The NAHB released this week its affordability chart that shows, based on household income, how much of a house one can afford.
Based on conventional assumptions and underwriting standards, it takes an income of about $26,695 to purchase a $100,000 home. In 2014, about 31 million households in the U.S. are estimated to have incomes lower than that threshold and, therefore, can only afford to buy homes priced under $100,000. These 31 million households form the bottom step of the pyramid. Of the remaining 87 million who can afford a home priced at $100,000, 22.8 million can only afford to pay a top price of somewhere between $100,000 and $175,000 (the second step on the pyramid).