In the last year, home prices have skyrocketed across the county, and Washington millennials feel the squeeze as they are pushed out of the market. In Washington alone, the median price of a new home has increased 8.4 percent from $522,023 in 2021 to $565,613 in 2022, according to the most recent National Association of Home Builders (NAHB) “Priced Out” report.

At that price, the Building Industry Association of Washington calculates that households need $130,409 in income just to qualify for a mortgage. When Washington’s median household income is just $73,775, the result is that 76 percent of households cannot afford a new home.

It’s easy to blame factors like supply chain disruptions or lumber prices when we look at the housing affordability crisis in our state and nation. Decades of increasing layers of regulation and zoning restrictions have slowly and steadily created the crisis we’re in today.

Now we face the consequences of those regulations, restrictions and laws as there simply are not enough homes available for people to purchase. 

Washingtonians want balance

NAHB recently reported that 82 percent of Americans in a recent nationwide poll agreed that policymakers “should factor in housing affordability when considering new legislation and regulations.” In Washington, that number grew to 84 percent.

For every $1,000 increase in the cost of building a new home now prices more than 2,182 people out of the market in Washington. Homeownership is an issue that Republicans and Democrats must prioritize if they want to see a change for the better.

Homes drive household wealth

NAHB reports that home ownership is the primary driver of household wealth. Across all racial and ethnic demographics, people’s homes were their most significant asset.

Yet NAHB reports that the homeownership rate in Washington is only 63 percent. People across the state and nation agree that housing affordability is a problem—79 percent of Americans and 85 percent of Washington residents—according to the NAHB poll.

It’s time we hold our lawmakers accountable. Everyone deserves the opportunity to achieve the American dream of home ownership. 

Watch the CutTheCosts videos to learn how zoning, permitting delays and regulations increase the costs of homes, making them unattainable to first-time homebuyers.