More Buyers Turn to Newly Built Homes as Availability of Existing Homes Remains Tight
Some Buyers Turning to New Construction
According to the latest Housing Trends Report (HTR), the popularity of new homes rebounded in Q2 of 2022 after declining steadily for the previous five quarters. The HTR is reporting that 21% of prospective buyers reported looking at a newly built home in Q2, up from 19% in Q1. The NAHB speculates that the possible reason for buyers turning to new homes for sale comes from the continuing tight supply of existing homes, as well as the recent growth in the availability of new homes for sale.
The HTR says the increased interest in new homes is being driving entirely by the West region, where the share of buyers looking to buy a newly built home rose 24% in Q1 to 30% in Q2. On the other hand, the share declined in all the other regions during Q2.
The HTR is a research product created by the National Association of Home Builders’ (NAHB) economics team, with the goal of measuring prospective home buyers’ perceptions about the availability and affordability of homes for sale in their markets.
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