Affordability Expectations Improve as the Typical Buyer Changes
Prospective buyers in the third quarter of 2022 are more likely to have higher levels of income and education than earlier in the year. This helps explain why affordability expectations have improved. In the third quarter of 2022, 69% of buyers could only afford a minority of homes for sale in their markets, a much lower share than in the first (81%) or second (77%) quarters of the year. Conversely, the share able to afford at least half the homes available rose to 31%, up from 19% and 23% in the first two quarters of the year.
Affordability expectations between the second and third quarters of 2022 improved in all regions. In the Northeast, the share of buyers only able to afford a minority of homes dropped from 73% to 66%; in the Midwest, from 84% to 83%; in the South, from 82% to 77%, and in the West, from 70% to 58%.
What Share of All Homes Currently For-Sale in Your Market Is Affordable to You?
(Percent of Prospective Home Buyers)
**Results come from the Housing Trends Report– a research product created by the NAHB Economics team with the goal of measuring prospective home buyers’ perceptions about the availability and affordability of homes for-sale in their markets. The HTR is produced quarterly to track changes in buyers’ perceptions over time. All data are derived from national polls of representative samples of American adults conducted for NAHB by Morning Consult. Results are seasonally adjusted. A description of the poll’s methodology and sample characteristics can be found here. This is the fourth in a series of six posts highlighting results for the 3rd quarter of 2022. See previous posts on plans to buy, new vs. existing preference, and housing availability.