According to a study conducted by the National Association of Home Builders (NAHB), a $1,000 increase in the cost of median-priced and newly-built homes in Vancouver pushes 781 prospective buyers out of the market.
“This study illustrates how even a relatively small increase in price or interest rates can dramatically impact housing affordability,” Building Industry Association of Clark County Executive Director Avaly Scarpelli said in a news release. “Housing affordability has reached crisis status in communities across our state. Rising interest rates, regulatory barriers, higher building materials costs and labor shortages all add to the cost of a home, and are preventing households from achieving the goal of homeownership.”
According to the NAHB study, the median price for a home in the Vancouver and Portland metro area is about $499,000. While the price of a physical home in the Vancouver area is less expensive than the Seattle, Tacoma and Bellevue areas, local home prices are the third highest in the state and continue to rise due to permits and fees.
“As legislators convene in Olympia, they need to understand that by adding layers of regulation, taxes and fees, you cannot make housing more affordable,” Scarpelli said. “Over 25 percent of the cost of a new home nationally is the result of government regulation and does not include regulations imposed at the state and local level here in Washington.”