Potential Home Buyers’ Perception of Housing Affordability Declines for Third Consecutive Quarter

According to the National Association of Home Builders’ (NAHB) latest Housing Trend Report (HTR), buyers’ perception of home affordability declined further in Q3 of 2021. In Q3, 73% of buyers estimated that they could afford less than half the homes available for sale in their markets. That is up from 71% in Q2 2021 and from 63% in Q4 of 2020.

The HTR concludes that the double-digit increases in home prices have eroded the positive impact low interest rates had on buyers’ perceptions of housing affordability throughout 2021.

As an example, between Q2 and Q3 of 2021, affordability expectations declined in the Northeast rising from 66% to 69%, while in the South they increased from an already high 75% to 76% in the time period. As a result, buyers’ perceptions of affordability have deteriorated in every region of the U.S.

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Original Source:
Perceptions of Housing Affordability Worsen for Third Straight Quarter