Share of Active Home Buyers is Up as Competition Decreases

Trends
Published

The share of prospective home buyers who are actively engaged in the process to buy a home rose to 49% in the second quarter of 2022, after declining for three straight quarters. The pivot is likely driven by less competition, as many would-be buyers have exited the market in recent months because of rising interest rates.

Except for the South, the share of prospective buyers actively searching for a home rose in every region between the first and second quarters of 2022:

  • Northeast (from 50% in Q1 to 54% in Q2)
  • Midwest (from 40% in Q1 to 51% n Q2)
  • West (from 46% in Q1 to 57% in Q2)

Housing availability expectations are on the rise as well. After falling steadily for five quarters, the share expecting their home search to get easier in the months ahead grew from 17% to 22% between the first and second quarters of 2022.

Affordability expectations also improved in the second quarter of 2022 — for the first time since 2020. The share of prospective buyers able to afford at least half of the homes available rose from 19% to 23%. However, a likely reason is because the exit of first-time home buyers from the market is also tilting the composition of prospective buyers toward wealthier buyers better able to absorb recent increases in mortgage rates.

These results come from the latest Housing Trends Report (HTR) — 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. Visit Eye on Housing to learn more about the second quarter 2022 data.

Subscribe to NAHBNow

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

Log in to subscribe

Latest from NAHBNow

Workforce Development | HBA | Codes and Standards | Sustainability and Green Building

Aug 21, 2025

Santa Fe Students Build ‘Tiny’ Homes to Test Energy Efficiency Codes

To benefit the community and provide students hands-on construction experience, the Santa Fe Area Home Builders Association recently completed the Northern New Mexico Ice Box Challenge.

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.

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.