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%