Phoenix Ranks 25th In Vulnerability To Small Home-price Hike

A curious study the the National Association of Homebuilders tried to figure out how a $1,000 jump in the cost of housing would hurt various U.S. markets. (Read it HERE) The goal was to show how added property-related taxes can hurt real estate by cutting the number of possible buyers: "The analysis found that every $819 rise in fees paid at the beginning of the construction process – such as an increase in the price of a construction permit, a tap fee, a proffer or an impact fee – adds an additional $1,000 to the final price of the home," NAHB says.

Nationwide, 217,000 potential buyers would be nudged out of the '07 market by a $1,000 price hike (using typical assumptions about the mortgage, down payment, property taxes and property insurance.) In the Phoenix market, NAHB claims 1,130 shoppers would be priced out of the market by a $1,000 price hike, ranking us 25th out of 354 major U.S. markets tracked.

Other noteworthy towns:
• Dallas that would lose 4,193 buyers, the nation's worst.
• LA at 1,143 lost buyers, ranking right ahead of Phoenix at 24th.
• Las Vegas at 948, ranking 31st.
• Inland Empire at 594, ranking 57th
• San Diego at 296, ranking 124th.
• La Crosse, Wisc., and Ocean City, N.J., with 10, the national best.

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