Washington’s Housing Attainability Crisis in Each County: Part 1
How The Housing Shortage Impacts A Family’s Ability To Purchase A Home In Major Markets And Submarkets
Executive Summary
BIAW’s national counterpart, the National Association of Home Builders (NAHB), produces an annual priced-out report for new homes. NAHB’s report focuses primarily on major markets and submarkets. Nationally home prices jumped 20 percent from 2021 to 2022.
In Washington state, the median price of a new home has increased 8.4 percent from $522,023 in 2021 to $565,613 in 2022. At that price, the BIAW calculates that households need $130,409 in income just to qualify for a mortgage. At a time when Washington’s median household income is $73,775, 76 percent of households are unable to afford new homes.
Every $1,000 increase in the cost of building a new home now prices more than 2,182 people out of the market in Washington.
NAHB reports homeownership is the primary driver of household wealth. Across all racial and ethnic demographics, people’s homes were their largest asset. Yet NAHB reports the homeownership rate in Washington is only 63 percent.
People across the state and nation agree housing affordability is a problem—79 percent of Americans and 85 percent of Washington residents—according to the NAHB poll.
This report details the effects of the state’s housing shortage on families’ ability to find new homes they can afford across the major metropolitan markets in Washington.
Sources
Zhao, Na. “NAHB Priced-Out Estimates for 2022.” Special Study for Housing Economics: National Association of Home Builders, February 2022. https://www.nahb.org/-/media/05E9E223D0514B56B56F798CAA9EBB34.ashx
Disclaimer
The content in this report is intended for informational purposes only. The information contained in this report may not constitute the most up-to-date economic, housing, or other information, nor does it represent a complete assessment of the housing market. This report does not constitute any recommendation or solicitation to any person to enter into any transaction or to adopt any investment strategy. Any business or investment decisions should not be based purely on the information presented in this report. Readers are encouraged to seek independent professional investment, legal, and/or tax advice. All liability with respect to actions taken or not taken based on the contents of this report are hereby expressly disclaimed. The content is provided "as is;" no representations are made that the content is error-free.