Most Americans Have The Means To Buy A Newly Built Home

A person making $45,000 a year could afford a $300,000 new house. In theory, at least.

According to Zillow, nearly 60 percent of U.S. households earn enough money to buy a home at that price without exceeding the 43 percent debt-to-income ratio rules that lenders stipulate for conventional loans.

Of course, buyers approaching the 43 percent ratio would be working with a tight budget. People are considered cost-burdened if they spend 30 percent or more on housing.

Assuming a 10 percent down payment and a 30-year, fixed-rate mortgage at a 4.5 percent interest rate, 83 million households, or 70.2 percent, earn enough money each year ($32,000) to qualify to buy a median-valued home, which is currently $200,000.

But new construction homes tend to be more expensive. Builders generally build at the 70th percentile of home value. Nationwide, that works out to a $303,000 home, and it requires a minimum estimated annual income of $45,360 to qualify. A majority (58.3 percent) of households earn that much.

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