After peaking during the early phase of the pandemic, buyers’ perceptions of housing inventory worsened throughout 2021, and by the fourth quarter, only 24% expected easier availability ahead, the lowest share since the end of 2019, according to the NAHB. The decline in expectations reflect the large imbalance between housing demand and supply—particularly existing homes—seen in 2021.

Across regions, only 19% of buyers in the South had expectations at the end of 2021 that housing availability will ease up – the lowest share since the end of 2018. In fact, all regions have shown a decline in buyers’ perceptions of inventory during the year ended in the fourth quarter of 2021. During this period, the share of Gen X buyers who expect easing inventory conditions plummeted from 43% to 17%.

The share of buyers seeing more homes available on the market fell to 31% in the final quarter of 2021, down from 41% a year earlier.

Between the third and fourth quarter of 2021, the share of buyers seeing better availability either declined or remained unchanged in all four Census regions: Northeast (38% to 36%), Midwest (26% to 24%), South (flat at 25%), and West (flat at 36%).