NAHB Reports on Regional Outlook in Housing Trends Report
Washington, DC, August 2, 2021--The increased activity in the housing market in the wake of Covid-19, combined with rising housing prices, has hampered prospective buyers’ outlook on the housing market and their ability to buy a home.
According to NAHB’s Housing Trends Report (HTR), 64% of prospective homebuyers in Q2 2021 expect that finding the right home will be harder in the months ahead, compared to 54% in the last quarter of 2020. Expectations that finding a home would be easier in the months ahead dropped in all four regions between Q1 2020 and Q2 2021:
Northeast: 44% who thought it would be easier to find a home compared to 33%
Midwest: 23% to 19%
South: 32% to 29%
West: 40% to 25%
Buyers across these same regions are also reporting seeing a decrease in the number of homes for sale over the same time frame:
Northeast: 48% seeing more homes for sale compared to 43%
Midwest: 30% to 28%
South: 37% to 33%
West: 42% to 27%
Although inventory is expected to improve-with the number of unsold homes rising 3.3% to 1.25 million from May to June 2021-buyers are still hampered with rising home prices. The share of prospective buyers who can only afford less than half the homes in their markets rose to 71% in Q2 2021, up from 65% in Q1 2021 and 63% in Q4 2020.
Affordability struggles persist in all four regions:
Northeast: 51% of prospective buyers who can afford less than half the homes in their markets in Q4 2020 compared to 66% in Q2 2021
Midwest: 74% to 83%
South: 68% to 75%
West: 61% to 70%