Home Buyers’ Expectations of Affordability Declined Throughout All of 2021
The latest Housing Trend Report (HTR), released for Q4 2022, shows that home buyers’ expectations for affordability declined throughout 2021. In Q4, the share of buyers who could afford less than half the homes available in their market was at 76%. In the Q4 of 2020, it was 63%. It increased to 65% in Q1 of 2021, rose again in Q2 to 71%, and then moved higher in Q3 to 73%.
The HTR reports that between Q3 and Q4 of 2021, affordability expectations declined further in both the South and West. The share of buyers able to afford less than half the homes available in their area increased from 76% to 81% in the South and from 65% to 72% in the West.
When measured between Q4 of 2020 and 2021, however, buyers’ perceptions of affordability deteriorated in every region of the US.
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