Buyers’ Outlook on Housing Availability and Affordability Declines

Housing Affordability
Published

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 home buyers in the second quarter of 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 the first quarter of 2020 and the second quarter of 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 second quarter of 2021, up from 65% in the first quarter of 2021 and 63% in the final quarter of 2020.

Affordability struggles persist in all four regions:

  • Northeast: 51% of prospective buyers who can only afford less than half the homes in their markets in the final quarter of 2020 compared to 66% in the second quarter of 2021
  • Midwest: 74% to 83%
  • South: 68% to 75%
  • West: 61% to 70%

Rose Quint, NAHB assistant vice president for survey research, provides more insight in this post and this post from Eye on Housing.

Subscribe to NAHBNow

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

Log in to subscribe

Latest from NAHBNow

Economics | Housing Affordability

Aug 21, 2025

New and Existing Homes Remain Largely Unaffordable in Second Quarter

While new homes remain largely unaffordable, builder efforts to improve housing affordability paid dividends in the second quarter of 2025, according to the latest data from the NAHB/Wells Fargo Cost of Housing Index (CHI). The CHI results from the second quarter of 2025 show that a family earning the nation’s median income of $104,200 needed 36% of its income to cover the mortgage payment on a median-priced new home. Low-income families, defined as those earning only 50% of median income, would have to spend 71% of their earnings to pay for the same new home.

Economics

Aug 20, 2025

Custom Home Building Grows as Broader Housing Market Struggles

An analysis of census data by NAHB economists shows that custom home building grew 4% in the second quarter of 2025 as high interest rates and home prices suppress demand for traditional spec home production.

View all

Latest Economic News

Economics

Aug 21, 2025

Existing Home Sales Rise in July

Existing home sales rebounded in July as mortgage rates retreated from the recent peak and home price growth slowed, according to the National Association of Realtors (NAR).

Economics

Aug 21, 2025

New and Existing Homes Remain Largely Unaffordable in Second Quarter

While new homes remain largely unaffordable, builder efforts to improve housing affordability paid dividends in the second quarter of 2025, according to the latest data from the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI).

Economics

Aug 20, 2025

Retreat for Single-Family Built-for-Rent Housing

Single-family built-for-rent construction fell back in the second quarter, as a higher cost of financing crowded out development activity.