Solely 15% of patrons had been searching for a newly-built residence at the beginning of 2018, however that share shot as much as 42% by the ultimate quarter of 2020 (after the beginning of the pandemic). Since then, nonetheless, curiosity for brand spanking new building has fallen steadily, as prices for constructing supplies – particularly lumber – have skilled double-digit progress. By the ultimate quarter of 2021, the share had dropped to 25%. In the meantime, 39% are ambivalent between a brand new or current residence, up from 27% a yr earlier. These outcomes come from NAHB’s newest Housing Traits Report.
The share of patrons who’d favor a newly-built residence declined in each area from the third to the fourth quarters of 2021: within the Northeast, from 34% to twenty-eight%; within the Midwest, from 21% to 16%; within the South, from 31% to 21%; and within the West, from 39% to 32%. The shares on the finish of 2021 are additionally considerably decrease than a yr earlier in each area. Throughout generations, solely 24% of Gen X patrons had been trying to purchase a brand new residence on the finish of 2021, down from 48% a yr earlier.
* The Housing Traits Report is a analysis product created by the NAHB Economics workforce with the aim of measuring potential residence patrons’ perceptions concerning the availability and affordability of properties for-sale of their markets. The HTR is produced quarterly to trace adjustments in patrons’ perceptions over time. All information are derived from nationwide polls of consultant samples of American adults performed for NAHB by Morning Seek the advice of. Outcomes are seasonally adjusted. An outline of the ballot’s methodology and pattern traits could be discovered here. That is the second in a collection of six posts highlighting outcomes for the fourth quarter of 2021. See earlier put up on plans to purchase.