First-Time Home Buyers Are Taking a Step Back
The share of adults planning to purchase a home within a year fell for a third straight quarter to 13%. The last time fewer American adults intended to buy a home was in the second quarter of 2020 (11%). The decline is evidence that the COVID-induced boost to housing demand is past its peak and is now softening.
Part of this moderation is because first-time home buyers are taking a step back. Their share of prospective buyers has fallen for two consecutive quarters — from 65% in the third quarter of 2021 to 60% in the first quarter of 2022 — to roughly pre-pandemic levels. This decline can be seen in all regions of the United States.
These results can be found in NAHB&rsquos Housing Trends Report — a research product created by the NAHB Economics team with the goal of measuring prospective home buyers' perceptions about the availability and affordability of homes for-sale in their markets.
Rose Quint, NAHB assistant vice president for survey research, provides more information in this Eye on Housing post.