Buyer’s Perception of Home Affordability Improved in Q4 of 2020

The Housing Trend Report for Q4 2020, a research product created by the National Association of Home Builders (NAHB) Economics team, is reporting a rise in the number of home buyers who are reporting housing affordability is improving. According to the report 38% of buyers are able to afford half or more of the homes for-sale in their markets. In Q4 of 2019 that share was 21%. The increase is a sign that historically low mortgage rates continue to have a significant impact on buyers views of affordability rather than rising home prices. On the other hand, the share of buyers who can afford fewer than half the homes available in their markets dropped from 79% to 61% during the same time period.