Some Buyers Perceive an Uptick in Affordability

Housing Affordability
Published

For some home buyers, housing affordability improved in the last 12 months. According to the Housing Trends Report for the third quarter of 2020, 27% of buyers report being able to afford half or more of the homes available for sale in their markets. A year earlier, that share was 20%.

The increase is an indication that lower mortgage rates have had a stronger impact on some buyers’ perceptions of affordability than rising home prices. Nonetheless, it is important to keep in mind that most home buyers (72%) still say they can afford only a minority of the homes available in their markets.

Between the third quarters of 2019 and 2020, the share of buyers who can afford half or more of the homes available rose most significantly among millennials (17% to 31%), but dropped among boomers (23% to 19%). Across regions, the share rose most significantly in the Northeast (21% to 39%), but dropped in the Midwest (23% to 19%).

Rose Quint, NAHB's assistant vice president for survey research, provides more details in this Eye on Housing report.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Environmental Issues

May 30, 2025

NAHB Members Provide Final Recommendations for New WOTUS Rule

NAHB members concluded their participation in multiple “waters of the United States” (WOTUS) listening sessions with strong showings in Washington, D.C., and Salt Lake City. In total, 12 NAHB members and four staff members from NAHB and state home builder associations (HBAs), representing 11 states, provided oral statements at listening sessions.

Workforce Development

May 30, 2025

Statement from NAHB Chairman Buddy Hughes on DOL Decision to Pause Job Corps Center Operations

NAHB Chairman Buddy Hughes issued the following statement after the Department of Labor announced it was pausing Job Corps center operations nationwide.

View all

Latest Economic News

Economics

May 30, 2025

Multifamily Absorption Moves Lower for New Apartments

The percentage of new apartment units that were absorbed within three months after completion continued to trend lower, according to the Census Bureau’s latest release of the Survey of Market Absorption of New Multifamily Units (SOMA).

Economics

May 29, 2025

Treasury Yield Increase Drives Mortgage Rates Higher in May

Mortgage rates continued their upward trend in May due to market volatility triggered by fiscal concerns and weaker U.S. Treasury demand. According to Freddie Mac, the average 30-year fixed-rate mortgage rose to 6.82% — a 9-basis-point (bps) increase from April. The 15-year fixed-rate mortgage increased by 5 bps to 5.95%.

Economics

May 28, 2025

Aging-in-Place Remodeling Work Fell While Familiarity and Receptiveness Remain High

Only 56% of professional remodelers undertake projects designed to allow homeowners to Age-in-Place (AIP), according to results from NAHB’s Q1 2025 Remodeling Market Index (RMI) survey.