 basis points 4, based on the standard assumption of national median credit score of738 5 and 10% down payment and 30-year fixed mortgage rate. Effective local property tax rates are calculated using data from the 2019 American Community Survey (ACS) summary files. Homeowner's insurance rates are constructed from the 2019 ACS Public Use Microdata Sample (PUMS)6• For the US as a whole, the property tax is $10.7 per $1,000 of property value and the homeowner insurance is $3.6 per $1,000 property value. U.S. Priced-Out Estimates Under these assumptions, 50.3 million (about 40%) of the 125.4 million US households could afford to buy a new median priced home at $346,757 in 2021. A $1,000 home price increase thus will price 153,967 households out of the market for this home. These are the households that can qualify for a mortgage before a $1,000 increase but not afterwards, as shown in Table 1 below. 2 The state median family income is published by Department of Housing and Urban Development (HUD). 3 The MSA median family income is calculated by HUD and published by Federal Financial Institutions Examination Council (FFIEC). 4 Private mortgage insurance premium (PMI) is obtained from the PMI Cost Calculator( bttps://www.hsb.com/calc-pmionly.html) 5 Median credit score information is shown in the article "Four ways today's high home prices affect the larger economy" October 2018 Urban Institute https://www .urban.org/urban-wire/four-ways-todays-higb-home-prices-affect- larger-economy 6 Producing metro level estimates from the ACS PUMS involves aggregating Public Use Microdata Area (PUMA) level data according to the latest definitions of metropolitan areas. Due to complexity of these procedures and since metro level insurance rates tend to remain stable over time, NAHB revises these estimates only periodically. T8ble 1. US Households Priced Out of the Market by lncreeses in House Prices. 2021 Monthly Tax~ Minimum Households Hou::eholds Mortgage Hou~ Mortgage and Income That Can That Cannot Area Rate Price Pavment ln$urance Needed Afford Hou~ Afford House United Slates 2.80% $346.757 $1.407 $414 $78.036 50.303.399 75.105.557 United Slates 2.80% $347.757 $1.411 $415 $78261 50.149.432 75.259.524 Difference $1.000 $4 $1 $225 -153.967 153.967 Calculations ~ume a 10% down payment and a 73 base point fee for private mortgage inoorance. A Hou--vehold Oualifi~ for a Mortgage if Mortgage Payments.Tax~. and l~urance are 28% of Income US Household Income Distribution for 2021 Income Range: Households Cumulative $0 to $9.404 7.269.983 7.269.983 $9.405 to $14.107 5.045.432 12.315.416 $14.108 to $18.809 4.941.364 17.256.779 $18.810 to $23.512 5.435.103 22.691.882 $23.513 to $28.215 5.090.064 27.781.946 S28.216 to $32,917 5.433.854 33.215.800 $32,918 to $37.620 5.038.087 38.253.887 $37.621 to $42.323 5.222.651 43.476.538 $42.324 to $47.025 4.718.720 48.195.258 S47.026 to $56,430 9.273.507 57.468.765 $56.431 to $70.538 12.507.853 69.976.618 S70.539 to $94.051 16.086.781 86.063,399 $94.052 to $117,565 11.897.400 97.960.799 $117.566 to S141.078 7.815.163 105.775.961 $141.079 to $188.104 8.989.572 114.765.533 $188.105 to More 10.643.422 125.408.956 The U.S. housing affordability pyramid represents the number of households that could only afford homes no more than certain price. Based on conventional assumptions and underwriting standards, the minimum income required to purchase a $100,000 home is $22,505. In 2021, about 21.1 million households in the U.S. are estimated to have incomes no more than that threshold and, therefore, can only afford to buy homes priced no more than $100,000. These 21.1 million households form the bottom step of the pyramid (Figure 1 ). Of the remaining 101. 7 · million who can afford a home priced at $100,000, 19 .0 million can only afford to pay a top price of somewhere between $100,000 and $175,000 (the second step on the pyramid). Each step represents a maximum affordable price range for fewer and fewer households. Housing affordability is a great concern for households with annual income at the lower end. Figure 1. US Households (In MIiiions) by Highest Priced Home They Can Afford Based on Income: 2021 >1.55 mllllon 1.05-1.55 million 850K-1.05 mllllan G) -~ 0. G) Cl) :::, 0 J: 700-850K 600-700K 500-600K 405-SOOK 325-405K 250-325K 175-250K 100-175K 0-100K Source: Calculations by the National Association of Homebuilders Housing Policy Department, based on income data from the 2019 American Community Survey Public Use Mlcrodata Sample File, U.S. Census Bureau State and Local Estimates National Association of Hom• Builders The number of priced out households varies across both states and metropolitan areas, largely affected by the sizes of local population and the affordability of new homes. The 2021 priced-out estimates for all states and the District of Columbia are shown in Table 2, which presents the projected 2021 median new home price es~ates and the amount of income needed to qualify the mortgage, the number of households who can and who cannot afford the new homes, and the number ofhouseholds could be priced out if price goes up by $1,000. Among all the states, Texas registered the largest number of households priced ou~ of the market by a $1,000 increase in the median-priced home in the state (14,309), followed by California (12,361), and Florida (10,215), largely because these three states are the top three populous states. Households in Texas, where half of all new homes are sold for less than $336,724, need an annual income of at least $85,998 to qualify for a new home mortgage. Therefore, around 6.8 million households (65.4% of all households) in Texas don't earn enough income to qualify for new home loan to begin with. In contrast, households in Delaware only need to have household income of$39,707 to qualify new home loans. Only 31 % of households in Delaware (around 272,000 households) cannot afford new homes at the median price of$193,899 in 2021. Table 3 shows the 2021 priced-out estimates for 381 metropolitan statistical areas. The metropolitan area with the largest priced out effect, in terms of absolute numbers, is New York- Newark-Jersey City, NY-NJ-PA, where 6,756 households will be disqualified for a new median- priced home if price goes up by $1,000. Chicago-Naperville-Elgin, IL-IN-WI metro area register the second largest number of priced-out households (5,162), followed by Houston-The Woodlands-Sugar Land, TX metro area (4,533). Different impacts of adding $1,000 to a new home price are largely due to different sizes of metro population and the affordability of new homes to begin with. The largest priced-out effect in New York metro area, where the median priced new homes are only affordability to 26.1 % of households, is largely because of its largest population size among all metro areas (6.8 million households). Compared to New York metro, the populations in Chicago and Houston metro areas are much smaller. Chicago metro area only has half of New York metro population and Houston metro area has 40%. However, the median priced homes in Chicago or Houston metro areas are relatively more affordable to begin with. Around 44% of households in Chicago and 51.0% households in Houston metro area are capable of buying new median-priced homes there. Interest Rates NAHB 2021 priced-out estimates also present how interest rates affect the number of households would be priced out of the new home market. If mortgage interest rate goes up, the monthly mortgage payments will increase as well and therefore higher household income thresholds to qualify a mortgage loan. Table 4 shows the number of households priced out of the market for a new median priced home at $346,757 by each 25 basis-point increase in interest rate from 1% to 9%. When interest rates go up from 1.75% to 2.00%, around 1.2 million households could no longer afford buying median-priced new homes. An increase from 2.75% to 3.00% could price approximately 1.3 million households out of the market. However, about 813,000 households would be squeezed out of the market if interest rate goes up to 9% from 8.75%. This diminishing effect happen because only a few households at the thinner end of household income distribution will be affected. On the contrary, when interest rates are relatively low, 25 basis-point increase would affect a larger number of households at the thicker part of income distribution. Table 4. U.S. Households Priced Out of the Market by an Increase in Interest Rates. 2021 Mortgage . Medi•11New Monthly .-•:Taxes an~-<Minimum .. :.·".Households ::;a.nge1n.\:/'~niulative'. Rate : . -HousePnce · ~rtg~• .fnsuran~ . -_Jn~~ . · :.ThjtCarj . .\. -·'~seh~s··'·qnmge ,, 1.00% 1.25% 1.50% 1.75~ 2.00% . ·2.25% . . · 2.50% · . 2.75% 3.00% 3.2511'. 3.50'%. 3.75':r:. 4.00% .4.25% 4.SQ% 4.75%· · 5.00'!4 5.25~ 5.50% 5.75% 6.oat. ·&.~% 6.50% 6.75% 7.00% 7.25'%. 7.50~ 7.75% .8.0Q')' 8.25% 8.50% ·us% 9.00'!4 · Payment ·_·.·. :· · ·Needed .' ... ··AffordHouse·· ··· ,· :· .. • .. ·-< ,. -. : . ' . ... .. .·-· $346.757 . $1.112 $41{° $65,402 59.986.612 S346.757 $1.150 $414 $67.055 58.521.448 -1.465.164 $346,757 $1,190 $414 $68.741 57.026,546 -1.494.902 S.346.757 $1,230 $414 $70.461 55,502.192 -1,524.354 $346.757 . · · Sl.271 \ . ' . :.S414 :· $72.213 : :> .·54a7,444 . -· · -1.214.748 . ,,;.s.699.l ' -=~~. ;·!~:~~ .: ~!:·· .. ': -~-.::~::!·--~-·.:~::~:!~!>:.>;i~-~:~r:-~·:-:!:~::~85 ·. S34U57 SU98 ._... · kt~. .. . : ·s77.m . -,.. ·50.558.~~ .:·-,~~~~->· ~-~~~7~4 $346,757 $1,442 $414 $79.542 49,273.014 -1.285.884 -10.713.598 $346.757 St.486 $414 $81.452 47.966,166 -1.306.848 -12.020.446 $346,757 $1,532 $414 $83.392 46.638.709 -1.327.457 -13.347.903 $346,757 Sl.578 $414 SSS.362 45.291.016 -1.347,693 -14,695.596 · $346)57 . ·. $1.62~ ·. . $414 . $87.361 · 43,923,470 : .'. --U67.546 · . -16.083, 142 $346,757 ·. : ~1.6~~-: . $414 . . . ·.$89.388 : 42.536,469 · ... · ' ·,;1;387,0(fr . :.: ~1t450j43 $346.757 : $1.719 <. ~14 ··. . . ·. .$91.4-44 > ... 41.130,420 ·,. : ··.:i.406.04s°-.. ~18.856.192 ·. ~.757 · s1.76a · •$41~ s93.s26 · .. _.:'39~70S.742 _.·.:·.· .. ·.1.-12•.61a · ··-20280.s '· $346.757 $1.817 $414 $95.635 38,544.821 -1.160,921 -21.441,791 $346.757 s1.s61 S414 S97.no 37,464.557 -1.080.264 -22.s22.oss S346.757 su11 S414 S99.93o 36.371.4n -1.093.080 -2J.&1s. 135 $346.757 $1.968 $414 $102.115 35.265.908 -1.105.569 -24.720.704 ~-?57 $2.020 $:41~. :$104.324 34;148.181 •. , ~1.117.72i : ·-25~838.~1 $346.757 .$2.012 · -:~14.: $10&.SS&,.. 33.01a~s30 .. -: .:1.129,ssf : __ ~,~a.96i. ·· . -S346.7:5J ·. ·. · .. S2.·12S _ .. • ~14 ·$10$.&12-. ·: .3im.sag .: .. .-: ·~1.141.Mi: ··-28.1 _0&,023 $346,757 $2.178 --$414 · ·-$1'11~089 _:·:. ;_ 30)25~~ . c.~1~1~J9-T ' .. .:~29~1 ... $346.757 $2.231 $414 $113.387 29,562.374 -1 .163.018 -30.424.238 $346,757 $2.286 .$414 $115.706 28.388.867 -1.173.507 -31.597,745 $346,757 $2.340 $414 $118.046 27,288.565 -1 .100.302 -32.698.047 $346.757 $2.395 $414 $120,404 26.504.583 -783.982 -33.482,029 ··S34U57 .. $2.~1 . _.$41~-.. , ;$1~.782 ·: -25.7J4.~ :·.'< ,.· :-~.#~\_;_._::;34~72.253 $346.7.57 · ,_$2,~7 "$414 , -· ·$125J78 : · · 24,918.103 ' ::, ::_ '· .. ·-796~256 . •. : .. 35.068. ·.$346.757 lt563 . $414 $127;591 · 24.116~025 . ·... . :.so2.07lJ • ·,··~.870,58 :_$346.7?7 .· $2.620.. $41 ....... •\ $130.021 ·. 23,308~331 ':'_:,:, .. ·.·-807.~: ·-·~~67&!~1 S346.757 s2.sn S-414 $132.467 22.495.223 -a13.1os -37.491.389 Table 2 Households Priced Out of the Market by a $1,000 Price Increase, 2021 State Households Median Income Who Can Who Can't New Home Needed to Afford Median Afford Median Price ~ualify All Price Price Priced Out United States 346,757 78,036 125,408,956 50,303,399 75,105,557 153,967 Alabama 302,590 63,256 1,985,288 806,251 1,179,037 2,820 Alaska 521,619 120,117 247,560 71,260 176,300 234 Arizona 416,075 85,841 2,786,370 907,196 1,879,174 3,260 Arkansas 335,438 73,068 1,178,386 355,655 822,731 1,232 California 526,751 108,539 13,331,066 4,338,131 8,992,935 12,361 Colorado 483,393 98,337 2,356,529 791,797 1,564,732 2,310 Connecticut 589,795 156,214 1,375,318 283,917 1,091,401 718 Delaware 192,899 39,503 393,979 272,689 121,290 717 District of Columbia 614,551 122,888 299,934 85,531 214,403 169 Florida 369,083 82,394 8,102,370 2,512,502 5,589,868 10,215 Georgia 311,073 68,922 3,954,075 1,655,293 2,298,782 6,805 Hawaii 672,314 128,045 485,941 140,949 344,992 302 Idaho 348,619 72,046 688,185 247,328 440,857 909 Illinois 323,569 85,870 4,868,291 1,801,898 3,066,393 7,205 Indiana 317,395 7QA89 2,594,959 1,003,721 1,591,238 4,304 Iowa 331,431 82,032 1,326,807 505,664 821,143 1,777 Kansas 341,653 84,836 1,148,235 371,251 776,984 1,655 Kentucky 328,930 73,344 1,781,216 604,961 1,176,255 2,025 Louisiana 318,611 69,702 1,748,814 644,804 1,104,010 2,336 Maine 437,279 101,930 580,298 144,316 435,982 507 Maryland 324,240 72,145 2,248,590 1,285,864 962,726 3,086 Massachusetts 606,866 136,965 2,704,251 722,176 1,982,075 2,093 Michigan 314,830 75,992 3,994,825 1,470,512 2,524,313 5,297 Minnesota 373,203 85,700 2,279,885 949,205 1,330,680 3,155 Mississippi 270,237 61,596 1,083,618 423,425 660,193 1,878 Missouri 332,777 76,009 2,506,083 876,573 1,629,510 3,129 Montana 327,771 71,137 450,382 182,271 268,111 665 Nebraska 288,401 73,539 783,491 333,201 450,290 1,500 Nevada 341,805 68,785 1,171,555 489,995 681,560 1,449 New Hampshire 505,421 130,718 562,353 137,301 425,052 438 New Jersey 317,751 86,123 3,360,906 1,626,200 1,734,706 4,657 New Mexico 380,314 81,819 792,076 244,681 547,395 831 NewYork 482,631 117,764 7,609,008 1,965,082 5,643,926 5,389 North Carolina 325,067 70,452 4,117,033 1,576,555 2,540,478 6,424 North Dakota 335,249 76,656 332,011 139,289 192,722 401 Ohio 342,272 83,423 4,821,421 1,587,503 3,233,918 6,265 Oklahoma 336,556 78,627 1,515,029 452,076 1,062,953 1,936 Oregon 479,355 102,710 1,668,277 415,802 1,252,475 1,578 Pennsylvania 372.487 89,959 5,217,271 1,788,911 3,428,360 6,762 Rhode Island 445,548 108,867 408,379 121,793 286,586 417 South Carolina 347,229 73,119 2,075,366 691,574 1,383,792 2,486 South Dakota 298,965 70,833 371,109 159,775 211,334 631 Tennessee 324,974 69,247 2,761,019 995,986 1,765,033 3,256 Texas 336,274 85,998 10,416,718 3,636,103 6,780,615 14,309 Utah 419,078 84,875 1,075,670 428,550 647,120 1,496 Vermont 476,377 120,420 265,577 42,318 223,259 186 Virginia 316,979 67,522 3,224,745 1,735,034 1,489,711 4,510 Washington 522,023 112,295 3,007,698 839,338 2,168,360 2,524 West Virginia 255,239 54,260 715,292 310,841 404,451 1,305 Wisconsin 342,422 84,722 2,416,221 · 837,899 1,578,322 3,540 Wyoming 532,238 110,784 238,988 55,069 183,919 205 * Based on 2.8% of.30-year mortgage interest rate Table 3 Households Priced Out of the Market by a $1,000 Price Increase, 2021 Households Income WhoCan Who Can't Metro Area Median New Needed to Afford Afford Priced Home Price Qualify All Median Price Median Price Out Abilene, TX 280,314 69,681 62,198 19,496 42,702 94 Akron,OH 428,137 106,296 282,873 71,020 211,853 322 Albany,GA 171,539 41,557 49,947 24,191 25,756 107 Albany-Lebanon, OR 377,809 84,642 51,348 8,390 42,958 76 Albany-Schenectady-Troy, NY 378,467 98,713 380,670 155,942 224,728 466 Albuquerque, NM 330,836 73,878 346,233 135,616 210,617 531 Alexandria, LA 322,334 70,572 56,531 18,923 37,608 90 Allentown-Bethlehem-Easton, PA-NJ 311,411 80,008 325,931 127,713 198,218 541 Altoona,PA 300,327 69,359 S5,415 16,732 38,683 76 Amarillo, TX 328,975 85,821 98,782 28,637 70,145 123 Ames,IA 276,679 67,714 91,264 34,130 57,134 141 Anchorage, AK. 489,889 114,238 138,840 40,018 98,822 126 Ann Arbor, Ml 290,630 70,311 138,936 69,557 69,379 194 Anniston-Oxford, AL 138,884 29,836 45,389 30,581 14,808 123 Appleton, WI 314,364 78,228 95,192 40,856 54,336 144 Asheville, NC 359,862 74,411 196,613 69,854 126,759 236 Athens-Clarke County, GA 266,058 59,167 88,354 29,925 58,429 109 Atlanta-Sandy Springs-Alpharetta, GA 286,196 63,212 2,297,150 1,195,652 1,101,498 4,082 Atlantic City-Hammonton, NJ 392,849 115,567 112,748 38,459 74,289 128 Auburn-Opelika, AL 336,989 70,540 76,031 24,961 51,070 70 Augusta-Richmond County, GA-SC 254,950 55,498 207,757 102,755 105,002 362 Austin-Round Rock-Georgetown, TX 325,928 83,054 885,466 422,626 462,840 1,263 Bakersfield, CA 377,757 83,099 272,331 72,626 199,705 288 Baltimore-Columbia-Towson, MD 265,533 59,480 1,080,466 690,050 390,416 1,513 Bangor, ME 308,332 73,959 69,025 15,701 53,324 105 Barnstable Town, MA 805,064 174,020 119,662 12,373 107,289 59 Baton Rouge, LA 285,459 62,077 313,460 136,510 176,950 482 Battle Creek, Ml 235,380 58,568 53,653 19,860 33,793 100 BayCity,MI 296,492 87,920 45,735 7,386 38,349 57 Beaumont-Port Arthur, TX 283,812 74,324 136,329 40,775 95,554 216 Beckley, WV 183,790 39,743 50,102 24,816 25,286 121 Bellingham, WA 428,692 89,724 92,324 32,197 60,127 126 Bend,OR 409,281 84,828 70,Jl7 19,923 50,194 79 Billings, MT 271,825 60,120 92,469 47,145 45,324 1S7 Binghamton, NY 268,855 78,118 106,822 46,940 59,882 183 Birmingham-Hoover, AL 351,892 74,004 414,683 148,534 266,149 433 Bismarck, ND 312,215 70,350 45,249 22,719 22,530 63 Blacksburg-Christiansburg, VA 256,507 54,238 51,204 25,431 25,773 102 Bloomington, IL 194,274 54,335 51,002 30,800 20,202 94 Bloomington, IN 284,270 62,496 56,047 19,704 36,343 80 Bloomsburg-Berwick, PA 341,901 80,088 32,320 10,451 21,869 45 Boise City, ID 335,845 69,536 291,082 124,982 166,100 397 Boston-Cambridge-Newton, MA-NH 501,740 113,499 1,871,796 777,437 1,094,359 1,711 Boulder,CO 527,163 105,666 139,271 59,590 79,681 109 Bowling Green, KY 292,951 64,287 64,160 25,130 39,030 95 Bremerton-Silverdale-Port Orchard, WA 482,Sl I 103,296 111,881 39,355 72,526 116 Bridgeport-Stamford-Norwalk. CT 1,000,580 248,950 330,626 31,963 298,663 185 Brownsville-Harlingen, TX 153,276 41,564 138,788 68,745 70,043 289 Brunswick, GA 379,978 83,855 48,672 17,430 31,242 52 Buffalo-Cheektowaga, NY 422,281 116,023 507,133 98,110 409,023 523 Burlington, NC 221,476 47,929 63,555 32,034 31,521 128 Burlington-South Burlington, VT 449,661 110,692 95,141 20,729 74,412 86 California-Lexington Park, MD 360,403 79,778 38,543 21,722 16,821 47 Canton-Massillon, OH 266,824 63,756 169,983 75,133 94,850 330 Cape Coral-Fort Myers, FL 274,168 62,021 298,562 126,836 171,726 581 Cape Girardeau, MO-IL 161,214 35,867 47,245 29,269 17,976 87 Table 3 Households Priced Out of the Market by a Sl,000 Price Increase, 2021 Households Income Who Can Who Can't Metro Area Median New Needed to Afford Afford Priced Home Price Qualify All Median Price Median Price Out Carbondale-Marion, IL 150,005 39,394 68,855 35,751 33,104 189 Carson City, NV 368,912 71,783 21,931 10,014 11,917 26 Casper, WY 311,320 65,345 34,713 18,295 16,418 49 Cedar Rapids. IA 189,279 47,418 119,018 79,465 39,553 273 Chambersburg-Waynesboro, PA 277,000 63,965 61,121 31,283 29,838 95 Champaign-Urbana, IL 347,602 93,510 75,020 20,096 54,924 90 Charleston, WV 116,795 25,600 159,290 115,017 44,273 393 Charleston-North Charleston, SC 340,389 71,281 324,020 141,070 182,950 422 Charlotte-Concord-Gastonia, NC-SC 330,927 71,107 1,027,645 388,081 639,564 1,429 Charlottesville, VA 356,666 75,244 84,367 31,413 52,954 132 Chattanooga, TN-GA 272,014 59,400 226,629 120,954 105,675 361 Cheyenne, WY 271,839 57,240 46,188 22,759 23,429 109 Chicago-Naperville-Elgin, IL-IN-WI 303,408 80,104 3,541,321 1,555,150 1,986,171 5,162 Chico.CA 341,847 71,953 59,597 17,788 41,809 91 Cincinnati, OH-KY-IN 275,742 65,766 911,773 397,209 514,564 1,316 Clarksville, TN-KY 172,381 38,337 139,975 92,194 47,781 307 Cleveland, TN 232,656 50,019 47,254 23,040 24,214 85 Cleveland-Elyria, OH 319,225 82,190 885,951 296,333 589,618 1,170 Coeur d'Alene, ID 371,175 75,285 65,944 22,043 43,901 82 College Station-Bryan, TX 262,331 66,337 94,561 29,496 65,065 176 Colorado Springs, CO · 518,808 106,324 284,131 71,173 212,958 291 Columbia, MO 318,600 72,204 98,641 40,025 58,616 143 Columbia, SC 278,496 59,800 323,891 142,056 181,835 418 Columbus, GA-AL 250,264 56,472 130,667 54,69) 75,976 231 Columbus, IN 251,344 55,44S 27,578 15,561 12,017 44 Columbus, OH 313,433 76,506 848,527 364,187 484,340 1,093 Corpus Christi, TX 349,161 93.410 137,168 31,133 106,035 182 Corvallis, OR 420,610 92,314 41,391 8,157 33,234 43 Crestview-Fort Walton Beach-Destin, FL 495,632 107,767 91,941 21,174 70,767 79 Cumberland, MD-WV 291,730 64,605 33,671 11,335 22,336 73 Dallas-Fort Worth-Arlington, TX 351,S5S 92,751 2,657,437 1,042,723 1,614,714 3,677 Dalton, GA 188,423 41,192 48,788 23,472 25,316 100 Danville, IL 158,475 42,694 33,228 16,591 16,637 64 Daphne-Fairhope-Foley, AL 264,995 54,319 80,022 44,969 35,053 189 Davenport-Moline-Rock Island, IA-IL 223,101 58,661 158,482 78,063 80,419 338 Decatur,AL 237,984 50,393 62,329 33,071 29,258 122 Decatur, IL 255,623 67,698 39,319 12,805 26,514 62 Deltona-Daytona Beach-Ormond Beach, FL 372,461 82,896 272,558 78,031 194,527 330 Denver-Aurora-Lakewood, CO 400,002 82,093 1,195,733 560,417 635,316 1,486 Des Moines-West Des Moines, IA 319,180 81,239 337,650 134,638 203,012 511 Detroit-Warren-Dearborn, MI 308,391 74,889 1,740,631 686,400 1,054,231 2,344 Dothan,AL 296,532 62,016 59,625 22,331 37,294 86 Dover,DE 233,835 47,360 68,388 39,709 28,679 142 Dubuque, IA 363,692 89,045 38,035 14,459 23,576 49 Duluth, MN-WI 233,022 54,105 141,832 66,452 75,380 307 Durham-Chapel Hill, NC 287,481 63,341 326,547 156,590 169,957 444 East Stroudsburg, PA 380,358 105,127 58,678 17,634 41,044 84 Eau Claire, WI 259,964 63,063 67,700 30,309 37,391 138 El Centro, CA 294,524 64,643 64,128 23,452 40,676 89 Eliubethtown-Fort Knox, KY 254,407 56,586 61,692 30,138 31,554 126 Elkhart-Goshen, IN 277,937 61,514 59,377 22,518 36,859 95 Elmira,NY 269,078 77,130 31,880 13,557 18,323 70 El Paso, TX 316,757 88,130 268,178 57,644 210,534 329 Enid,OK 336,043 80,679 25,115 5,003 20,112 26 Erie, PA 354,370 89,871 110,793 34,138 76,655 129 Eugene-Springfield, OR 373,348 80,998 154,947 47,007 107,940 194 Table 3 Households Priced Out of the Market by a Sl~OOO Price Increase, 2021 Households Income Who Can Who Can't Metro Area Median New Needed to Afford Afford Priced Home Price Qualify All Median Price Median Price Out Evansville, IN-KY 329,086 74,241 132,592 49,595 82,997 180 Fairbanks, AK 547,764 128,639 33,967 11,056 22,911 26 Fargo, ND-MN 286,173 67,105 114,384 52,371 62,013 200 Fannington, NM 317,585 . 67,169 40,358 16,354 24,004 81 Fayetteville, NC 245,210 56,805 338,657 133,958 204,699 605 Fayetteville-Springdale-Rogers, AR 345,765 74,771 180,558 59,769 120,789 239 Flagstaff, AZ 355,042 71,370 52,619 21,216 31,403 66 Flint,MI 259,743 65,344 168,804 59,987 108,817 351 Florence, SC 176,386 37,127 82,055 46,278 35,777 158 Florence-Muscle Shoals, AL 157,653 33,474 62,688 42,170 20,518 141 Fond du Lac, WI 313,976 78,269 45,983 14,379 31,604 83 Fort Collins, CO 384,507 77,989 162,303 77,546 84,757 191 Fort Smith, AR-OK 240,932 52,720 80,274 29,743 50,531 201 Fort Wayne, IN 282,402 63,318 139,152 56,797 82,355 264 Fresno,CA 478,209 102,315 329,291 65,836 263,455 319 Gadsden,AL 218,498 46,344 43,069 25,408 17,661 53 Gainesville, FL 312,878 71,008 184,073 51,030 133,043 206 Gainesville, GA 277,042 60,361 66,914 34,054 32,860 108 Gettysburg, PA 422,994 103,131 37,026 12,345 24,681 56 Glens Falls, NY 344,591 87,830 57,233 17,998 39,235 86 Goldsboro, NC 230,563 53,477 47,426 19,897 27,529 108 Grand Forks, ND-MN 304,134 70,420 48,200 22,184 26,016 66 Grand Island, NE 267,337 67,294 26,631 11,441 15,190 S9 Grand Junction, CO 261,713 51,903 67,394 31,748 35,646 144 Grand Rapids-Kentwood, MI 287,185 66,971 395,892 162,618 233,274 631 Grants Pass, OR 377,454 77,006 31,773 10,197 21,576 37 Great Falls, MT 382,665 87,020 27,950 7,672 20,278 33 Greeley, CO 373,159 76,290 118,355 51,574 66,781 166 Green Bay, WI 316,922 77,183 138,280 56,901 81,379 171 Greensboro-High Point, NC 305,319 67,585 300,388 126,672 173,716 423 Greenville, NC 256,647 58,416 74,319 35,574 38,745 177 Greenville-Anderson, SC 308,956 64,311 359,315 152,265 207,050 574 Gulfport-Biloxi, MS 233,471 53,710 167,512 71,882 95,630 357 Hagerstown-Martinsburg, MD-WV 258,349 55,750 128,903 75,071 53,832 225 Hammond,LA 258,657 55,139 44,824 16,348 28,476 70 Hanford-Corcoran, CA 398,578 85,198 46,903 14,602 32,301 49 Harrisburg-Carlisle, PA 296,711 71,157 235,921 111,946 123,975 436 Harrisonburg, VA 375,137 77,919 45,369 17,240 28,129 56 Hartford-East Hartford-Middletown, CT 331,278 89,886 489,546 196,173 293,373 724 Hattiesburg, MS 253,098 58,216 70,822 32,254 38,568 102 Hickory-Lenoir-Morganton, NC 282,630 60,438 148,684 59,065 89,619 274 Hilton Head Island-Bluffion, SC 434,019 91,296 84,200 22,649 61,551 82 Hinesville, GA 295,610 68,756 27,492 10,259 17,233 62 Homosassa Springs, FL 263,673 58,452 68,984 22,861 46,123 155 Hot Springs, AR 336,279 72,281 44,549 19,192 25,357 68 Houma-Thibodaux, LA 321,284 69,512 83,716 37,342 46,374 96 Houston-The Woodlands-Sugar Land, TX 246,856 6S,027 2,598,437 1,328,500 1,269,937 4,533 Huntington-Ashland, WV-KY-OH 215,718 47,600 136,523 67,184 69,339 256 Huntsville, AL 248,654 51,809 193,714 118,484 75,230 312 Idaho Falls, ID 272,557 57,263 52,786 26,307 26,479 89 lndianapolis-Cannel-Anderson, IN 310,138 69,293 815,072 347,358 467,714 1,290 Iowa City, IA 312,796 77,407 71,145 33,564 37,581 93 Ithaca, NY 319,568 89,976 40,466 11,748 28,718 45 Jackson,Ml 215,514 52,476 59,081 24,481 34,600 121 Jackson,MS 318,754 72,297 237,319 76,502 160,817 257 Jackson, TN 255,030 57,651 136,434 53,671 82,763 259 Table 3 Households Priced Out of the Market by a $1,000 Price Increase, 2021 Households Income Who Can Who Can't Metro Area Median New Needed to Afford Afford Priced Home Price Qualify AU Median Price Median Price Out Jacksonville, FL 271,535 60,178 602,718 309,382 293,336 1,043 Jacksonville, NC 186,955 42,377 57,605 37,645 19,960 153 Janesville-Beloit, WI 251,741 64,807 66,706 28.437 38,269 158 Jefferson City. MO 251,192 56,067 65,451 32,422 33,035 142 Johnson City, TN 237,244 50,538 96,662 31,579 65,083 181 Johnstown. PA 312,982 76,703 56,504 14,054 42,450 85 Jonesboro, AR 206,782 45.486 49,256 22,684 26,572 94 Joplin,MO 169,695 38,250 59,866 40,595 19,271 164 Kahului-Wailuku-Lahaina, HI 745,391 139,907 58,736 15,937 42,799 48 Kalamazoo-Portage, MI 279,560 69,173 62,277 28,797 33,480 86 Kankakee, IL 265,075 73,015 37,547 16,160 21,387 58 Kansas City, MO-KS 327,165 78,103 863,052 372,972 490,080 1,238 Kennewick-Richland, WA 445,051 96.481 107,793 37,344 70,449 112 Killeen-Temple, TX 234,919 61,241 167,428 69,210 98,218 351 Kingsport-Bristol, TN-VA 259,109 55,253 141,892 57,036 84,856 271 Kingston, NY 346,733 91,945 69,822 23,054 46,768 102 Knoxville, 1N 263,020 55,317 354,560 153,434 201,126 584 Kokomo.IN 219,960 49,386 32,258 17,153 15,105 82 La Crosse-Onalaska, WI-MN 313,738 77,969 57,238 16,838 40,400 89 Lafayette, LA 294,845 64,185 184,22S 69,131 115.094 295 Lafayette-West Lafayette, IN 267,408 58,392 107,479 48,118 59,361 173 Lake Charles, LA 229,506 50,304 77,774 42,388 35,386 92 Lake Havasu City-Kingman, AZ 297,919 60,989 92,768 34,705 58,063 164 Lakeland-Winter Haven, FL 276,074 61,487 233,62S 91,431 142,194 429 Lancaster, PA 310,843 75,164 209,196 88,906 120,290 338 Lansing-East Lansing, MI 255,477 64,293 288,123 137,702 150,421 S04 Laredo, TX 279,197 77,03S 78,420 15,777 62,643 116 Las Cruces, NM 349,523 74,524 76,528 21,995 54,533 107 Las Vegas-Henderson-Paradise, NV 277,524 SS,944 823,704 428,312 395,392 1,306 Lawrence, KS 257,781 62,734 47,720 23,780 23,940 84 Lawlon,OK 268,497 63,935 43,175 21,216 21,959 80 Lebanon,PA 259,001 63,431 52,563 25,413 27,150 94 Lewiston, ID-WA 387,147 83,973 30,540 6,973 23,567 38 Lewiston-Auburn, ME 328,760 81,160 48,049 18,442 29,607 74 Lexington-Fayette, KY 310,489 68,785 208,935 95,286 113,649 311 Lima,OH 231,337 55,709 39,012 19,733 19,279 76 Lincoln, NE 266,459 67,681 139,912 65,216 74,696 276 Little Rock-North Little Rock-Conway, AR 268,254 59,740 297,114 147,862 149,252 472 Logan, UT-ID 301,485 62,905 48,467 25,007 23,460 83 Longview, TX 250,307 59,458 186,934 78,469 108,465 307 Longview, WA 360,613 77,472 41,829 15,290 26,539 58 Los Angeles-Long Beach-Anaheim, CA 713,344 145,889 4,409,663 641,150 3,768,513 2,147 Louisville/Jefferson County, KY-IN 292,174 65,029 471,680 209,840 261,840 833 Lubbock, TX 308,324 81,635 125,338 36,792 88,546 162 Lynchburg, VA 267,953 55,717 102,090 54,124 47,966 151 Macon-Bibb County, GA 210,581 50,435 88,230 41,142 47,088 151 Madera,CA 401,042 85,278 44,194 10,675 33,519 54 Madison, WI 356,179 88,262 285,982 108,779 177,203 459 Manchester-Nashua, NH 399,977 103,669 164,482 70,520 93,962 207 Manhattan, KS 336,394 81,910 78,092 20,9S6 57,136 97 Mankato, MN 301,405 69,343 40,868 19,282 21,586 61 Mansfield, OH 293,039 71,766 53,410 20,276 33,134 102 McAllen-Edinburg-Mission, TX 226,545 60,925 269,326 84,563 184,763 429 Medford, OR 388,327 82,199 83,957 18,355 65,602 66 Memphis, TN-MS-AR 297,937 68,659 506,867 187,444 319,423 800 Mcrced,CA 457,706 95,088 83,012 9,345 73,667 32 Table 3 Households Priced Out of the Market by a $1,000 Price Increase, 2021 Households Income WboCan Who Can't Metro Area Median New Needed to Afford Afford Priced Home Price Qualify All Median Price Median Price Out Miami-Fort Lauderdale-Pompano Beach, FL 457,969 104,198 2,278,186 343,856 1,934,330 1,652 Michigan City-La Porte, IN 259,086 58,486 43,056 17,515 25,541 81 Midland,MI 222,915 56,792 34,874 19,415 15,459 63 Midland, TX 224,330 53,749 65,320 35,098 30,222 96 Milwaukee-Waukesha, WI 395,781 97,111 637,261 187,948 449,313 691 Minneapolis-St. Paul-Bloomington, MN-WI 325,069 75,081 1,415,337 674,233 741,104 2,220 Missoula, MT 309,434 68,649 51,769 29,507 22,262 85 Mobile,AL 284,221 62,801 166,525 60,516 106,009 282 Modesto, CA 366,350 76,913 173,756 66,918 106,838 214 Monroe,LA 317,702 67,504 109,577 38,191 71,386 138 Monroe,Ml 249,893 59,029 59,478 34,286 25,192 108 Montgomery, AL 273,371 56,664 150,428 67,470 82,958 246 Morgantown, WV 205,531 42,522 53,041 26,908 26,133 126 Morristown, TN 246,468 51,494 91,041 32,927 58,114 138 Mount Vernon-Anacortes, WA 394,931 85,247 50,201 19,915 30,286 63 Muncie,IN 117,816 27,219 46,305 33,624 12,681 142 Muskegon, Ml 214,584 52,485 64,101 30,248 33,853 149 Myrtle Beach-Conway-North Myrtle Beach, SC-NC 256,412 53,594 221,938 91,326 130,612 459 Napa,CA 610,590 126,775 49,731 18,212 31,519 4S Naples-Marco Island, FL 385,181 82,638 133,657 53,339 80,318 173 Nashville-Davidson-Murfreesboro-Franklin, TN 335,484 69,840 739,982 290,159 449,823 1,091 NewBem,NC 222,298 49,930 58,471 28,706 29,765 100 New Haven-Milford, CT 314,629 86,187 316,319 137,703 178,616 413 New Orleans-Metairie, LA 300,004 67,094 490,967 190,383 300,584 735 New York-Newark-Jersey City, NY-NJ-PA 365,855 90,379 6,755,857 1,762,684 4,993,173 6,756 Niles, MI 357,048 83,627 56,264 14,138 42,126 62 North Port-Sarasota-Bradenton, FL 319,219 70,181 328,710 137,420 191,290 458 Norwich-New London, CT 398,655 103,060 113,136 36,821 76,315 129 Ocala,FL 261,945 57,896 150,084 53,754 96,330 290 Ocean City, NJ 583,031 139,224 44,634 8,066 36,568 20 Odessa, TX 316,590 76,778 50,888 11,588 39,300 81 Ogden-Clearfield, UT 355,046 72,629 234,293 116,252 118,041 376 Oklahoma City, OK 313,024 75,375 527,699 198,490 329,209 710 Olympia-Lacey-Tumwater, WA 406,318 89,062 117,433 40,107 77,326 140 Omaha-Council Bluffs, NE-IA 246,778 64,784 375,735 209,788 165,947 701 Orlando-Kissimmee-Sanford, FL 347,409 76,861 917,072 316,178 600,894 1,236 Oshkosh-Neenah, WI 317,305 80,615 71,050 28,714 42,336 112 Owensboro, KY 161,225 37,064 52,078 30,604 21,474 141 Oxnard-Thousand Oaks-Ventura, CA 701,407 144,492 261,743 59,685 202,058 145 Palm Bay-Melbourne-Titusville, FL 443,784 98,379 237,583 50,664 186,919 198 Panama City, FL 348,371 76,397 51,192 20,577 30,615 78 Parkersburg-Vienna, WV 286,155 61,449 33,165 13,697 19,468 65 Pensacola-Ferry Pass-Brent, FL 253,445 55,809 195,270 85,856 109,414 346 Peoria, IL 317,997 88,345 195,607 53,888 141,719 309 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 246,628 60,954 2,400,180 1,437,750 962,430 3,707 Phoenix-Mesa-Chandler, AZ 375,534 76,827 1,836,711 777,132 1,059,579 2,189 Pine Bluff, AR 206,097 45,257 38,249 16,671 21,S78 90 Pittsburgh, PA 384,836 93,666 1,058,320 306,280 752,040 1,034 Pittsfield, MA 758,227 182,522 51,061 8,048 43,013 21 Pocatello, ID 225,558 49,471 ,43,907 21,670 22,237 80 Portland-South Portland, ME 441,013 101,010 224,240 76,122 148,118 290 Portland-Vancouver-Hillsboro, OR-WA 458,484 98,901 984,059 346,744 637,315 985 Port St. Lucie, FL 303,798 69,593 182,066 60,932 121,134 301 Providence-Warwick, RI-MA 381,953 91,376 639,870 242,560 397,310 827 Provo-Orem, UT 395,177 78,753 198,865 85,741 113,124 279 Pueblo,CO 224,063 47,549 68,487 35,546 32,941 117 Table 3 Households Priced Out of the Market by a $1,000 Price Increase, 2021 Households Income Who Can Who Can't Metro Area Median New Needed to Afford Afford Priced Home Price Qualify All Median Price Median Price Out Punta Gorda, FL 366,107 83,493 79,922 20,403 59,519 104 Racine, WI 324,641 81,570 83,272 35,934 47,338 104 Raleigh-Cary, NC 270,028 57,975 550,549 325,112 225,437 792 Rapid City, SD 269,772 64,532 52,564 16,362 36,202 93 Reading,PA 292,269 76,154 150,177 61,449 88,728 230 Redding,CA 435,416 93,085 82,663 15,356 67,307 62 Reno,NV 387,742 77,561 202,111 77,671 124,440 284 Richmond, VA 254,894 54,576 481,024 261,515 219,509 803 Riverside-San Bernardino-Ontario, CA 418,722 89,343 1,405,988 490,674 915,314 1,844 Roanoke, VA 317,002 68,638 126,034 49,488 76,546 224 Rochester, MN 302,561 70,524 100,012 51,327 48,685 191 Rochester, NY 361,235 105,755 450,830 88,561 362,269 589 Rockford, IL 161,062 46,768 134,521 77,986 56,535 306 Rocky MoWlt, NC 199,437 46,163 57,910 31,143 26,767 123 Rome,GA 196,862 44,849 37,037 17,978 19,059 76 Sacramento-Roseville-Folsom, CA 470,588 99,696 893,213 290,001 603,212 936 . Saginaw,MI 250,901 64,348 79,674 31,597 48,077 134 St.Cloud,MN 302,452 69,854 79,640 39,141 40,499 131 St. George, UT 380,603 75,955 70,255 . 24,631 45,624 97 St. Joseph, MO-KS 282,106 64,230 47,243 17,010 30,233 82 St. Louis, MO-IL 304,651 73,789 1,161,967 476,460 685,507 1,711 Salem, OR 455,199 98,992 155,445 26,831 128,614 119 Salinas, CA 723,205 147,781 132,172 25,722 106,450 88 Salisbury, MD-DE 259,165 53,052 178,467 88,779 89,688 270 Salt Lake City, UT 337,986 69,109 413,573 217,226 196,347 S90 San Angelo, TX 296,078 74,156 46,130 11,818 34,312 76 San Antonio-New Braunfels, TX 315,494 80,985 844,182 288,231 555,951 1,264 San Diego-Chula Vista-Carlsbad, CA 688,792 142,209 1,135,486 254,416 881,070 491 San Francisco-Oakland-Berkeley, CA 1,048,503 214,302 1,767,678 490,555 1,277,123 801 San Jose-Sunnyvale-Santa Clara, CA 1,365,128 275,915 660,791 3,135 657,656 401 San Luis Obispo-Paso Robles, CA 642,667 131,825 107,143 25,312 81,831 67 Santa Cruz-Watsonville, CA 940,283 190,342 103,377 21,953 81,424 41 SantaFe,NM 316,992 63,959 61,145 31,960 29,185 84 Santa Maria-Santa Barbara, CA 763,453 155,907 146,951 27,689 119,262 46 Santa Rosa-Petaluma, CA 684,881 141,411 197,370 55,434 141,936 135 Savannah, GA 309,020 70,810 141,921 54,093 87,828 191 Scranton-Wilkes-Barre, PA 343,358 86,783 235,249 82,019 153,230 282 Seattle-Tacoma-Bellevue, WA 542,762 116,574 1,571,761 639,320 932,441 1,557 Sebastian-Vero Beach, FL 487,888 107,995 78,607 16,660 61,947 S8 Sebring-Avon Park, FL 282,978 64,001 49,491 11,119 38,372 67 Sheboygan, WI 351,164 88,033 53,831 13,677 40,154 91 Sherman-Denison, TX 277,597 69,830 49,146 23,688 25,458 92 Shreveport-Bossier City, LA 254,714 55,514 123,692 56,730 66,962 197 Sierra Vista-Douglas, AZ 279,912 60,650 56,749 30,343 26,406 135 Sioux City, IA-NE-SD 296,010 74,263 40,601 10,970 29,631 87 Sioux Falls, SD 248,646 58,761 117,895 72,805 45,090 247 South Bend-Mishawaka, IN-Ml 306,877 69,487 121,954 47,151 74,803 176 Spartanburg, SC 208,771 44,322 109,409 62,764 46,645 144 Spokane-Spokane Valley, WA 411,934 90,357 231,614 55,216 176,398 189 Springfield, IL 283,016 75,607 88,580 36,561 52,019 130 Springfield, MA 426,645 105,101 352,211 79,383 272,828 386 Springfield, MO 290,686 65,230 209,508 82,927 126,581 290 Springfield, OH 264,961 65,389 52,610 19,146 33,464 97 State College, PA 384,436 86,356 59,871 21,412 38,459 65 Staunton, VA 236,599 49,464 53,409 28,259 25,150 124 Stockton, CA 483,261 102,737 226,925 70,299 156,626 201 Table 3 Households Priced Out of the Market by a $1,000 Price Increase, 2021 Households Income Who Can Who Can't Metro Area Median New Needed to Afford Afford Priced Home Price Qualify All Median Price Median Price Out Sumter,SC 177,116 38,799 110,287 57,903 52,384 173 Syracuse, NY 335,223 96,347 252,676 57,490 195,186 325 Tallahassee, FL 238,070 53,321 166,066 84,389 81,677 304 Tampa-St Petersburg-Clearwater, FL 342,661 76,800 1,230,796 396,742 834,054 1,605 Terre Haute, IN 205,010 46,803 84,408 41,252 43,156 161 Texarkana, TX-AR 290,979 70,650 51,995 22,496 29,499 102 The Villages, FL 330,779 72,254 53,207 15,937 37,270 84 Toledo,OH 272,662 68,569 319,298 116,182 203,116 600 Topcka,K.S 247,519 62,812 95,929 49,615 46,314 192 Trenton-Princeton, NJ 243,656 68,332 126,695 73,581 53,114 226 Tucson,AZ 407,718 88,932 427,056 101,320 325,736 358 Tulsa,OK 296,874 69,911 398,599 137,857 260,742 551 Tuscaloosa, AL 284,008 58,TI9 97,758 40,219 57,539 143 Twin Falls, ID 241,717 51,089 38,719 17,249 21,470 91 Tyler, TX 360,748 88,543 81,203 16,308 64,895 102 Urban Honolulu, lil 823,292 157,047 333,620 70,764 262,856 137 Utica-Rome, NY 378,485 105,831 122,371 23,794 98,577 135 Valdosta, GA 230,528 53,654 55,946 22,230 33,716 110 Vallejo,CA 433,539 91,368 146,668 64,709 81,959 203 Victoria, TX 323,563 83,420 28,795 10,303 18,492 42 Vineland-Bridgeton, NJ 183,474 53,131 54,118 31,994 22,124 108 Virginia Beach-Norfolk-Newport News, VA-NC 281,517 62,186 718,994 354,000 364,994 1,269 Visalia, CA 357,964 75,289 154,459 39,602 114,857 228 Waco, TX 278,912 71,263 102,133 34,896 67,237 155 Walla Walla, WA 451,406 99,907 21,781 4,850 16,931 23 Warner Robins, GA 246,645 56,640 63,769 30,119 33,650 119 Washington-Arlington-Alexandria, DC-VA-MD-WV 463,972 100,850 2,284,252 1,197,649 1,086,603 2,209 Waterloo-Cedar Falls, IA 305,471 16,SSS 64,711 19,326 45,385 106 Watertown-Fort Drum, NY 187,012 46,956 35,104 16,930 18,174 103 Wausau-Weston, WI 251,509 62,740 96,536 45,042 51,494 205 Weirton-Steubenville, WV-OH 246,787 56,053 46,985 19,712 27,273 89 Wenatchee, WA 344,065 73,423 38,422 14,690 23,732 41 Wheeling, WV-OH 118,858 26,194 63,178 48,324 14,854 157 Wichita, KS 243,952 61,301 242,956 101,659 141,297 531 Wichita Falls, TX 394,104 106,803 61,442 6,782 54,660 39 Williamsport, PA 336,583 81,920 45,360 10,681 34,679 73 Wilmington, NC 346,731 75,704 123,448 48,267 75,181 172 Winchester, VA-WV 260,226 53,743 43,484 27,566 15,918 93 Winston-Salem, NC 261,452 57,066 269,278 121,654 147,624 443 Worcester, MA-CT 391,919 93,394 383,546 151,510 232,036 499 Yakima, WA 358,557 78,213 85,352 17,375 67,977 82 York-Hanover, PA 253,587 64,728 178,445 91,674 86,771 367 Youngstown-Warren-Boardman, OH-PA 310,407 77,269 237,108 71,501 165,607 382 Yuba City, CA 382,777 82,322 63,386 28,782 34,604 88 Yuma,AZ 214,190 46,237 73,072 42,402 30,670 14S