In all the wrangling over credit, construction and confidence in this housing recovery, the real cost of owning a new home could come down to about the same amount as the cost of a new washing machine. One industry group claims just $1,000 makes all the difference.
"Each $1,000 increase in the cost of a new median-priced home price forces 206,000 prospective buyers out of the marketplace," reads the first line of a new report from the National Association of Home Builders.
NAHB researchers based their findings on the number of households that would not qualify for a mortgage (factoring income, debt, interest, property taxes and homeowners insurance) based on that price increase to a median-priced home. They varied state to state, with a low of 313 borrowers not qualifying in Wyoming, to a high of 18,250 in Texas.
"It all adds up. A thousand dollars means an additional monthly cost, based on someone's income. That may make the difference between owning and renting," said Robert Dietz, a tax and market analyst at the NAHB.