In the Housing Trends Report for the third quarter of 2020, 27% of home buyers reported that they could afford half or more of the homes available for sale in their markets—up from 20% 12 months ago.
According to NAHB Eye on Housing’s Rose Quint, this indicates that lower mortgage rates have had a stronger impact on buyer perceptions than rising home prices. Still, the vast majority of home buyers still say they can only afford a few of the homes in their markets.
Between the third quarters of 2019 and 2020, the share of buyers who can afford half or more of the homes available rose most significantly among Millennials (17% to 31%), but dropped among Boomers (23% to 19%). Across regions, the share rose most significantly in the Northeast (21% to 39%), but dropped in the Midwest (23% to 19%).
