Most Americans Can't Afford New Homes

Most Americans can’t afford a new home.

A new analysis from the National Association of Home Builders (NAHB) shows that 65% of U.S. households are priced out of newly built homes, based on current prices and mortgage rates.

In some parts of the country, the situation is even more extreme. More than 80% of households can’t afford a new home, highlighting how widespread the affordability gap has become.

This map, via Visual Capitalist's Dorosthy Neufeld, shows where Americans are being priced out and where barriers to homeownership are highest.

Ranked: Where Americans Are Most Priced Out of New Homes

At the extreme end, buying a new home is nearly out of reach. In New Hampshire, 83.4% of households are priced out of a new median-priced home.

In total, 11 states have at least 80% of households locked out.

This table shows the share of households priced out of new homes by state in 2026. A household is considered “priced out” if total housing costs—principal, interest, taxes, and insurance—exceed 28% of income, based on median new home prices and a 6% mortgage rate.

State	% of Households Priced Out of New Homes	Median New Home Price	Income Needed to Qualify
New Hampshire	83.4%	$677,982	$211,080
Hawaii	83.0%	$884,781	$234,818
Maine	82.7%	$548,493	$160,714
Alaska	82.2%	$627,077	$188,313
Connecticut	81.8%	$696,752	$224,811
Wyoming	81.8%	$580,627	$164,982
Montana	81.5%	$495,610	$141,997
Oregon	81.0%	$608,135	$173,717
New York	80.5%	$656,108	$204,163
Vermont	80.1%	$580,627	$181,064
Pennsylvania	80.0%	$528,370	$160,900
Massachusetts	79.8%	$836,236	$246,370
Wisconsin	77.3%	$485,449	$149,085
Ohio	76.5%	$443,646	$137,310
Washington	76.1%	$649,812	$185,213
Colorado	75.1%	$644,149	$179,928
Kansas	73.4%	$401,237	$128,372
Rhode Island	72.9%	$578,724	$174,451
South Carolina	72.5%	$421,098	$118,180
New Mexico	71.7%	$362,847	$104,055
Illinois	71.3%	$428,712	$143,374
Michigan	71.3%	$371,503	$122,158
Kentucky	71.3%	$398,741	$109,299
Florida	71.1%	$429,644	$127,139
Indiana	70.7%	$418,993	$123,219
District of Columbia	70.1%	$836,441	$232,260
Iowa	70.0%	$348,337	$120,598
Arkansas	70.0%	$381,881	$100,780
Alabama	69.2%	$375,944	$106,586
New Jersey	69.1%	$527,069	$172,356
Utah	68.2%	$531,151	$145,638
Tennessee	67.7%	$399,580	$111,631
Oklahoma	67.6%	$351,771	$107,846
Arizona	66.6%	$446,796	$122,364
Missouri	66.6%	$371,515	$111,332
Idaho	66.4%	$430,280	$117,615
North Carolina	66.4%	$394,058	$112,263
Louisiana	66.2%	$318,728	$95,895
California	65.6%	$545,892	$153,471
Nevada	65.5%	$420,782	$115,555
West Virginia	64.8%	$308,607	$88,071
Texas	64.5%	$369,798	$117,131
Georgia	62.5%	$374,579	$109,329
Minnesota	62.1%	$402,209	$122,025
Nebraska	62.0%	$328,603	$107,185
South Dakota	62.0%	$346,894	$106,233
North Dakota	61.4%	$382,451	$116,480
Mississippi	61.1%	$266,837	$80,174
Virginia	58.9%	$429,184	$122,542
Maryland	58.5%	$432,949	$127,559
Delaware	56.0%	$376,478	$104,282

While high-cost states like Hawaii and Massachusetts rank among the least affordable, others such as Maine and Wyoming show that affordability pressures are no longer limited to major metro areas.

Affordability Isn’t Just a Coastal Problem

The most striking takeaway is how universal the problem has become.

Even in lower-cost states like Mississippi ($267K) and West Virginia ($309K), a majority of households are still priced out new homes. While buyers need under $90,000 in income—compared to over $200,000 in the least affordable markets—that threshold remains out of reach for many.

In other words, moving to a cheaper state is no longer a reliable solution. Instead, the data points to a deeper issue, which is that incomes have not kept pace with rising housing costs across the country.

While existing homes can be more affordable than new construction, this data highlights a key constraint: much of the new housing supply entering the market is already out of reach for most households.

The Bigger Picture

As new home prices continue to outpace income growth, the gap between who can and can’t afford newly built homes is widening. That shift is reshaping where Americans live, how they build wealth, and whether homeownership is attainable at all.

If even the most affordable states are out of reach for most households looking at new homes, the question becomes harder to ignore: where can buyers realistically go next?

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To learn more about this topic, check out this graphic on where wealth is moving in America.