Where Affordability Breaks Down At the heart of ABMA’s proposal is a clear insight grounded in market data: America’s housing shortage is not evenly spread across the market.
When ABMA examined supply-and- demand data, a clear pattern emerged. At higher price points, supply and demand are relatively balanced. But at $300,000 and under, demand dramatically outpaces supply — leaving millions of families with few, if any, viable options. “That’s where affordability really breaks down ,” Palasieski explains. “There are tens of millions of American families who can afford a home in that range, and simply not enough homes available to meet that need.”
THE HOUSING MARKET AT A GLANCE SUPPLY VS. DEMAND BY PRICE POINT
LOW BALANCED HIGH
RELATIVELY BALANCED
Market conditions are more balanced at higher price points
$700k +
Supply & demand are in balance.
For builders, the challenge isn’t desire. It’s feasibility.
LOW
BALANCED
HIGH
TIGHTENING
Inventory is tightening in mid-price range.
$500k +
Demand is beginning to outpace supply.
Builders want to build where demand exists. But right now, policy-driven costs make it extremely difficult to build homes in the price
HIGH
LOW
BALANCED
SEVERE SUPPLY SHORTAGE
$300k +
The greatest affordability gap exists at $300,000 and under
Demand significantly outpaces available supply.
Editorial illustration based on ABMA analysis and industry data
range American families actually need.
— Francis Palasieski
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