More Buyers Believe Housing Affordability is Worsening
Buyers’ perceptions of housing affordability have deteriorated for three straight quarters, indicating that double-digit home price hikes over the past year have more than offset the positive impact that low interest rates had over the same time period.
In the third quarter of 2021, 73% of buyers estimated they could afford less than half the homes available for sale in their markets, according to survey results from the latest NAHB Housing Trends report. That share is up from 71% the prior quarter, 65% the quarter before that, and 63% in the final quarter of 2020.
Between the second and third quarters of 2021, affordability expectations worsened in the Northeast and South, as the share of prospective buyers reporting they were able to afford less than half the homes available rose from 66% to 69% and from 75% to 76%, respectively.
When measured from the final quarter of 2020 to now, however, buyers’ perceptions of affordability have deteriorated in every region of the United States.
Rose Quint, NAHB assistant vice president for survey research, provides more analysis in this Eye on Housing blog post.
Latest from NAHBNow
Jul 03, 2025
Consumer Confidence Retreats in JuneAfter a strong rebound in May, consumer confidence resumed its downward trend in June. Consumers remain concerned about the economy and labor market amid ongoing uncertainty, especially around tariffs.
Jul 02, 2025
5 Proven Strategies Smart Builders Use to Grow in Any MarketSound Capital has worked with builders across market cycles for over 20 years. They have seen who thrived when others pulled back, and they've studied the strategies they used to scale while competitors were sidelined. Here are five things they all had in common.
Latest Economic News
Jul 03, 2025
Solid Job Growth in JuneThe U.S. labor market continued to show resilience in June, with steady job gains led by state/local government and health care sectors.
Jul 02, 2025
Two or More Story Home Starts Rebound in 2024Over half of new single-family homes built in 2024 were two or more stories, according the recent release of the Census Bureau’s Survey of Construction (SOC). After declining in 2023, the share of homes started with two or more stories increased again in 2024, continuing the upward trend in place since 2020.
Jul 01, 2025
May Private Residential Construction Spending DipsPrivate residential construction spending fell by 0.5% in May, marking the fifth straight month of decreases. This drop was primarily driven by reduced spending on single-family construction. Compared to a year ago, total spending was down 6.7%, as the housing sector continues to navigate the economic uncertainty stemming from ongoing tariff concerns and elevated mortgage rates.