NAHB: Subtle changes to price can impact homeownership rates
Posted on Tuesday, August 5, 2014 at 7:58:27 AM
Naturally, a higher home price means fewer people can afford to buy that property. However, a recent study from the National Association of Home Builders has found that even a subtle change to the total can drive a lot of potential homebuyers away from the market, even as residential financing rates are historically low.
The NAHB reported that for every $1,000 uptick over the cost of a new, median-priced home, 206,000 people can no longer afford to live there. This changes depending on location as well, with only 313 people in Wyoming being affected by this small change compared to more than 18,000 in Texas.
"Local, state and federal government officials need to know that higher regulatory costs have real consequences for working American families," said NAHB chairman Kevin Kelly. "Oftentimes, these government regulations end up pushing the price of housing beyond the means of many teachers, police officers, firefighters and other middle class workers."
Thankfully, there are plenty of ways you can prepare for a mortgage. According to Realtor.com, you must first get your credit in order. Boost your score by making all payments on time and settling any outstanding debt, but also make sure your rental history is up-to-date. A missed payment here could hamper your chances of a home loan.