Buyers Views of Home Affordability Improves in Q3 2020

According to the Q3 2020 Housing Trends Report (HTR) from the National Association of Home Builders (NAHB), 27% of buyers reported being able to afford half or more of the homes available for-sale in their desired markets. In Q3 of 2019, that number was only 20%. The increase in housing affordability over the past 12 months is an indication that lower interest rates have had a strong impact on some buyers’ views of affordability than rising home prices. The NAHB does point out that while 27% believe housing is becoming more affordable, ~72% still say they can afford only a small fraction of the homes available in their desired market.