Have High Home Prices Reduced Buyer Interest in New Homes?
The share of prospective home buyers looking to buy a newly built home peaked at 42% in the fourth quarter of 2020, before falling to 38% and 33%, respectively, in the first two quarters of 2021.
The drop is most likely the direct result of strong gains in new home prices in 2021, which have been driven by double-digit growth in the price of goods used in residential construction. These results come from NAHB's latest Housing Trends Report.
In contrast, the share of buyers looking only at existing homes rose from 31% in the final quarter of 2020 to 35% in the second quarter of 2021, while those who will buy either new or existing homes increased from 27% to 32% of all prospective buyers during this period.
Regionally, the share of buyers who would prefer a new home peaked in the Northeast and West in the first quarter of 2021 at 60% and 51%, respectively, before falling to 34% and 40% in the second quarter of the year.
In the South, the share peaked in the third quarter of 2020 at 33%, but is now at 30%. In the Midwest, the share peaked in the final quarter of 2020 at 27%, but is now down to 19%.
Rose Quint, NAHB’s assistant vice president for survey research, provides more analysis in this Eye on Housing blog post.
Latest from NAHBNow
Remodeling | Economics
Nov 17, 2025
Remodeling Gaining Larger Share of Residential Construction MarketAs the nation’s housing stock ages and new homes remain out of reach for many buyers, remodeling is capturing a growing share of the residential construction market.
Membership
Nov 14, 2025
NAHB Mourns the Passing of Past President Robert “Bob” MitchellRobert L. “Bob” Mitchell, 2000 NAHB president, passed away on Wednesday, Nov. 12.
Latest Economic News
Economics
Nov 17, 2025
August Private Residential Construction Spending Edges HigherPrivate residential construction spending inched up 0.8% in August, continuing steady growth since June 2025. This modest increase was primarily driven by more spending on multifamily construction and home improvements.
Economics
Nov 17, 2025
What Home Features Add the Most Value?The value of a single-family home is shaped by many factors, but its physical features remain among one of the most influential. Using the latest 2023 American Housing Survey (AHS), this study focuses on which home features genuinely boost single-family detached home values and by how much.
Economics
Nov 14, 2025
Credit Conditions for Builders Continue to Be TightCredit conditions on loans for residential Land Acquisition, Development & Construction (AD&C) were still tightening in the third quarter of 2025, according to NAHB’s quarterly survey on AD&C Financing.