Home Buyers’ Interest in New Construction Continues to Accelerate in 2022

Posted on October 26, 2022

According to the latest National Association of Home Builders (NAHB) Housing Trend Report (HTR)—a product created by the NAHB Economic Team—the popularity of new homes continues to rebound.

The HTR reports that after bottoming at 19% in 2022Q1, the share of buyers looking for new home construction rose to 21% in 2022Q2 and climbed to 27% in 2022Q3. The HTR points to a 25% increase in inventory of new homes for sale as a potential reason for the market turn around to new construction. While the supply of existing homes for sale during the same time period was unchanged.

The report indicates that buyer’s interest in new homes is nationwide. From Q2 to Q3, the share of prospective buyers looking to purchase a new home climbed in all four regions:

  1. The Northeast increased from 18% in Q2 to 27% in Q3
  2. The Midwest rose from Q2 12% to Q3 18%
  3. The South climbed from 20% in Q2 to 26% in Q3
  4. The West grew from 30% in Q2 to 31% in Q3
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