Pyramid Illustrates Housing Affordability Crisis

NAHB has updated its “housing affordability pyramid” for 2023, and the latest data show that 64.8 million households out of a total of 132.5 million are unable to afford a $250,000 home.

The pyramid is based on conventional underwriting standards that assume the cost of a mortgage, property taxes and property insurance should not exceed 28% of household income. Based on this methodology, NAHB economists have calculated how many households have enough income to afford a home at various price thresholds.

At the base of the pyramid are 39 million U.S. households with insufficient incomes to be able to afford a $150,000 home.

The pyramid’s second step consists of 25.8 million with enough income to afford a top price somewhere between $150,000 and $250,000. Adding up the bottom two rungs shows that there are 64.8 million households who cannot afford a $250,000 home.

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Missing Middle Housing: How Localities Are Streamlining Efforts for ADUs and Other Building Types

Accessory dwelling units (ADUs) are being utilized across the country to support aging parents or children, to keep family close together and provide lower-cost housing alternatives. Also known as in-law suites or granny flats, ADUs can be detached, garage-style conversions or attached to main homes in basements or separate units. They can add subtle density and increase the number of housing units in a neighborhood while maintaining character.

NAHB has been promoting this type of housing as a way to provide a variety of housing choices at varying price points to meet the needs to a changing nation. ADU development is not allowed in many areas of the country, however, because of single-family zoning.

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NAHB Announces Multifamily Pillars of the Industry Award Winners

The National Association of Home Builders (NAHB) honored outstanding work in multifamily development at the NAHB Multifamily Pillars of the Industry virtual awards ceremony held last week.

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Funding for HBA Workforce Development Programs Available

The National Housing Endowment (NHE) wants to challenge the building industry to help build and grow new state and local partnerships and opportunities.

As part of this effort, NHE created the Challenge | Build | Grow Grant Initiative for NAHB state and local home builder associations (HBAs). The Endowment is offering eligible applicants up to $5,000 in matching challenge grant funds for programs and projects addressing NAHB’s highest priority areas, including education and worker training — focusing on building innovations and growing the future workforce.

NHE is currently accepting applications from HBAs and the deadline is March 31, 2023.

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3 Strategies to Become Essential and Thrive in 2023

The panelists took an in-depth look at how to use these strategies in construction, vehicle parts and accessories, and real estate, and shared helpful tips about how to keep demand for your business high when consumers are spending less.

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