US Housing Market: Rising Costs and Income Requirements.

The cost of building a new single-family home in the US has risen at an unprecedented pace due to the rising cost of land, labor, and building materials, according to a report by Bank of America. The US is short of at least 1.5 million housing units, and the cost of building materials has surged by 35% since the start of the pandemic. Despite the rising costs, builders are optimistic about future sales due to strong demand for new homes and low inventory. The biggest and most expensive component of a typical single-family home is framing lumber and engineered wood, followed by concrete for the foundation, windows, and doors.