Consumers are increasingly tuning in to the topic of rising home prices in their communities. The National Association of Home Builders (NAHB) said prospective home buyers are particularly aware of the availability of affordable homes that are for sale in their local markets and perceiving it as a serious issue.
NAHB conducted a nationwide survey of 11,674 adults in the first quarter regarding their perceptions about the availability and affordability of housing in their markets. Of those 2,000 or 17 percent reported they plan to purchase a home within a year.
Those prospective homeowners were asked to estimate the share of for-sale homes in their markets that they could afford to purchase. Eighty-three percent said they could afford fewer than half of the available homes. In the previous survey, conducted in the fourth quarter of 2017, 79 percent expressed that opinion. This means that only a small minority of potential buyers think they can afford the majority of homes available on the market: 17% in the first quarter of 2018 and 21% in the last quarter of 2017.
Millennials were the most likely to view most homes as out of reach; 86 percent said they could afford fewer than half of currently listings, but large numbers in older age cohorts expressed that perception as well.
The results of what NAHB says will be an ongoing series of surveys are published as part of a new research product called the Housing Trends Report (HTR). This is the third report based on the first quarter 2018 survey.