Realtor.com recently came out with its report card on how well each of the 50 states and the District of Columbia do when it comes to homebuilding and home affordability. Once again, New York State received an F, along with five other states; Massachusetts, Rhode Island, Hawaii, California and Connecticut.
In addition, New York had the worst score with 8.5, falling two spots from last year. Realtor.com graded the states and D.C. on two criteria: affordability (50% of the score), which measures the accessibility of homeownership to the state’s typical earners, and homebuilding (50% of the score), which evaluates whether states are producing enough homes to meet demand. Any state that scores below 30 received an F.
Among the findings in the report card:
- Homes in New York State were listed at a median price of $668,173, which means homebuyers would have to use more than half (55.2%) of their median income, which is $82,657 a year.
- The permit-to-population ratio was 0.45, which means the number of homes being built are not meeting demand due to the number of building permits being less than half what its population share suggests.
- The new-construction premium is 73.0%, meaning that the new homes are extremely expensive, making it difficult to alleviate affordability pressures for typical buyers.
- Building permitting fell 17% year over year.
“As long as builders drag their feet on new home construction and decide to build McMansions rather than affordable family homes, New York will continue to fall behind in homebuilding and home affordability,” said Joe Moshé, Broker/Owner, Charles Rutenberg Realty. “I am saddened, but not shocked, by these results.”
During the state budget sessions, Governor Kathy Hochul announced legislation that will alleviate the housing crisis by expediting the permitting process and lifting onerous environmental reviews. Mr. Moshé said, while that is commendable, it is not a quick fix.
“The housing crisis is not going to be solved overnight,” he said. “It takes time for inventory to build up and, eventually, for prices to fall. For those looking to buy a cheaper home, they will have to play the waiting game.”