Prospective Buyers Frustrated by Bidding Wars, but Continue to Search
Home buyers have not only struggled to contend with double-digit price hikes; they’re also having difficulty purchasing homes because of bidding wars. For only the third time in the history of NAHB’s Housing Trends Report, the top reason buyers are struggling to buy a home is because they are getting outbid (45%).
For reference, in the first quarter of 2018, only 18% of prospective buyers indicated that bidding wars were an issue in their home-buying process. Affordability remains a concern (36%), along with finding a home in the right neighborhood and desired features.
Nearly half of buyers (49%) indicated, though, that if they are unable to find a home in the next few months, they will continue searching for the “right” home in the same location. Almost 30% said they would also be willing to buy a smaller or older home, up from 24% the previous quarter.
Rose Quint, NAHB assistant vice president for survey research, provides more details in this Eye on Housing post.
Latest from NAHBNow
Legal | Material Costs
May 16, 2025
Court of International Trade Hears Arguments Against Trump TariffsA three-judge panel at the U.S. Court of International Trade this week heard oral arguments in one of several pending challenges to the “Liberation Day” tariffs imposed on April 2.
Economics
May 16, 2025
Single-Family Starts Down on Economic and Tariff UncertaintyOverall housing starts increased 1.6% in April to a seasonally adjusted annual rate of 1.36 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
Latest Economic News
Economics
May 15, 2025
Cost of Credit Eases for Builders and DevelopersThe cost of credit for residential Land Acquisition, Development & Construction (AD&C) eased in the first quarter of 2025, according to NAHB’s survey on AD&C Financing.
Economics
May 15, 2025
Soft Spring Selling Season Takes a Toll on Builder ConfidenceBuilder confidence fell sharply in May on growing uncertainties stemming from elevated interest rates, tariff concerns, building material cost uncertainty and the cloudy economic outlook. However, 90% of the responses received in May were tabulated prior to the May 12 announcement that the United States and China agreed to slash tariffs for 90 days to allow trade talks to continue.
Economics
May 14, 2025
Permit Activity Declines in March 2025Permits continue a downhill trend for the third month in a row. Over the first three months of 2025, the total number of single-family permits issued year-to-date (YTD) nationwide reached 232,221. On a year-over-year (YoY) basis, this is a decline of 3.8% over the March 2024 level of 241311. For multifamily, the total number of permits issued nationwide reached 113,344. This is 3.7% below the March 2024 level of 117,695.