Even as Naples Housing Becomes Less Affordable, Homebuilders are Optimistic
Even though the cost of Naples housing and mortgages is becoming increasingly unaffordable, “homebuilders are still optimistic about demand,” and say that they have a big enough backlog of unfinished orders to keep them busy for months. But the truth of the current situation is that many potential homebuyers are being priced out of the Naples housing market as affordability drops by 13 percent.
When mortgage rates were at 5 percent, a homebuyer earning $100,000 a year and with a $40,000 downpayment could afford a $421,000 Naples home. As mortgage rates increased to 6 percent that same buyer could only afford to spend $390,000, and as soon as rates hit 7 percent, the buyer will only be able to afford Naples housing that costs $362,500 or less.
When mortgage rates were at 5 percent, a homebuyer earning $100,000 a year and with a $40,000 downpayment could afford a $421,000 Naples home. As mortgage rates increased to 6 percent that same buyer could only afford to spend $390,000, and as soon as rates hit 7 percent, the buyer will only be able to afford Naples housing that costs $362,500 or less.
