Desire for Home Ownership Moderated Slightly in Q3 2021 but still Remains Strong
Desire for Homeownership Cools
At the onset of the COVID-19 pandemic in Q1 of 2020, the share of adults planning a home purchase hit a low of 10%. However, over the next five consecutive quarters that number increased and peaked at 17% in Q2 of 2021. Home purchasing desire cooled in Q3 of 2021, with share falling to 16%.
According to the results of the National Association Home Builders’ (NAHB) Housing Trend Report (HTR), the number of prospective first-time buyers increased for a fourth consecutive quarter in Q3 2021, up to 65%. A year ago, the share was 56%. The HTR also provides a regional breakdown. Between Q2 and Q3 of 2021, the share of adults with plans to buy a home plummeted from 20% to 14% in the Northeast.
In contrast, the share increased in the West (17% to 19%) and held steady in the Midwest (at 13%) and in the South (at 17%). Of note, over half of prospective buyers in every region are 1st-timers.
In Q3 of 2021, a record 69% of buyers in the Midwest are buying for the first time, along with 65% of those in the Northeast and South, and 61% in the West.
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